Tag Archives: commercial property litigation

Res Judicata Cannot Be Used to Shield Fraudulent Debtor Behavior

In the recent case of Wells Fargo Bank, National Association v. Weinberg, the Court set an important precedent that applies to the amendment of judgments to add individual debtors as alter egos of the corporation:

 

“The doctrine of res judicata1 did not bar the amendment of a judgment to add an alter ego2 as a judgment debtor, even if the issue of alter ego could have been raised earlier, as long as alter ego liability is a separate and distinct claim from the underlying action.”

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Creditors Rights Attorney Representing Secured Creditors Beware

Creditors Rights Attorneys Must Recognize Clarified Stay Termination Requirements for Chapter 7 Cases

There is a common misconception among both creditors and creditors rights attorneys that once property is abandoned by the Chapter 7 Trustee in a bankruptcy, the protection of the automatic bankruptcy stay no longer applies. This would free a secured creditor with an interest in the abandoned property to enforce its rights in the property. However, the Ninth Circuit made clear in Gasprom, Inc. v. Fateh (In Re Gasprom), 500 B.R. 598 (2013), that the Trustee’s abandonment of property alone is not sufficient to terminate the full protection of the automatic bankruptcy stay under 11 U.S.C. § 362.  Creditors must wait until the stay is formally terminated by the court or by the closing of the bankruptcy case. A foreclosure attorney must ensure that an automatic stay is terminated, or that the bankruptcy case is closed, before issuing guidance that the client may proceed with foreclosure. Continue reading

Resolving Tenant-Owner Commercial Property Claims

Commercial vs Residential Use, Property Damage Liability and Lawful Detainers

We defended the owner of a commercial property (a lender that had foreclosed and credit bid at the foreclosure sale) in a civil action by the former tenant of the property that had been evicted in an unlawful detainer action we prosecuted for the owner/lender. Continue reading