3MB, LLC

UNITED STATES BANKRUPTCY COURT

EASTERN DISTRICT OF CALIFORNIA

FRESNO DIVISION 3 In re ) Case No. 18-14663-B-11 ) 3MB, LLC, ) DC No. LKW-10 ) ) Debtor. ) 7 ) ) )

10

MEMORANDUM DECISION ON DEBTOR 3MB’S OBJECTION TO

ALLOWANCE OF U.S. BANK’S AMENDED CLAIM 13 INTRODUCTION Debtor limited liability company borrowed about $9.5 million from claimant’s predecessor secured by the debtor’s shopping center and the rents the center generates. The debtor could not retire the loan when it matured two- and one-half years ago. Then this chapter 11 case was filed halting claimant’s foreclosure efforts. Claimant filed a proof of claim. The debtor now objects to the default interest portion of the claim. Debtor contends the default interest is unenforceable as an invalid liquidated damage clause under California and Bankruptcy law. Finding the default interest provision is not a liquidated damages clause or if the debtor is correct…