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In Re Fred Lowenschuss, Debtor. Resorts International, Inc. v. Fred Lowenschuss
67 F.3d 1394
9th Cir.
1995
Check Treatment

*1 upon the re- supervised release conditions broad conditions the three each of meet must 3583(d). However, payment § of CJA funds. in 18 U.S.C. forth set satisfy the fails to recoupment condition purpose of limited for the REMANDED “reasonably re- the condition first —that the above in accordance with resentencing rehabilitation, deter- goals of to the lated” instructions. training rence, public, and of the protection simply recoupment order treatment. or goals. any of these relationship no to bears underlying crimi- Eyler’s not related

It is of fire- possession

nal conduct—unlawful Nor effects. has no rehabilitative

arms —and protect goals, any it further deterrence does crimes, provide public from future LOWENSCHUSS, Be- any training or treatment. Eyler with Debtor. In re Fred satisfy first this condition fails cause INTERNATIONAL, RESORTS satisfy it fails a requirement, fortiori INC., Appellee, Although highly doubtful is second. satisfy the third re- could a condition such v. no to consider quirement, there is need LOWENSCHUSS, Appellant. Fred question here. No. 94-16287. impose a court to discretion of district it con- supervised release that of conditions Appeals, of United States Court express appropriate is limited siders Ninth Circuit. 3583(d). that a § A condition

provisions of attorneys violates repay fees CJA defendant July Argued and Submitted and, accordingly, exceeds provisions these 10, 1995. Decided Oct. Thus, authority.11 we re- district court’s condition of su- imposition of the verse ordering recoupment of CJA

pervised release

funds.

n improper that it was we conclude Because for the district court matter of law

aas repayment of supervised release

condition fees, not address attorneys we need

CJA district court

Eyler’s argument ability to had the concluding that he

erred

comply the condition. with

CONCLUSION reasons, foregoing we remand

For the to afford court with instructions

the district 3E1.1(b)(1) point reduction under one accordingly. Eyler’s recalculate sentence is instructed

The district court further Eyler’s portion of sentence

strike probation, and the Judicial violating condition of Con- the ex- We note that in addition statute, conditioning of the reimbursement cost press of the ference believes that terms relevant attorneys repayment supervised release on not be representation the Act should under Guidelines fees is also inconsistent probation under other made a condition of Justice Act. Criminal the Administration authority. Judiciary Policies and Proce- See 7 Guide To statements, purposes we see no Id. For these (1990). Regarding CJA funds and dures at probation and significant difference between su- defendant, guidelines payments by these state: pervised release. (f) authorize a does not Subsection Act judicial require as officer to reimbursement *2 Smith, Reno, Cope,

Alan R. Smith & Neva- da, appellant. for Karlan, Gibson, Mitchell A. Dunn & Crutcher, York, York, New appellee. New CHOY, CANBY, Before FERNANDEZ, Judges. Circuit CHOY; Opinion by Judge Partial Concurrence and Dissent Judge Partial FERNANDEZ. convey- for fraudulent adding plaint, claims

CHOY, Judge: Circuit ance. district appeals the Fred bankruptcy court’s reversal complaint was By time the amended held that district *3 The decision. filed, Chapter 11 reor- filed for Resorts had (1) refused to when it erred

