T hi s di s pos i t i on i s notappr opr i a t e f orpubl i c a t i on and i s notpr e c e de nt * e xc e pta s pr ovi de d by 9th C i r . R . 36- 3. NOT F OR P UB L I CAT I ON UN I TE D STATE S C OU RT OF APPE ALS FOR T HE NI NTH CI RC UI T I n r e : R OD E O C AN ON DE VE L OP ME NT C OR P OR AT I ON , D ebt or, B E VE R L Y R OD E O D E VE L OP ME NT C OR P OR AT I ON ; F R E D Y AS S I AN , A p p el l an t s, v. R OB E R T L . GO OD R I C H; WI L L I AM W ARNI CK; AN N W ARNI CK; J I LL WARNI C K; AL L AN WARNI C K; DA VI D P E R R Y; DA NN Y P E R R Y, A p p el l ees. N o. 07- 56718 B A P N o. C C - 07- 01088- K M oD ME MOR AN DU M *

A p p e a l f r o m th e N in th C ir c u it B ankrup t cyA pp el l at e P anel K l e i n, M ont a l i , a nd D unn, B a nkrupt c y J udge s , P r e s i di ng I n th e Ma tt e ro f: R OD E O C AN ON DE VE L OP ME NT C OR P OR AT I ON , N o. 08- 56760 D . C. N o . 2 : 0 7 - c v - 0 1 5 1 0 - G PS



# FI LED AU G 19 2010 M OLLY C. DW Y ER, CLERK U . S. C O U R T OF APPE ALS2

D ebt or, B E VE R L Y R OD E O D E VE L OP ME NT C O R P O R A T I O N , aC a lif o rn ia c o rp o r a tio n , 9 6 1 5 B R I G H T O N W A Y , a C a l i f orni al i m i t e d l i abi l i ty pa rtne r s hi p; F R E D Y AS S I AN , A p p el l an t s, v. B I J A N C H A D O R C H I , an in d iv id u a l; F E R E S H T E H C H A D O R C H I, an i n d i v i d u a l ; T HE C HA DO R C HI L I VI NG TR UST, A p p el l ees. I n th e Ma tt e ro f: R OD E O C AN ON DE VE L OP ME NT C OR P OR AT I ON , D ebt or, B E VE R L Y R OD E O D E VE L OP ME NT C O R P O R A T I O N , aC a lif o rn ia c orpor a t i on, A p p el l an t s, v. BI J AN CHAD ORCHI ; FE RE SHTE H C HA DO R C HI ; C HA DO R C HI L I VI NG N o. 08- 56762 D . C. N o . 2 : 0 7 - c v - 0 1 5 1 5 - G PS3

TR UST, A p p el l ees. I n th e Ma tt e ro f: R OD E O C AN ON DE VE L OP ME NT C OR P OR AT I ON , D ebt or, FR ED YA SS I AN ; BE VERL Y ROD EO D E V E L O P M E N T C O R P O R A T I O N , a C a l i f o rn i ac o rp o r a t i o n ; 9 6 1 5 B R I GH T ON W A Y , aC a lif

o rn ialim ite d liab ility pa rtne r s hi p, A p p el l an t s, v. B I J A N C H A D O R C H I , an in d iv id u a l; F E R E S H T E H C H A D O R C H I, an i n d i v i d u a l ; T HE C HA DO R C HI L I VI NG TR UST, A p p el l ees. N o. 08- 56773 D . C. N o . 2 : 0 7 - c v - 0 8 1 0 5 - G PS

I n th e Ma tt e ro f: R OD E O C AN ON DE VE L OP ME NT C OR P OR AT I ON , D ebt or, THE C HA DO RC HI LI VI NG TR UST; N o. 08- 56807 D . C. N o . 2 : 0 7 - c v - 0 4 8 3 3 - G PST he H onor abl e A l ge non L . M a rbl e y , U ni t e d S t a t e s D i s tr i c tJ udge f or ** the S outhe rn D i s tr i c tof O hi o, s i tt i ng by de s i gna t i on.

