In Re Bruce Elieff

I. Background

Bruce Elieff (“Elieff”) filed for bankruptcy in 2019 under Chapter 11 of the Bankruptcy Code. See Appellant’s Excerpts of Record, Dkt. # 8-2 (“ER”), at 95. Elieff initiated adversary proceedings later that year, advancing several claims to subordinate Kurtin’s $34 million proof of claim under 11 U.S.C. § 510 (“Subordination Claims”). Elieff also sought to avoid various prepetition liens Kurtin recorded to secure the same $34 million claim under 11 U.S.C. §§ 544, 547, and 548 (“Avoidance Claims”). Id. The Bankruptcy Court dismissed with prejudice one claim under § 510(c)(2), but all other claims were allowed to proceed. See Appellee’s Supplemental Excerpts of Record, Dkt. # 9-1 (“SER”), at 9. In 2020, the case was converted to a case under Chapter 7 of the Bankruptcy Code, Ehrenberg was appointed as trustee, and he took over as plaintiff in the adversary proceedings. ER 95. Later that year, Ehrenberg moved for summary judgment on the surviving Subordination Claims and for either (1) reconsideration of the dismissal with prejudice of the § 510(c)(2) claim CV-90 (10/08) CIVIL MINUTES - GENERAL Page 1 of 5 Case 8:21-cv-01293-PSG …