Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

Garvin v. Cook Investments NW

United States Court of Appeals, Ninth Circuit

May 2, 2019

Gregory M. Garvin, Acting United States Trustee for Region 18, Appellant,
v.
Cook Investments NW, SPNWY, LLC; Cook Investments NW, Fern, LLC; Cook Investments NW, LLC; Cook Investments NW, Darr, LLC; Cook Investments NW, Arl, LLC, Appellees.

          Argued and Submitted December 3, 2018 Seattle, Washington

          Appeal from the United States District Court for the Western District of Washington D.C. No. 3:17-cv-05516-BHS Benjamin H. Settle, District Judge, Presiding

          Sonia Carson (argued) and Mark B. Stern, Appellate Staff; Annette L. Hayes, Acting United States Attorney; Joseph H. Hunt, Assistant Attorney General; Civil Division, United States Department of Justice, Washington, D.C.; Wendy Cox, Trial Attorney; P. Matthew Sutko, Associate General Counsel; Ramona D. Elliott, Deputy Director/General

          Counsel; Department of Justice, Executive Office for United States Trustees, Washington, D.C.; for Appellant.

          James L. Day (argued) and Aditi Paranjpye, Bush Kornfeld LLP, Seattle, Washington, for Debtors-Appellees.

          Before: Susan P. Graber, M. Margaret McKeown, and Morgan Christen, Circuit Judges.

         SUMMARY[*]

         Bankruptcy

         The panel affirmed the district court's decision affirming the bankruptcy court's order confirming the second amended Chapter 11 plan of five real estate holding companies.

         One of the debtors leased property to a company that used the property to grow marijuana. The United States trustee objected that the lease violated federal drug law, and so the plan was unconfirmable under 11 U.S.C. § 1129(a)(3) because it was proposed by means forbidden by law.

         The panel held that § 1129(a)(3) directs bankruptcy courts to police the means of a reorganization plan's proposal, not its substantive provisions. The panel affirmed confirmation of the plan because it was not proposed by any means forbidden by law.

          OPINION

          McKEOWN, CIRCUIT JUDGE:

         Facing insolvency, five real estate holding companies owned and managed by Michael Cook (collectively, "Cook" or the "Cook companies") sought Chapter 11 protection. Cook's foray into Chapter 11 was by most standards a resounding success. It culminated with the Second Amended Joint Debtors' Plan of Reorganization ("Amended Plan"), which paid all creditors in full and provided for Cook to continue as a going concern. The Amended Plan was confirmed by the bankruptcy court.

         But now the United States Trustee ("Trustee") asks that the Amended Plan go up in smoke, because one of the Cook companies leases property to N.T. Pawloski, LLC ("Green Haven"), which uses the property to grow marijuana. The Trustee complains that, even if Green Haven's business complies with Washington law, the lease itself violates federal drug law. The Trustee reasons that this violation proves the Amended Plan was "proposed . . . ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.