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 Re SEA SO N S PA RTN ERS LLC, D e b to r ., ________________________________, M L - C F C 2006- 3 S E A S O N S , L L C , a c t i ng b y a n d th r o u g h its s p e c ia l s e rv ic e s a n d s o le m e m b e r ; e t a l., A p p el l an t s, v. SEA SO N S PA RTN ERS LLC, A pp el l ee . N o. 11- 16999 D . C. N o . 4 : 1 0 - c v - 0 0 7 7 2 - D CB ME MOR AN DU M *

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# FI LED JU N 25 2013 M OLLY C. DW Y ER, CLERK U . S. C O U R T OF APPE ALSTh e H o n o r ab l e La w r e n c e L. Pi e r s o l , Se n i o rD i s tr i c tJ u d g e f o rth e U . S. ** D i s tr i c tC our tf

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2 B e f or e : O ’ S C A N N L A I N a nd H U R W I T Z , C i r c ui tJ udge s , a nd P I E R S O L , S e ni or D i stri ctJudg e. ** M L -C F C 20 06 -3 S ea sons, L L C (T orchl i gh t ) app ea l s f rom a d is tri ctcourt d e c i s i o n a f

f i rmi n g aCh ap t e r1 1 r e o r g a n i z a t i o n p l a n f o rSe a s o n s Par tn e r s , LL C ( S e a s o n s ) . W e g r a n t S e a s o n s ’ m o tio n to d is m is s th e ap p e a l a s e q u itab ly m o o t.

1. In 20 06 , S ea sons re ce i ved a $2 0. 5 m i l l i on se cure d l oan from T orchl i g h t’ s pr e de c e s s ort o c ons truc t a T uc s on apa r tm e ntc om pl e x. S e a s ons f i l e d f orC hapt e r11 r e o r g a n i z a t i o n i n 2 0 0 9 . A f t e rSe a s o n s f

i l e d ar e o r g a n i z a t i o n p l a n , To r c h l i ght r e que s t e d ahe ari ng t o de t e rm i ne the va l ue of the r e a l e s t a t e s ubj e c tt o i t s l i e n. T orchl i gh tthen m ade a n 1 1 U . S . C . § 1 11 1(b ) elec t i on , w hi ch re qu i re d thatthe pl an tre at T orchl i gh t ’ s e nt i re cl ai m as se cure d. T he bank rupt cycourthel d an evi dent i ary h e a r in g a n d d e te rm in e d th a t th e s e c u r e d p r o p e r ty w a s w o r th $ 1 1 .6 m illio n . T or c hl i ghtm ove d fo r r e c ons i de r a t i on, c i t i ng apr oj e c t i on by S e a s ons tha tthe c om pl e x w ou l d en

j oy i nc r e a s e d r e ve nue s i n the y e a rf ol l ow i ng c onf

i rm a t i on. T he ba nkrupt c y c our tde ni e d the m ot i on and confi rm ed the pl an. O n app ea l t o the di stri ct c o u r t, T o r c h lig h t a r g u e d th a t th e b a n k ru p tc y c o u r t e rr e d i n d e c lin in g to r e e v a lu a te3

S ea sons’ prop erty bef

ore confi rm at i on and by tre at i ng ce rt ai n pre -pet i t i on defaul t s a s c u r e d . T h e d is tr ic t c o u r t a f f irm e d . 2. W hi l e the appe a l w a s pe ndi ng, thi s c our tde c i de d I n r e T hor pe I ns ulat i on C o. , 677 F . 3d 869 ( 9th C i r . 2012) . S e a s ons f i l e d am ot i on t o di s m i s s , c i t i ng I n r e T hor pe , a n d a r g u in g th a t th e ap p e a l w a s e q u itab ly m o o t.

3 . T o r c h lig h t d id n o t s e e k a s ta y p e n d in g ap p e a l. T h a t f a ilu r e w e ig h s h e a v ily in fav o r o f fi n d i n g th e ap p eal eq u i t ab l y m o o t . I d . at 8 81 -82. E ven i f ast ayhad b ee n soug ht , w e w ou l d “ nextdet erm i ne w hether sub st ant i al consum m at i on of the pl an has occurre d. ” I

d. at88 2. T orchl i gh t , h o w ev er , do es no tcont es tthatthe pl an has been subst ant i al l y c on sum m at ed . U nd er T hor pe , w e a ls o c o n s i d e rw h e th e rm o d if ic a tio n o f

th e p la n w o u ld n e g a tiv e l y a f

f e c t th e in te r e s ts o f

p a r tie s n o t b e f

o r e th e c o u r t. I

d. a t882- 83. A ny m od i fi ca t i on of the pl an here w ou l d pl ai nl y af fe ct the i nt er es t s of the i nv es t or thathas in f u s e d $ 2 .5 m illio n in to th e ap a r tm e n t v e n tu r e in r e lia n c e o n th e c o n f irm e d p la n . F in a lly , w e lo o kto w h e th e rth e b a n k ru p tc y c o u r t c o u ld f a s h io n a n e q u itab le r e m e d y o n r e m a n d . I

d. a t 8 8 3 . T o r c h lig h t a r g u e s th a t th e r e o r g a n iz a tio n p la n c o u ld si m pl y be a dj ust ed t o al l evi at e i t s c on ce rns. B utthe i nv es t or w ou l d n otbe ob l i gat ed4

t o a gr e e t o a ny m odi f

i c a t i on o f the pl a n. E ve n a s s um i ng tha tthe i nve s t or ’ s e xi s t i ng c o n tr ib u tio n c o u ld b e r e f u n d e d , a n u n r a v e lin g o f th e p la n w o u ld b e d e tr im e n ta l to o th e rc r e d ito r s a n d lik e ly f a ta l to S e a s o n s ’ r e o r g a n iz a tio n . 4. T or c hl i ght ’ s f

a i l ur e t o s e e k as t a y ha s l e d t o t h e p re c i s e s i tua t i on the doc tr i ne of equi t abl e m oo tness se eks t o av o id : th e d ebt or, other c re di t ors, and an add i t i on al i nve s t or ha ve a c t e d i n r e l i a nc e on the pl a n, a nd the r e i s no e qui t abl e w a y t o r e turn the p art i es t o th ei r o ri g i n al p o si t i o n s. W e g ran tth e m o t i o n t o d i sm i ss.

D I SM I SSED