4 F E R E S HT E H C HA DO R C HI ; B I J AN C H A D O R C H I, A p p el l an t s, v. B E VE R L Y R OD E O D E VE L OP ME NT C OR P OR AT I ON ; F R E D Y AS S I AN , AK A Fr e d Ya s s i a n ; ROBE RT L. G O O D R IC H , T rust ee , A p p el l ees.

A pp ea l s f

rom the U ni t ed S t at es D i stri ctC ou rt f o rth e C e n tr a l D is tr ic t o f C a lif o rn ia G e or ge S c hi a ve l l i , D i s tr i c tJ udge , P r e s i di ng A r gue d a nd S ubm i tt e d J une 9, 2010 P a s a d e n a , C a lif

o rn ia B ef ore: G O O D W IN and R A W L IN S O N , C i rc ui tJudg es , and M A R B L E Y , D i stri ct Judg e. ** I n the s e c ons ol i da t e d appe a l s , A ppe l l a nt s B e ve r l y R ode o D e ve l opm e nt C o rp o r a tio n ( B e v e r ly R o d e o ) a n d F r e d Y a s s ia n ( Y a s s ia n , an d to g e th e rw ith B ever l y R od eo, the Y as si an P art i es ) c on t end thatthe bank rupt cycourterre d w hen i tdeni ed thei r var i ou s a tt em pt s t o setas i de, vaca t e, or ob t ai n com pensat i on for aRu l e 6 0 ( b ) i s ma d e ap p l i c ab l e t o b a n k ru p t c y p r o c e e d i n g s th r o u g h Fe d . R. 1 B a nkr . P r o. 9024. 5 fi n al sal e o rd er (S al e O rd er) en t ered b y th e b an k ru p t cy co u rti n 2 0 0 1 . O n cro ssap p e a l, A p p e lle e s a n d C r o s s - A p p e lla n ts B ija n C h a d o r c h i, F e r e s h te h C h a d o r c h i, and T he C hado rc hi L i vi ng T rust(the C hado rc hi P art i es ) a l l ege thatthe bank rupt cy c o u rt im p r o p e r ly d e n ie d th e irm o tio n f o ra tto rn e y s ’ f

e e s a n d c o s ts . 1 . T he di s tr i c tc ourtpr ope r l y a f f i rm e d the ba nkrupt c y c ourt ’ s or de rde ny i ng the Y a s s i a n P a rt i e s ’ F e d. R . C i v. P r o. 60( b) m ot i on, w hi c h w a s f i l e d f orthe 1 pu rpose of s ett i ng as i de or vacat i ng the S al e O rder . T he bank rupt cycourt ap p r o v e d th e s a le o f

th e p r o p e rty p u r s u a n t to 1 1 U .S .C . § 3 6 3 ( b ) ( 1 ) a n d ( f ) ( 4 ) . H a vi ng f a i l e d t o obt a i n as t a y of

the s a l e pe ndi ng appe a l , the s a l e c l os e d a nd the C h a d o r c h i P a rtie s o b ta in e d title to th e p r o p e rty f r e e a n d c le a ro f

a ll in te r e s ts . See E w e ll v . D ie b e r t (

I n r e E w e ll) , 95 8 F . 2d 27 6, 27 9 (9th C i r. 20 02 ).