bankruptcy court Bankruptcy States in the United ganization (“Resorts”) International, Inc. allow Resorts (“New Jersey of New for the District Court Lowen- from proofs of claim to withdraw Court”). Accordingly, Jersey Bankruptcy bankruptcy proceedings schuss’s Lowenschuss was against action Resorts’s (2) against discharged all claims prejudice; Bankruptcy Jersey New to the removed Pension Associates Lowenschuss the Fred Court. Plan”) (the it confirmed when “Pension Plan reorganization Chapter Jersey New February Lowenschuss’s On (3) Plan”); (the and “Reorganization plan mo- Lowenschuss’s Bankruptcy denied between jurisdiction litigation over retained dismissal summary judgment for tion and/or regarding an Plan and Pension Resorts part in granted complaint and of Resorts’s money in unauthorized transfer allegedly summary judg- for Resorts’s cross-motion We affirm exchange Resorts stock. for ment, between finding the transaction court’s decision. district illegal con- was an and Lowenschuss Resorts of recision the remedies tract. The court left I. trial, open for and restitution Fred established In Lowenschuss Jersey 16, 1992, the New because On June Associates, cor- professional Lowenschuss could not ascertain Bankruptcy Court employ- all Plan for with a Pension poration, exchange money received of the location Dur- Associates. of Fred Lowenschuss ees Resorts allegedly illegally tendered for the appeal, relevant to this ing period time dissipation or stock, enjoin the in order to trustee, adminis- has been Lowenschuss money, it an order entered transfer of the beneficiary of the trator, sponsor, and sole Lowenschuss, both broadly applied to which Plan held assets The Pension Plan.1 Pension or trust- representative personally and as $8,000,000, neighborhood of in the valued fund,” including the Fred Lowen- “any ee of holdings in Re- substantial which included IRA, IRA, Lowenschuss Laurance schuss stocks bonds. sorts and Plan. and the Pension complaint Resorts’s 26, 1989, filed an September Resorts On Reorga- Chapter 11 Files Lowenschuss for Lowenschuss, individually and action nization IRA and Fred Lowenschuss as trustee 24, 1992, com- Lowenschuss August On IRA, in the Unit- Lowenschuss the Laurance reorganiza- voluntary Chapter menced Eastern for the District Court ed States Bankruptcy Court in the States tion United claimed Pennsylvania.2 Resorts District of (“Nevada Bank- of Nevada for District intentionally willfully and Lowenschuss Court”). alleges that it was ruptcy $3,805,200by tendering defrauded Resorts Jersey fraud case its New prepared try per share stock for $36 of Resorts shares Lowen- weeks before against Lowenschuss proceeding appraisal he

when knew com- Chapter Upon 11. for schuss filed sought to rescind the pending. Resorts Chapter 11 of Lowenschuss’s mencement unilateral mis- grounds of on the transaction Court, Bankruptcy Nevada take, fraud, On illegality of contract. in the against Lowenschuss Resorts’s action 1,1990, its com- Resorts amended November Inc, Int'l, re v. Lowenschuss began action. Resorts July Laurance Lowenschuss 89-10120, 89-10119, Int’l, Inc.), 89- Plan. acting of the Pension Nos. as a trustee 13, 1995). (Bankr.D.N.J. June 89-10462 by the New caption been Court, has modified of the Pension that the trustee Order clarifies took over the Jersey party Id. action.” been a Plan “is has case, individually and as to include at 2. in the Plan as defendants of the Pension trustee Jersey New Bankruptcy Court was automati- tered a global release which released all cally stayed 362(a). pursuant to 11 U.S.C. shareholders who received a share $36 from (4) possible claims; Resorts or its desig- 8, 1993, On March Lowenschuss filed a nee received full consideration for pay- Disclosure Statement Reorganization and a ment made receipt Resorts; of stock in Plan. These documents revealed that Low- (5) ex-wife, Selnick, received Beverly the same payment enschuss’s was the largest stock from the creditor in Pension Plan as it did estate from a claim all other million. The shareholders $5.3 who tendered Disclosure stock. Statement indicated that Re- Jersey

