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 a nd 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 th e Ma tt e ro f: WI R E C O MM W I R E L E S S , I N C ., D ebt or. N EW CI N G U LA R W I RELESS S E R V I C E S , I N C ., A p p e lla n t, v. RI CHARD M CC ORM I CK; SHI RL EY MC C OR MI C K; T I MOT HY MC C OR MI C K; R E NE E MC C OR MI C K, A p p el l ees, a nd M I CHAEL F . BURKART, T rust ee . N o. 08- 17061 D . C. N o . 2 : 0 7 - c v - 0 2 2 1 3 - M CE ME MOR AN DU M *

A pp ea l fr om the U ni t ed S t at es D i stri ctC ou rt f o rth e E a s te rn D is tr ic t o f C a lif o rn ia M orr i s on C . E ngl a nd, D i s tr i c tJ udge , P r e s i di ng 

# FI LED APR05 2 010 M OLLY C. DW Y ER, CLERK U . S. C O U R T OF APPE ALS2 A r gue d a nd S ubm i tt e d N ove m be r4, 2009 S a n F r a n c is c o , C a lif

o rn ia B efo re: B . F L E T C H E R , C A N B Y , an d G R A B E R , C i rcu i tJu d g es. I n O c to b e r2 0 0 7 , th e B a n k ru p tc y C o u r t f o rth e E a s te rn D is tr ic t o f C a lif o rn ia i s s ue d a n or de rgr a nt i ng appr ova l of ac om pr om i s e be tw e e n the T rus t e e f or n o w -d ef u n ct W ire C o m m W ireles s, In c. (“W ire C o m m ”) , an d W ire C o m m ’s pri nci pal shar ehol ders T i m othy, R enee , R i char d, and S hi rl eyM cC orm i ck (“ M cC o rm i ck s”). A s p arto f th e co m p ro m i se, th e T ru st ee ag reed t o d i sm i ss a st at e- courtac t i on N ew C i ng ul arW i re l es s S ervi ce s, Inc. (“ N ew C i ng ul ar ”) had br oughta ga i ns tthe M c C orm i c ks , i n w hi c h the s t a t e c our tha d s ubs t i tut e d the T rust ee as pl ai nt i ff

. N ew C i ng ul arappeal ed the bank rupt cycourt ’ s order appr ovi ng the c om pr om i s e t o the D i s tr i c tC our tf orthe E a s t e rn D i s tr i c tof C al i forni a, ar gu i ng thatthe bank rupt cycourthad fai l ed t o p rovi de adequat e f ac tual supp ortfor i t s app roval of the com prom i se . T he di stri ctcourtaf fi rm ed. N ew C in g u la rn o w ap p e a ls . B e c a us e the or de ra ti s s ue de t e rm i ne d a nd a f f e c t e d the s ubs t a nt i ve r i ght s of th e p a r tie s , it w a s , f

o rp u rp o s e s o f

ap p e a l, af

in a l o r d e r . J

.P . Mo r g a n I n v . M g m t., I n c . v . U .S. T r . ( I n r e M a r te c h U S A , I n c .) , 18 8 B . R . 84 7, 84 9 (B . A . P . 9th C i r. 1 9 9 5 ) . W e h a v e ju r is d ic tio n to h e a ra n ap p e a l f r o m af in a l o r d e rp u r s u a n t to3

28 U . S . C . § 1 58 (d). In an appeal fr om an order af fi rm i ng the deci si on of a ba nkrupt c y c our t , “ ourr ol e i s e s s e nt i a l l y the s a m e a s tha tof the di s tr i c tc our t , a nd w e a r e , in e s s e n c e , r e v ie w in g th e f in a l o r d e ro f

th e b a n k ru p tc y c o u r t.” M art i n v. Ka n e ( I n r e A & CP r o

p s .) , 784 F . 2d 1377, 1380 ( 9th C i r . 1986) . “ W e r e vi e w the b a n k ru p tc y c o u r t’s f

