In Re Perez
United States Court of Appeals for the Ninth Circuit
30 F.3d 1209 (1994)
- Written by Rose VanHofwegen, JD
Facts
Gary Perez (debtor) owned and managed two Jimboy’s Tacos franchises. Perez hired Frank Everett to supervise remodeling one franchise, then failed to pay him. When Everett obtained a judgment against Perez, Perez filed for bankruptcy under Chapter 11. After Perez proposed two reorganization plans that the bankruptcy court rejected, Perez’s third plan placed Everett’s $30,000 claim in the same class as other general unsecured creditors with claims totaling $20,400, making Everett the controlling class member. The plan would pay all unsecured claims in full over 67 months without interest, while Perez would retain possession and control of the estate property and continue to operate the business. Only Everett voted against the plan, but that meant his class rejected the plan. The bankruptcy court nonetheless approved the plan under cramdown provisions that allow approval over the objection of a class of unsecured creditors. Everett appealed, but the Bankruptcy Appellate Panel affirmed. Everett appealed to the Ninth Circuit on several grounds, including that the plan violated the absolute-priority rule by failing to pay the objecting class claims in full.
Rule of Law
Issue
Holding and Reasoning (Kozinski, J.)
What to do next…
Here's why 832,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 46,400 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.
