Opinion
BK APPEAL NO. 2, Case No. 06cv342, [Bankruptcy Case No: 00-9608-JM7].
April 11, 2006
SCUDI JOHNSON, LLP Morgan J.C. Scudi (#147942) J. Ray Ayers (#217706) San Diego, CA, Attorneys for Third Parties, SAN VICENTE CAMALU, S.P.R. de R.I., SALVADOR GARCIA GUTIERREZ, and SALVADOR GARCIA VALDEZ.
LAW OFFICE OF BRADLEY L. JACOBS Bradley L. Jacobs Attorney for C.T. Produce, Inc. and First United, Inc.
STIPULATION FOR DISMISSAL OF APPEAL FROM BANKRUPTCY COURT ORDER
On February 14, 2006, SALVADOR GARCIA GUTIERREZ and SALVADOR GARCIA VALDEZ, Appellants, filed a Notice of Appeal with this Court, appealing an order of the bankruptcy court (Case No. 00-9608-JM7). Said appeal was from an order of the bankruptcy court regarding abandonment of certain claims of debtor C.T. Produce, Inc. (C.T. Produce") to the debtor and its majority shareholder, First United, Inc. ("First United"), during the course of a lengthy bankruptcy proceeding.
In 2004, First United and C.T. Produce filed a lawsuit in San Diego Superior Court (Case No. GIC 829467) against Appellants and two other parties, alleging various causes of action, which were allegedly abandoned to them by order of the bankruptcy court and a related settlement agreement. The state court initially ruled that First United and C.T. Produce's lacked standing to bring those claims.
Upon request of First United and C.T. Produce's counsel, the state court referred to the parties to the bankruptcy court overseeing C.T. Produce's pending Chapter 7 liquidation for a clarification regarding abandonment of the claims at issue and the scope any such abandonment. First United and C.T. Produce contended that, pursuant to a prior order of the bankruptcy court, all claims alleged in the state court action were abandoned back to the debtor, giving it standing to pursue the state court action.
The bankruptcy court then issued an order purporting to clarify its prior order regarding abandonment of the claims at issue. It is that order which Salvador Garcia Valdez and Salvador Garcia Gutierrez have appealed to this Court, asserting that there was no abandonment of claims against them during the course of C.T. Produce's bankruptcy, and that the bankruptcy court's order purporting to clarify a prior abandonment of claims against them is erroneous as a matter of law.
All parties to the underlying state court action have settled the claims raised by that lawsuit, and that action has been dismissed with prejudice. The present appeal is thereby rendered moot.
For good cause shown and upon the agreement of Appellants and Appellees, the parties hereby stipulate to a dismissal of the above referenced appeal, with each party bearing its own costs and fees, pursuant to Rule 42 of the Federal Rules of Appellate Procedure.
IT IS SO STIPULATED.
ORDER
The Court, having considered the foregoing joint stipulation, and finding good cause for the same, approves the parties' stipulation and proposed dismissal of above referenced appeal on the terms stated. The present appeal from the court's order in bankruptcy Case No. 00-9608-JM7, pending as Case No. 06cv342, is hereby dismissed.
IT IS SO ORDERED.