sorts’s New action the Pen- July 21, 1993, On the Nevada Bankruptcy primary sion Plan was a reason for Lowen- Court ruled that the Pension Plan was ex- *4 Chapter sehuss’s 11 filing and classified the empt from Lowenschuss’s bankruptcy estate. litigation action affecting as bankruptcy the Lowenschuss, In re No. BK-N-92-3174-JHT estate. (Bankr.D.Nev. 1993) (the at 3 July 21, “Pen- Reorganization Plan included a “Glob- Order”).3 sion Plan Exemption provision, al Release” which released numer- September 17, 1993, On Resorts filed an parties, ous including Lowenschuss and the objection to the confirmation of the Reorga- Plan, Pension from all upon claims confirma- Plan, nization arguing that the bankruptcy tion of the Reorganization Plan. Further- court does not power grant the to the more, Reorganization the provided Plan that Global Release Provision provi- because the it being by was funded both Lowenschuss’s purports sion to against release claims non- income from the Pension Plan and the debtors, such as the Pension Plan. At the Pension directly. Plan 23, September hearing objections on to 25, May 1993, Resorts, On believing that proposed the plan, the Nevada Bankruptcy the money might transferred prop- constitute Court ruled that the Global Release Provi- erty of estate, bankruptcy Lowenschuss’s as- sion improper was and held that Provi- the serted itself as the largest second creditor. sion could not release non-debtors such as claim, Resorts proofs filed two of one in an the Pension Plan. unliquidated amount, and in the other the The trial on Resorts’s claim Low- $3,805,200 amount of plus interest. As the enschuss’s bankruptcy estate post- had been claims, basis for the copies Resorts annexed poned until October 1993. Two weeks complaint of its and amended complaint before the trial place, was to take Resorts 24, 1993, Lowenschuss. On June moved to proofs withdraw its of claim from objection Lowenschuss filed an to Resorts’s bankruptcy Lowenschuss’s (1) proceedings claims grounds on the with- that the claim has out legal no and with basis certain conditions.4 because shareholders were By time, permitted this to had withdraw their claim Resorts ascertained ap- that for praisal Plan, and surrender Pension shares for which had payment; exempted been (2) the claim has no from legal bankruptcy estate, basis because Lowenschuss’s Re- held paid (3) sorts money Debtor; no allegedly illegally in Re- transferred funds. sorts’s bankruptcy proceeding, the en- judge September 23, 1993, And on the Nevada 19, 1994, August 3. On the Nevada District prejudice, but request- the conditions that it Exemption vacated the Pension Plan Order and permitted it be ed—that proofs reinstate its remanded for fact-finding. further Selnick v. claim in the estate should the Pen- (In Lowenschuss), Lowenschuss re No. CV-N-93- part sion upon Plan become of the estate a rever- (Bankr.D.Nev. 19, 1994). Aug. 565-ECR When sal court’s Pension Plan Ex- appealed Lowenschuss ruling, from this emption Order and party it remain a in appeal court dismissed the appellate for lack of request interest its —rendered jurisdiction. Selnick v. re Low equivalent the functional of a motion to with- enschuss), 9, 1994). No. 94-16618 Cir. Dec. prejudice. draw Accordingly, we treat date, Consequently, to this the issue of whether requested withdrawal as such. Even Lowen- Plan, the Pension or Lowenschuss's in interest originally sought schuss concedes that Resorts plan, property is of the Lowenschuss bank prejudice. Appel- withdraw without See Brief of ruptcy estate remains unresolved. lee at Technically, in its motion its withdraw claim, proofs requested Resorts withdrawal Bank- the Nevada October On the Reor- ruled had Bankruptcy Court Reor- Lowenschuss’s re- confirmed general ruptcy Court grant Plan could ganization Plan, including the Plan. Global Pension ganization like the to non-debtors leases Furthermore, Re- in the rulings, and because Confirma- these Provision. light of essentially against the retained Order, court complaint sorts’s tion would argued it Plan, Resorts litigation between Pension future over jurisdiction against Lowen- litigate it to individually for Lowenschuss, futile and Resorts unnecessary estate Plan, schuss’s Pension as trustee and/or a creditor itself as assert it to continue for Plan. in the Pension interest sought to bankruptcy estate. in his retaining jurisdiction question Since (1) it could conditionally, such withdraw signed in time the first appeared the Pen- if that of claim proofs reinstate given Order, was never Confirmation were reversed Exemption Order Plan sion object. opportunity later consoli- bankruptcy or the appeal Debtor’s with the Pension Plan dated Ruling Court’s District (2) party estate; remain Nevada appealed the case. interest 12, 14, and of October Orders Court’s motion on Resorts’s hearing was held A *5 9, 1994, District Nevada the 1993. On June 12, on October claim proofs of its withdraw favor, holding that in Resorts’s ruled Court Bankrupt- hearing, the Nevada At the 1993. discretion its bankruptcy court abused the to with- motion Resorts’s cy denied Court to withdraw Resorts it allow when refused choice Resorts a conditionally gave and draw district claim. The conditionally proofs its of prejudice withdrawing claim with its between have should that Resorts court reasoned to liti- proceeding conditions without condi- with the to withdraw permitted been bank- Lowenschuss’s its claim gate Exemption Or- Plan the Pension that if tion constituted, on estate, then itas was ruptcy reversed, its could reassert were der hesitated, the When Resorts merits. the proofs of claim. Re- to withdraw. the motion denied stay ruling and moved Global appealed vacated the sorts court also The district On appeal. the pending proceedings Provision, bankrupt- finding further the Release 1993, Court 13, the Nevada District October discharge the authority to no cy court had a for emergency motion denied Resorts’s non-debtors, Pen- including the liabilities proceedings. stay of further sion Plan. 1993, hearing 14, day On October court vacated Finally, the district begin, scheduled claim was on Resorts’s jurisdiction court’s assertion bankruptcy unconditionally to withdraw Resorts moved litigation against the future over Resorts’s bank- Lowensehuss’s of claim from proofs eourt The district Pension Plan. non-debtor Lowen- prejudice. Over ruptcy estate as- court cannot bankruptcy that the ruled Bankruptcy objections, Nevada sehuss’s third litigation between jurisdiction over sert granted the motion. Court Pension as Resorts parties, such 1993, 27, the confirmation On October Plan, litigation will affect where Reorganization hearing Lowenschuss’s for bankruptcy estate. pre- counsel held. Lowenschuss’s Plan was timely appealed the district Reorganiza- originally-proposed sented decision, jurisdiction and we court’s Plan, the Global included tion 158(d) §§ 28 U.S.C. pursuant disput- previously had Resorts Provision that justified the rein- counsel ed. II. by arguing plan original troduction and its longer a creditor nowas WITH- that Resorts VOLUNTARY A. RESORTS’S When objections ignored. should PREJUDICE WITH DRAWAL confirmation, the protest attempted to 1. Mootness denied Resorts Nevada Resorts’s First, whether must consider we reasoning that speak, opportunity to court’s refusal appeal from bankruptcy. to the longer party a no

