Kane

South River Capital, LLC v. Kane

Good Law
United States District Court, Northern District of CaliforniaJuly 22, 20223:21-cv-03493California5,796 words

Opinion

Trial Court Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA 6 SOUTH RIVER CAPITAL, LLC, Case No. 21-cv-03493-WHO

Appellant,

ORDER ON BANKRUPTCY APPEAL

v.

EVANDER KANE, Appellee.

12 This is one of two appeals from a bankruptcy court order denying a motion to convert debtor Evander Frank Kane’s bankruptcy case from Chapter 7 to Chapter 11 under section 706(b) of the Bankruptcy Code. The Code is silent regarding what bankruptcy courts must consider in deciding whether to convert a case. The case law has filled in the gaps, finding that courts have broad discretion in exercising this power based on a determination of what “will most inure to the benefit of all parties in interest.” The bankruptcy court did not abuse its discretion in declining to covert Kane’s Chapter 7 case to Chapter 11. It did not, as appellant South River Capital, LLC (“South River”) asserts, impose an incorrect legal standard or improperly heightened burden of proof in reaching its decision. And it did not err in its consideration of the facts as they…

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