in d in g s o f

f a c t u n d e rth e ‘c le a r ly e rr o n e o u s ’ s ta n d a r d a n d its c o n c l u s i o n s o f

l a w de no vo . ” I

d. A bs e ntac l e a rabus e of di s c r e t i on, w e w i l l not d is tu rb a n o r d e rg r a n tin g o rd e n y in g ap p r o v a l o f ac o m p r o m is e . U

ni ted Stat es v. A la s ka N a t’ l B a n k o f N . ( I n r e W a ls h C o n s tr ., I

n c .) , 66 9 F . 2d 13 25 , 13 28 (9th C i r. 1 9 8 2 ) . In consi deri ng the prop osed com prom i se , the bank rupt cycourtfoun d that on e f ac t or w ei gh ed m ostheavi l y i n favor of grant i ng approv al , nam el y, thatN ew C i ng ul arso l ac ked con fi dence i n the supp osedl y m er i t ori ou s s t at e- courtcl ai m s that i tr e pe a t e dl y de c l i ne d of f e r s t o pur c ha s e the a c t i on a taone - dol l a rpr e m i um . T he on l y e xp l anat i on N ew C i ng ul argi ves f or i t s obv i ou s l ac k o f i nt er es ti s i t s “ bel i e[ f] [that ] the bank rupt cycourtshou l d, and w ou l d, re j ec tthe com prom i se . ” A ppe l l a nt ’ s O p. B r . 40. U nf or tuna t e l y f

orN e w C i ngul a r , thi s e xpl a na t i on o v e r lo o k s th e r e a lity th a t th e p u rp o s e o f ac o m p r o m is e is , a m o n g o th e rth in g s , “to a voi d the e xpe ns e s a nd bur de ns a s s oc i a t e d w i th l i t i ga t i ng s ha rpl y c ont e s t e d a nd du bi ou s c l ai m s. ” In re A &CP ro p s. , 7 8 4 F .2 d a t 1 3 8 0

– 8 1 . W e th in k it s a f e to4

as sum e thatN ew C i ng ul ar , l i ke the T rust ee , re garded the st at e- courtcl ai m s a s “s h a rp ly c o n te s te d a n d d u b io u s ” a n d , th e r e f o r e , le s s v a lu ab le to th e e s ta te , in m o n e ta ry te rm s , th a n th e p r o p o s e d c o m p r o m is e . T he foremo stob l i gat i on of a bankrup t cytrust ee i s t o “ proceed i n sett l i ng [a n e s ta te ’s ] a c c o u n ts o n w h a te v e rg r o u n d s h e , in h is in f o rm e d d is c r e tio n , b e lie v e s w ill netthe m axi m um re turn for the cr edi t ors. ” L eB lanc v . Sal e m ( I n r e M ai lm an Ste am C ar

pe t C l e ani ng C or

p. ), 21 2 F . 3d 63 2, 63 5 (1stC i r. 20 00 ). In vi ew of that ob l i gat i on , a bankrup t cycourtenj oys gre atl at i tud e i n app rovi ng a propo se d c o m p r o m is e , a n d af

ru itf u l s e ttle m e n t is a lw a y s f a v o r e d o v e rn e e d le s s litig a tio n . In re A &CP ro

p s. , 78 4 F . 2d at13 81 –8 2. H er e, the re cord show s thatthe bank rupt cy c our t , i n j udgi ng the m e r i t s of the pr opos e d c om pr om i s e , c a r e f ul l y c ons i de r e d the r e q u is ite f

a c to r s , s e e id. a t 1 3 8 1 , a n d p r o v id e d a m p le f a c tu a l s u p p o r t f

o rits c onc l us i ons . “ [ A ] s l ong a s the ba nkrupt c y c our ta m pl y c ons i de r e d the va r i ous f a c t or s tha tde t e rm i ne d the r e a s onabl e ne s s of the c om pr om i s e , the c our t ’ s de c i s i on m ustbe af

fi rm ed. ” Id . T h e o r d e ro f th e b a n k ru p tc y c o u r t is , th e r e f o r e , A FFI R M ED