1399 permit to withdraw preju- Re- refusal of proofs dice its of claim from Lowenschuss’s request sorts’s a conditional with- for estate is mooted Resorts’s drawal subsequent voluntary unconditional with- We review de novo the district prejudice. drawal with court’s decision on an appeal from a bank court, ruptcy applying the same standard of plaintiff may Just as a appeal a review the court’s findings voluntary as prejudice dismissal without when did the district court. Estates, In re Tucson imposed the trial legally court has a prejudi Inc., 1162, (9th Cir.1990). 912 F.2d 1166 dismissal, cial We condition v. LeCompte for review abuse a Inc., Chip, 601, (5th Mr. court’s exer 528 F.2d 603-04 cise of discretion over a Cir.1976), voluntary creditor’s may plaintiff too appeal so withdrawal of Hankins, See claims. Koch v. voluntary Unioil, dismissal with prejudice. (9th 650, (“district 8 F.3d Cir.1993) 652 Co., Inc. v. E.F. Hutton 548, & 809 F.2d 556 (9th Cir.1986) court’s determination of (“a the terms and condi prejudice dismissal with tions 41(a)(2) of dismissal under Fed.R.Civ.P. ... appealable, voluntary [is] whether or in is reviewed (citation discretion.”); abuse voluntary.”) omitted), see denied, cert. Guild, also Clark, Lawler v. Hagen Ltd., 822, & 484 U.S. 108 S.Ct. 98 L.Ed.2d 45 Lawler), re (Bankr. B.R. (1987), denied, and cert. 484 U.S. N.D.Tex.1989) (bankruptcy court’s decision (1987); S.Ct. 98 L.Ed.2d 47 see also grant proof withdrawal of Co., subject claim Coursen v. A.H. Robins discretion). review for abuse of Cir.1985), corrected, 773 F.2d 1049 (9th Cir.1985) (“While a plaintiff ap cannot recognize We the bankruptcy peal voluntary dismissal without court’s exercise of discretion should not be *6 [unless a condition is imposed that creates disturbed unless we have “‘a definite and legal prejudice], he or may appeal she firm conviction that the court below commit prejudice.”). dismissal with The ted a clear judgment error of in the conclu permit court’s refusal Resorts to withdraw sion it upon reached a weighing the rele ” conditionally proofs its of claim is therefore vant Moneymaker (In factors.’ v. CoBen appealable. Eisen), (9th re 1447, Cir.1994) 31 F.3d 1451 (quoting Healey v. Transportacion Maritima Contrary to argument, Mexicana, S.A., (9th 662 F.2d 1278 position we are in to fashion effective and Cir.1980)). equitable relief for Resorts on this issue. Spirtos See v. Moreno Spirtos), re 992 Federal of Bankruptcy Rule Proce (9th Cir.1993). F.2d 1007 We find that dure governed which is by the same the court its by abused discretion underlying considerations Federal Rule of refusing to allow its withdraw 41(a)(2), Civil Procedure provides that volun proofs of claim from Lowenschuss’s bank tary granted dismissals should only be upon ruptcy without prejudice. estate We there an order of the court which “shall fore reverse this refusal. The bankruptcy contain such terms and conditions as the provided court Resorts with no real alterna proper.” court 3006; deems Fed.R.Bankr.P. tive but to proofs withdraw its of claim with id., (1984). Advisory see Committee Note In prejudice and without conditions. Resorts deciding grant whether to a voluntary dis attempted stay the or missal, a trial court must consider whether refusing der a conditional withdrawal pend the defendant will legal suffer prejudice as a ing appeal its ruling, the but to no avail. result of the court’s Hyde dismissal. See & We can fashion effective relief requiring Baker, Drath v. that withdrawal preju Resorts’s is without Cir.1994); LeCompte, see also 528 F.2d at dice, with requested the (“[We] conditions. If the follow principle the traditional Nevada Bankruptcy Court determines that that dismissal should be allowed unless the the Pension part Plan is of Lowenschuss’s plain defendant will prejudice suffer some estate, will be entitled to reinstate other than the prospect mere a second proofs lawsuit.”) of claim. (citations (emphasis in original) And counsel]: Unioil, [Resorts’s Mr. Goodenow omitted) (cited approval with Honor, for, is that we your motion asks 556). our at

