Study Aids
Case Briefs Overview
Casebooks
Case Briefs
B

Bonner Mall Partnership v. U.S. Bancorp Mortgage Co. (In re Bonner Mall Partnership)

2 F.3d 899 (1993)

From our private database of 46,500+ case briefs, written and edited by humans—never with AI.

Bonner Mall Partnership v. U.S. Bancorp Mortgage Co. (In re Bonner Mall Partnership)

United States Court of Appeals for the Ninth Circuit
2 F.3d 899 (1993)

Facts

Bonner Mall Partnership (Bonner) (debtor) owned mall property that was subject to a lien held by U.S. Bancorp Mortgage Company (Bancorp) (creditor). After Bonner failed to meet its financial obligations, Bancorp commenced foreclosure proceedings and scheduled a sale of the property for March 14, 1991. On March 13, Bonner filed for Chapter 11 bankruptcy, which automatically stayed the sale. Bonner subsequently proposed a reorganization plan that relied on the new-value exception to the absolute-priority rule (i.e., the rule that a reorganization plan must pay a class of unsecured creditors in full before junior claimants can receive anything under the plan). Under the new-value exception, which existed prior to the enactment of the Bankruptcy Code, shareholders of a debtor corporation could retain an interest in the reorganized entity by making a new capital contribution, even if a class of objecting creditors had not been fully paid. Bancorp moved for relief from the automatic stay, asserting that the new-value exception was no longer viable after the enactment of the Bankruptcy Code. The bankruptcy court agreed and granted Bancorp’s motion. However, the district court reversed, holding that the Bankruptcy Code had not eliminated the new-value exception. Bancorp appealed.

Rule of Law

Issue

Holding and Reasoning (Reinhardt, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 832,000 law students since 2011. Some law schools even subscribe directly to Quimbee for all their law students.

    Unlock this case briefRead our student testimonials

  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.

    Learn about our approachRead more about Quimbee

Here's why 832,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 46,500 briefs, keyed to 994 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 832,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 46,500 briefs - keyed to 994 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership

Casebooks

Bankruptcy

Key Terms