2 . T he ba nkrupt c y c ourt ’ s c onc l us i on tha tf r aud on the c ourtw a s not es t abl i shed w as prop erbecause “ [t ] here i s s i m pl y no i nd i ca t i on of a f raud ul entpl an or sc hem e des i gn ed t o i m prop er l y i nfl uence the [bankrup t cycourt ] . . . ” A ba t t iv. C om m ’rof

Int . R ev . Serv . , 8 5 9 F .2 d 1 1 5 , 1 1 8 ( 9 th C ir . 1 9 8 8 ) . S im ila r ly , th e r e is6

nothi ng t o i ndi c a t e tha tthe ba nkrupt c y c ourtw a s a c tua l l y de c e i ve d by a ny f r au d u le n t m is r e p r e s e n ta tio n s , f a ls e s ta te m e n ts , o ro m is s io n s in au th o r iz in g th e s a le o f th e p ro p erty. 3 . T he ba nkrupt c y c ourtpr ope r l ygr a nt e d s um m a ry j udgm e ntt o the C ha dor c hi P a rt i e s i n the G oodr i c h A dve r s a ry pr oc e e di ng. A s di s c us s e d above , the Y a s s i a n P a rt i e s f

a i l e d t o pr ovi de e vi de nc e t o s ubs t a nt i a t e the i ra l l e ga t i ons of f r aud on the c ourt . T he ba nkrupt c y c ourts truc k a l l de pos i t i on t e s t i m ony s ubm i tt e d by the Y as si an P art i es , and there i s nothi ng t o sug gestthatthe bank rupt cycourt c o m m itte d a n ab u s e o f

d is c r e tio n in m a k in g its e v id e n tia ry ru lin g s . See J oh nson v. N e ils o n ( I n r e S la tkin ) , 5 2 5 F .3 d 8 0 5 , 8 1 1 ( 9 th C ir . 2 0 0 8 ) . 4 . T he ba nkrupt c y c ourtpr ope r l ydi s m i s s e d the c l a i m s a s s e rt e d by the Y a s s i a n P a rt i e s a ga i ns tthe C ha dor c hi P a rt i e s i n the Y a s s i a n A dve r s a ry pr oc e e di ng for f ai l ure t o st at e acl ai m up on w hi ch re l i ef coul d b e gra nt ed. T he Y as si an P art i es soug hta dec l ar at i on thatthe S al e O rderw as vo i d o r voi dabl e f or w antof subj ec t m a tte rju r is d ic tio n o rf

o rf r au d o n th e c o u rt. E v e n a s s u m in g c la im p r e c lu s io n d id n o t ap p ly , is s u e p r e c lu s io n d id . See Fra n kf o rt D i g i ta l Servs. , L td. v. Kist ler (In re R eyn o so ) , 477 F . 3d 1117, 1122 ( 9th C i r . 2007) . T he s e i s s ue s w e r e l i t i ga t e d,7

nece ss ar i l y dec i ded, and res ul t ed i n fi nal orders or j ud gm ent s a gai nstthe Y as si an P art i es i n the l i t i gat i on i nv ol vi ng the S al e A vo i dance M ot i on and G oo dri ch A d v e r s a ry p r o c e e d in g . Se e id . In the al t ernat i ve, the Y as si an P art i es soug hta dec l ar at i on det erm i ni ng that th e C h a d o r c h i P a rtie s h e ld n o th in g m o r e th a n b a r e le g a l title to th e p r o p e rty . H ow ever , i f the S al e O rderi s pre sum ed t o b e val i d, the bank rupt cycourtl ac ked j ur i s di c t i on t o de t e rm i ne r i ght s t o the pr ope rty be c aus e i tw a s no l onge rpr ope rty of th e e s ta te . Se e Mc Q uai d v . O w ne rs of N W 20 R e al Es tate ( I n r e Fe de r al

Shoppi ng W a y, I n c .) , 71 7 F . 2d 12 64 , 12 72 (9th C i r. 19 83 ). T here fore , the bank rupt cycourt di d note rri n c onc l udi ng tha tno de c l a r a t ory r e l i e f c oul d be gr a nt e d. B e c aus e w e c onc l ude tha tthe ba nkrupt c y c ourtpr ope r l y di s m i s s e d the Y as si an P art i es ’ al t ernat i ve cl ai m for r el i ef for f ai l ure t o st at e acl ai m up on w hi ch r e lie f c o u ld b e g r a n te d , w e a ls o c o n c lu d e th a t th e b a n k ru p tc y c o u rt d id n o t e rrin d e n y in g a s m o o t th e Y a s s ia n P a rtie s ’ p a rtia l m o tio n f o rs u m m a ry ju d g m e n t.