F.2d with the claim to withdraw allowed be plaintiff the at F.2d LeCompte, 528 In that we can condition with prejudice prej- without voluntary dismissal requested appeal on you’re reversed in if back come dismissal, the district granting udice. It’s a pension plan. to the order as on conditions, one several attached court aggressive, really not pretty si—it’s plaintiff requirement was a requesting relief we’re type of aggressive relitigat- case before his prove preliminarily go ease asking that this just for. We’re vacated Fifth Circuit The at 604. ing. Id. orderly in an fashion. be- forward dismissal conditional and remanded to consider failed go court Why district ahead don’t we cause Court: The prejudiced would Thursday. the defendant claim] whether just [the hear be- dismissal by an unconditional legally Let’s counsel]: [Lowensehuss’s Smith Mr. existed, the court cause, if such that. That’s— do of its imposition explain how failed Fine. The Court: legal prejudice alleviate would conditions Honor, not that does Your Mr. Goodenow: in- court The district the defendant. pursue it for Resorts sense make what interests determine to “better structed manner. only such condi- fashion and to stake are at Well,— The Court: legiti- necessary protect are tions as all, the order —the First Mr. Goodenow: at 605. Id. of defendants.” mate interest pending— action’s at the issue is instructive LeCompte —you’re the one filed Court: The appears Bankruptcy Court Nevada bar. claim. request summarily Resorts’s denied But was That’s correct. Mr. Goodenow: hurry to in its withdrawal conditional for a ob- objection to—Resorts’ before the filed against Lowen- claims all of Resorts’s settle was heard. plan in case jection to the considering in- “what estate schuss’s respect to ruled And before Id. at stake.” are terests plan was pension plan, that pension the fact adequately did consider the —there you remember exempt, that, ruling, time of its at the *7 wrong significant.... against the defen- litigating was been have trial the with gone ahead if it had dant bankruptcy be- estate Lowenschuss’s against going to hear I’m either Court: The exempted been Plan had the Pension cause of it going get rid Thursday I’mor bankruptcy did the Nor the estate.

