N O T FO R PUB L ICAT IO N UNITED STATES C OUR T OF APPEALS FOR THE NINTH C IR C UIT
In the M a tte r of: C OB ALIS C ORPOR ATION, De

btor, C OB ALIS C ORPOR

A TION a nd M ONTENEGR

EX, by R e y Olse n, Appe lla

nts,
v. YA GLOB AL INVESTM ENTS LP, Appe lle e . No. 13-57078 D.C . No. 8:13-c v-00269-JLS
M EM O R ANDUM *

Appe a l from

the Unite d

Sta t e s Distric t C ourt for the C e ntra l Distric t of C a lifornia Jose phine L. Staton, Distric t Judge , Pre siding Argue d a nd Subm itte d Fe brua

ry 9, 2016 Pa sa de n a , C a l ifornia 

# FIL ED FEB 23 2016 M OLLY C. DW Y ER, CLERK U
. S
. CO URT O F APPEALS

* This disposition is not a ppropria te for public a t ion a

nd is not pre c e de nt e xc e pt a s provide d

by 9th C ir. R . 36-3.B e fore : B E R Z ON, DAVIS ** , a

nd OW ENS, C irc uit Judge s. Appe lla nts C oba lis C orporat ion a nd M onte ne gre x a

ppe a l from

the distric t c ourt’ s dism issa l of the ir ba nkruptc y a ppe a l a s e quita

bly m oot. “ In e va luat ing a dism issa l on e quita

ble m ootne ss grounds, were vie w fa c tua l findings for c l e ar e rror and le ga l c onc lusions de novo.” J PMC C 2007-C 1 Grasslaw n Lodging, LLC

v . Transw e st Re sort Props., Inc . (In re Transw e st Re sort Props., Inc .) , 801 F.3d 1161, 1168 (9th C ir. 2015). As the pa rtie s a re fa m i lia r with the fa c ts, we do not re c ount the m he re . W e a ffirm
. This c ourt ha s se t out four c onside ra tions to de t e rm i ne whe the r an a ppe a l is
e quita bly m oot: (1) “ w he the r a

sta y wa s sought, for a

bse n t tha t a pa rty ha s not fully pursue d its rights” ; (2) “ whe the r substa n tia l c onsum

m a tion of thepla

n ha s oc c urre d” ; (3) “ t

he e ffe c t a

re m e dy m ay have on third pa

rtie s not be fore the c ourt” ; and (4) “ whe the r the ba

nkruptc y c ourt c an fa s hion e ffe c t ive an d e quita ble re lie f without c om

ple te ly knoc king the props out from unde r the pla n a nd the re by
c re ating a n unc ontrolla

ble situa tion for the ba

nkruptc y c ourt.” Motor Ve hic le C as. C o. v . Thorpe

Insulation C

o. (In reThorpe

Insulation C

o.) , 677 F.3d 869, 881 (9th

** The Honora

ble Andre M . Dav is, Se nior C irc uit Judgefor the U.S. C ourt of Appe a ls for the Fourth C irc uit, sitting by de signa tion. 2C ir. 2012); se e also Re v Op Grp. v . ML Manage r LLC (In re Mortgage

s Ltd.) , 771 F.3d 1211, 1217 (9th C ir. 2014). He re , the se c onside ra tions we i gh in fa vor of e quita

ble m ootne ss. Appe lla

nts did not se e k a

sta y and we re not othe rwise dilige nt in c ha lle nging the ba nkruptc y c ourt’ s unde rly ing orde rs, a nd the ir own ina c tion pe rm itte d de ve lopm e nts to proc e e d without the ir pa

rtic ipation. Se e In reMortgage s Ltd. , 771 F.3d a

t 1217 (noting tha

t the a ppe lla nt “ sa t on its rights, whic

h we ighs strongly

towa rds
e quita ble m ootne ss” ). M ore ove r, the ba nkruptc y c ourt’ s unde rly i ng orde rs ha ve be e n substa

ntia lly c onsum m a t e d. Se e In reThorpe

Insulation C

o. , 677 F.3d a

t 881. In pa

rtic ula r, a s to the dissolution, the truste e ha s ta

k e n the ste ps re quire d of he r. Fina lly , gra

nting Appe lla

nts the re lie f the y

se e k would unra

ve l the se ttle m e nt
a gre e m e nt, a

nd “ knoc k[] the props out from unde r” the re late d ba

nkruptc y c ourt orde rs, “ the re by c re a ting a n unc ontrolla

b le situa tion for the ba

n kruptc y c ourt.” Id. AFFIRM E D
.

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