5. T he bank rupt cycourt ’ s deni al of the Y as si an P art i es ’ re qu es tfor app roval a nd pa y m e ntof

a n a dm i ni s tr a t i ve e xpe ns e c l a i m w a s c orr e c t . I n pa r a gr aph 18 of the S ett l em entD ea l T erm S heet(S ett l em ent ), the Y as si an P art i es expres sl y w ai ved the i rr i ghtt o a s s e rta ny know n a nd unknow n c l a i m s the y m a y ha ve ha d a ga i ns tthe8

est at e i n co n n ect i o n w i th th e p ro p erty. W e d o n o tco n si d er th e Y assi an P art i es’ a l l e ga t i ons tha tthe y a r e e nt i t l e d t o r e c ove ra dm i ni s tr a t i ve e xpe ns e s f r om a ny a c t i ons ori na c t i ons of

the c urr e nttrus t e e be c aus e the s e a r gum e nt s ha ve be e n m a de f o rth e f ir s t tim e o n ap p e a l. See H arden v. R oa dw ay P ackage System s, Inc. , 249 F . 3d 11 37 , 11 41 (9th C i r. 20 01 ).

6 . T he ba nkrupt c y c ourt ’ s de ni a l of the C ha dor c hi P a rt i e s ’ m ot i on f or a tt orne y s ’ f

e e s w a s pr ope r . T he C ha dor c hi P a rt i e s ’ r e l i a nc e on A da m v. D e Char on , 31 C a l . A pp. 4th 708 ( 1995) , i s m i s pl a c e d. T he de c i s i on i n A dam do es n o t s ta n d f

o rth e p r o p o s itio n th a t a n a c tio n f ile d in f e d e r a l c o u rt c a n b e d e e m e d to

“ a r i s e outof

” ac ontr a c tgove rne d by s t a t e l a w m e r e l y be c aus e the a c t i on w oul d not h a v e e x is te d “b u t f

o r ” th e c o n tr a c t. S im ila r ly , L af

ar ge C ons e i l

s E T E tude s , S. A . v . Kais e rC e m e nt & G y ps um C or p. , 791 F . 2d 1334 ( 9th C i r . 1986) , i s i nappos i t e . I n L af ar ge , w e a f f i rm e d a d is tr ic t c o u rt’s a w a r d o f a tto rn e y s ’ f

e e s to a n ap p e lle e w h o h a d s u c c e s s f u lly o p p o s e d aR u le 6 0 ( b ) m o tio n f ile d f o rth e p u rp o s e o f

v a c a tin g a n a rb itr a tio n a w a r d . Se e id. at13 39 -41. H ow ever , i n thi s c as e, un l i ke L af ar ge , th e Y assi an P art i es’ c l a i m s i n the G oodr i c h A dve r s a ry pr oc e e di ng w e r e notf i l e d f orthe purpos e of vaca t i ng an order or j ud gm entthathad b ee n ent er ed pu rs uantt o the t erm s of a9

pr ovi s i on i n the part i e s ’ unde r l y i ng c ontr a c t . T he r e f or e , w e c onc l ude tha tthe c l a i m s a s s e rt e d i n the G oodr i c h A dve r s a ry pr oc e e di ng di d not“ a r i s e outof ” the P u r c h a s e A g r e e m e n t. F i nal l y, because the C hado rc hi P art i es have no taddres se d the bank rupt cy court ’ s deni al of thei r r equestfor c ost s i n ei ther of thei r bri ef s, they have w ai ved th e r ig h t to c h a lle n g e th a t d e c is io n o n ap p e a l. Se e B la n fo rd v . Sa c r a m e n to C o u n ty , 40 6 F . 3d 11 10 , 11 14 n. 8 (9th C i r. 20 05 ). A FFI R M ED .