from one, you which do which Now forever. that dismiss- the fact properly consider court want? proofs of claim ing Resorts’s Lowenschuss, Transcript of Reporter’s In re asserting preclude Resorts from would at 28-24 92-31474-JHT Hearing, No. BK-R if the Pen- Plan Pension against the interest 1993). asked (Bankr.D.Nev. When Oct. re- later were Order Exemption Plan sion if the Pension would be the outcome what again became Plan and the Pension versed part of Lowen- deemed Plan were later bankruptcy estate. part of Lowenschuss’s estate, the schuss’s bankruptcy court consider the did Nor just tough. That’s “That’s replied, judge prejudiced be would whether Lowenschuss Id. at tough.” to withdraw legally by permitting that conditionally. Furthermore, there is no evidence by legally prejudiced be would Lowenschuss hearing the following excerpt from proofs of claim with- of Resorts’s dismissal that the conclusion transcript supports most, has At Lowenschuss prejudice. out with- the conditional denied by expending time inconvenienced been addressing any of Resorts’s without drawal we the trial and preparing resources finding that Lowen- arguments de- of inconvenience “[t]he held by a con- legally prejudiced schuss fact or the lawsuit fending another dismissal: ditional already begun defendant has prepara- ¶ trial Plan Reorganization 5D. The Order prejudice.” tions Hyde does constitute & confirming the Plan elaborated: Drath, 24 F.3d at 1169. We also note that Entry of this Order shall constitute a re- the inconvenience Lowenschuss has suffered hens, levies, lease of freezes, attach- by is lessened the fact that Lowenschuss’s garnishments ments and against Debtor, preparation trial likely will be relevant individually trustee, or as held or claimed defending the Jersey New action.5 by to be Beverly Selniek, held In light of foregoing, International, we Inc., conclude that anyone else, or or is- the Nevada Bankruptcy Court by committed a sued by any Court or court, other judgment clear error in denying Resorts’s and collections sought by Beverly Selniek request for conditional withdrawal. We any reason of judgment, any or for affirm therefore reason, district court’s reversal other against Debtor, the Fred of that LeCompte, denial. See F.2d at Lowenschuss Plan, Associates Pension Fred Associates, Lowenschuss a profes- corporation, sional the Debtor’s children B. THE BANKRUPTCY COURT ERRED ..., as as well all trusts and custodian IN CONFIRMING A REORGANIZA- managed accounts by Debtor. TION PLAN WHICH RELEASES ¶4. Confirmation Order CLAIMS AGAINST NON-DEBTORS Primarily relying on other prece- circuits’ The district court vacated the Global dent, argues the Global Provision, holding that bankrupt Release Provision appropriate. We dis- cy court lacked power approve agree. provision which released claims non- debtors. Whether court has pow court lacks the power release claims a non- er to plans confirm reorganization which question debtor ais of law which we review do not comply with applicable provisions of de novo. See Miguel Sousa v. re United Code. U.S.C. Trustee), States Cir. 1129(a)(1). § Pursuant 11 U.S.C. 1994). 524(a), a discharge Chapter under 11 re leases the debtor personal from liability for Reorganization Plan any not, debts. Section 524 however, does the following provision contained provide for the release parties of third from broadly released debtor and connected liability; 524(e) contrary, § specifically persons entities, including the Pension states “discharge of a debt of the debtor Plan, from all claims: does not liability affect the any other Global releases given Debtor, will be on, entity or the property entity other Debtor’s children ... Fred Lowenschuss *8 for, 524(e). such 11 § debt.” U.S.C. Associates, professional corporation, Fred Lowenschuss Associates Pension held, This repeatedly court has Plan, as well as releasing 524(e) of all liens exception, § precludes bankrupt- trusts, accounts, pen- custodian cy courts from discharging the liabilities of sion plan, Fred Lowenschuss Hardwoods, Associates non-debtors. American v. Inc. and satisfying of all outstanding judg- (In Deutsche Corp. Credit re American ments, executions, and Hardwoods, Inc.), levies 621, (9th 885 F.2d 626 aforementioned person or entity Cir.1989); Royal, 1426, v. Underhill 769 F.2d with (9th connected them. Cir.1985); 1432 Commercial Wholesal- 5. Lowenschuss priate. maintains that it would be unfair See Kern v. TXO Corp., Production 738 to allow Resorts to days withdraw its claim be- 968, (8th Cir.1984) ("The F.2d 972 long rule has fore the scheduled expended trial after he had prevailed equity both law in and plaintiff that a large possible money sum of time preparation. in A may prejudice only by dismiss case without this, however, remedy for not for the is payment costs_”) (quoting of the Home Own district court to dismiss Resorts's with claim 314, Corp. Huffman, ers’ Loan v. 134 F.2d 317 permit but for it to withdrawal without (8th 1943)). Cir. prejudice and attorney’s appro- award if fees

