Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-ca10-89-01361/USCOURTS-ca10-89-01361-0/pdf.json

Nature of Suit Code: 422
Nature of Suit: Bankruptcy Appeals Rule 28 USC 158
Cause of Action: 

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., . '" FI LED 

UNITED STATES COURT OF APPEALS 

TENTH CIRCUIT 

United States Court of Appeals 

·r enth Circuit 

JUN 1 1990 

&OBERT L. HOECKER 

Clerk KAISER STEEL CORPORATION, KAISER 

COAL CORPORATION, 

Plaintiffs-Appellees, 

v. 

JOSEPH A. FRATES; CHARLES S. HOLMES; 

ROBERT E. MERRICK; STAN P. DOYLE; J. 

ANTHONY FRATES; P. PETER PRUDDEN, III; 

STEPHEN I. FRATES; EQUIVEST ASSOCIATES; 

THE ESTATE OF HOWARD J. SAMUELS; DOYLE 

& HOLMES; EQUIVEST MANAGEMENT AND 

FINANCIAL SERVICES, LTD.; JOHN L. 

FARRELL, JR.; and ASSET MANAGEMENT, 

INC. I 

Defendants-Appellants, 

) 

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CLIFFORD V. BROKAW, III; DR. EUSTACE H. ) 

WINN, JR.; WILLIAM R. GOULD; HOWARD P. ) 

ALLEN; STEPHEN A. GIRARD; RICHARD N. ) 

GARY; LLOYD G. HANSEN; CHARLES H. BLACK;) 

MILES B. YEAGLEY; DONALDSON, LUFKIN & ) 

JENRETTE SECURITIES CORPORATION; and ) 

DEAN WITTER REYNOLDS, INC., ) 

Defendants-Appellees. 

) 

) 

ORDER AND JUDGMENT* 

No. 89-1361 

(D.C. No. 87 B 01552 E) 

(D. Colo.) 

Before SEYMOUR and TACHA, Circuit Judges, and BRATTON,** District 

Judge. 

* This order and judgment has no precedential value and shall 

not be cited, or used by any court within the Tenth Circuit, 

except for purposes of establishing the doctrines of the law of 

the case, res judicata, or collateral estoppel. 10th Cir. R. 

36.3. 

** The Honorable Howard C. Bratton, District Judge, United 

States District Court for the District of New Mexico, sitting by 

designation. 

Appellate Case: 89-1361 Document: 010110036139 Date Filed: 06/01/1990 Page: 1 
This is an appeal from the order of the district court 

affirming an order of the bankruptcy court approving a number of 

settlement agreements. Appellants, a group of defendants in an 

adversary proceeding spawned by the Kaiser Steel Corporation 

bankruptcy, contend that the bankruptcy court exceeded its 

jurisdiction when it entered findings that the settlement was 

taken in good faith and represented approximately the proportional 

liability of the settling parties. Appellants also contend that 

the bankruptcy court's actions are unsupported by competent 

evidence. We affirm. 

The appellants' contention that the bankruptcy court exceeded 

its jurisdiction in entering the settlement orders is meritless. 

We have reviewed the allegedly offensive language and find it well 

within the limits of the bankruptcy court's discretion. It is not 

impermissible for the bankruptcy court to consider the proportion 

of each parties' settlement relative to the claims against that 

party; failure to do so might result in compromising the best 

interests of the estate. Nor is it impermissible for the 

bankruptcy court to consider the good faith of the parties. The 

absence of good faith may well indicate an inequitable settlement. 

The bankruptcy court has not exceeded its jurisdiction or abused 

its discretion in entering the settlement orders. 

We agree with the district court that the timely evidence 

presented to the bankruptcy court and the testimony of Mr. Larson 

is competent and more than adequate to support the settlements in 

this case. 

The judgment of the district court is AFFIRMED. 

2 

ENTERED FOR THE COURT 

Deanell Reece Tacha 

Circuit Judge 

Appellate Case: 89-1361 Document: 010110036139 Date Filed: 06/01/1990 Page: 2