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In Re Chi Feng Huang

23 B.R. 798 (1982)

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In Re Chi Feng Huang

United States Bankruptcy Appellate Panel for the Ninth Circuit
23 B.R. 798 (1982)

  • Written by Philip Glass, JD

Facts

Florence Chi-Feng Huang and Sheila Chen Huang (the Huangs) (debtors) filed for Chapter 11 bankruptcy, with Jerome E. Robertson appointed as trustee. Robert L. Pierce (creditor) requested relief from the automatic stay on a prepetition real estate contract. Robertson then sought rejection of the contract. The trial court lifted the stay and denied the rejection, ruling that rejection would deny Pierce’s expectations of increasing property value. The court assigned little weight to the benefits from rejection to unsecured creditors. In denying rejection, the court determined that specific performance would leave equity capable of satisfying all participating secured creditors. Claims by the Huangs’ friends and family, nonparticipating unsecured creditors, were excluded from computation without a hearing despite these claims’ capacity to influence the calculation. The Huangs appealed.

Rule of Law

Issue

Holding and Reasoning (Elliott, J.)

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