1402 Fourth Cir- of the indicating approval our Corp., 172 ers, Commercial Investors Inc. v. Cir.1949); ignores (9th also Sun 800, approach. see Lowenschuss cuit’s 801 F.2d Corp. Hardwoods, World v. Sun Newspapers, Inc. Valley language of American clear Inc.), 171 Newspapers, (In Valley re Sun adopt the expressly we declined where 1994) (9th (holding BAP 71, 77 Cir. B.R. Robins; we AH. in In re forth approach set to re proposed plans which reorganization dictum, In re stated, adopted if we “[e]ven in 524(e) § violated guarantors non-debtor lease ..., not dictate Co. AH. Robins unconfirmable); Seaport therefore were Hardwoods, 885 American different result.” Warehouse, Park Rohnert Inc. v. Automotive at 626.6 F.2d (In Auto Parts, Park re Rohnert Inc. Auto (9th 610, Inc.), Cir. Parts, 614-17 113 B.R. Release the Global Accordingly, because 1990) plan reorganization (finding that a BAP 524(e) of the Bank- contrary §to is Provision pro from enjoined creditors provision court’s Code, the district we affirm ruptcy 524(e)); § violated ceeding against co-debtors Provi- vacating the Global decision (Bankr. 680, Keller, 686-87 157 B.R. In re sion. E.D.Wash.1993) a reor (refusing to confirm a creditor compelled plan that ganization proper non-debtor’s against a

release liens JUR- COURT’S THE BANKRUPTCY C. ty). RESORTS’S ISDICTION OVER Hardwoods, 625- F.2d at 885 THE PENSION In American AGAINST CLAIM argument— rejected the 26, explicitly we PLAN today by Lowenschuss advanced —that has waived Finally, Lowenschuss upon the powers bestowed equitable general 105(a) per- of whether § of the issue by consideration 11 U.S.C. bankruptcy court discharge juris bankruptcy court to retained improperly mit the Noting that “sec- of non-debtors. liabilities litigation of Resorts’s future diction over inconsistent relief not authorize tion 105 does Low Plan because against the Pension claim law,” “the we concluded specific more in issue either argue failed enschuss displace the 524 provisions section specific An not issue reply his brief. opening or his 105 to under powers section equitable brief, in although mentioned in a discussed [against a non- permanent relief order the Issues, to be is deemed the Statement Id. at 625- by sought [the debtor].” debtor] Inc., Indus., 797 v. Fairchild waived. Miller Cir.1986) (“The (9th F.2d 738 in essence, argues ordinarily matters consider Appeals will an ex recognized we Hardwoods American dis specifically and appeal that are not on 524(e)’s discharg prohibition ception to brief.”) opening tinctly argued appellant’s in urges us ing the liabilities non-debtors omitted); v. (citation Simpson Un see also Low- exception applies here. find Cir.) 2 Co., n. 900 411 F.2d ion Oil discussion, in dictum looks to our enschuss (issues appellant’s Statement referred 626-27, Hardwoods, F.2d 885 at American but of Error Specifications Case and of the in Menard- decision Circuit’s the Fourth to be deemed in the briefs not discussed Co.), Robins Mabey re A.H. v. Sanford abandoned), grounds 396 rev’d on other denied, (4th Cir.), 493 U.S. cert. 694 (1969). L.Ed.2d (1989), S.Ct. as U.S. 959, 110 L.Ed.2d 362 S.Ct. *9 apply asbestos designed to in specifically Bankruptcy rule Code to recent amendment 6. A 524(e) only, a trust mechanism § does not where there is that cases conclusion our buttresses permit things, among that it prove, claims other to release courts can the debtor Reform subject claims. likely non-debtors. future asbestos to is to 524(g) That § to the Code. added 524(g)(2)(B). § Act 1994 See 11 U.S.C. cases, if a series asbestos provides that section authority explicit to provided Congress That met, injunction is- conditions are of limited injunctions in favor to bankruptcy courts issue plan reorganization connection with sued in may preclude extremely class of limited parties in an the third parties. litigation third 524(e) § de- that the conclusion cases reinforces 524(g) it make requirements of The numerous non-asbestos, other, cases. authority in nies such a narrow constitutes subsection clear that III. thought might turn out to be a useless act.1 If thought Resorts that withdrawal of Therefore, we AFFIRM the district court’s its claim special without conditions it ruling reversing the bankruptcy court’s re- burdensome, demanded would be too it could fusal to allow Resorts to withdraw its claims proceeded with the case on the prejudice, and we merits. AFFIRM the dis- See Lau v. Dist., trict decision to Glendora vacate Global School Unified (9th Cir.1986) 792 F.2d Provision. (per 930-31 cu order); riam see also Gravatt v. Columbia AFFIRMED. Univ., (2nd Cir.1988). FERNANDEZ, Judge, Circuit concurring Again, Resorts did not simply want to dissenting: obtain voluntary dismissal, which was de I concur with all part but II.A of the nied to it. Hyde Baker, & Drath v. Cf. majority opinion, but dissent as to part. Cir.1994). F.3d It wanted a all, First it important say is to what this voluntary prejudice dismissal with and with a case is not. This is not a case party where a guarantee stay that it could fray at the sought to obtain preju a dismissal without view, my same time. In it was not entitled dice and was then either denied that outright to It, that and still is not. like others who subjected to intolerable terms and condi actions, dismiss their simply had to abide the tions. Far from it. Resorts asked that the vicissitudes of the future. Perhaps it would case be dismissed with but asked return, want perhaps not. Perhaps it special terms and conditions that would return, would be able to perhaps not. It was bind court allowing Re not entitled to an advance declaration that sorts to back very come into this case at would allow it to continue participating in the some future time. It also wanted a condition bankruptcy proceedings and that would re permit that would it party-in- remain quire the bankruptcy court to conduct all though interest even its claim had been dis further proceedings eye with an possi on the missed at its own behest. It wanted to re bility that Resorts would later demand a trial tain all rights party of the of a to the case question. the issue in avoiding necessity while of a trial. In words, other Resorts claims that it should be fine, might Resorts permit- have been allowed tell the court if and ted to leave hope this case and to when that permitted adjudicate court is procedural in, could find a way if it back the basic in the reorgani issue Lowensehuss necessary. found that per- Resorts was not zation: did Mr. Lowensehuss himself commit mitted to how dictate court upon fraud Resorts either for his own benefit case, calendar, was to handle the its or for else’s? someone possible request by later return said that try issue, time had come to the case. but disagreed. Resorts wanted to Therefore, decide when and pursue where it respectfully I dissent as to Part assertion that Lowensehuss committed a II.A.

wrong, but it never for one moment es

chewed pursuit. It to control wanted

bankruptcy court’s calendar. course,

Of the bankruptcy court did not

require Resorts to its claim with withdraw

prejudice after merely Resorts had made a

voluntary court, withdrawal motion. That at times, afforded right go Resorts the claim,

forward though with its even *10 premise. 1. I am By any dubious about Resorts's adjudication Plan would not be bound account, Lowensehuss, alleged wrongdoer, engaged he had committed fraud when he in the trustee, administrator, was the and sole benefi- redemption on its transaction I doubt it. behalf? ciary of Pension Plan. Could it be that the

Case Details

Case Name: In Re Fred Lowenschuss, Debtor. Resorts International, Inc. v. Fred Lowenschuss
Court Name: Court of Appeals for the Ninth Circuit
Date Published: Oct 10, 1995
Citation: 67 F.3d 1394
Docket Number: 94-16287
Court Abbreviation: 9th Cir.
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