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 byN i nth C i r c ui tR ul e 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 : M EGA- C P OW ER C OR P OR AT I ON , D ebt or, LEW I S CH I P TA Y LO R; CH I P TA Y LO R, In T rust ; JA R E D T A Y L O R ; E L G IN I NV E S T ME NT S , I NC . ; S HA R ON T AY L OR ; NI C OL E T AY L OR P IG N A T E L L I; P A U L P IG N A T E L L I; CO LI N TA Y LO R; LO U I SE TA Y LO R; 1407580 O N T A R I O L I M I T E D ; 1248136 O N T A R I O L I M I T E D ; M E G A C . T E C H ., L T D, A p p el l an t s, v. AX I ON POW ERI NTERNA TI ON AL, I NC . ; AX I ON P OWE R C OR P OR AT I ON ; R OB E R T AV E R I L L ; GL E NN PA TTERSO N ; H A P I N V ESTM EN TS, L L C ; I GO R F I L I P E NK O; T HO MAS GRAN VI LL E, A p p el l ees. N o. 10- 60036 B A P N o. 09- 1343 ME MOR AN DU M * 

# FI LED DE C 05 2011 M OLLY C. DW Y ER, CLERK U . S. C O U R T OF APPE ALSI n r e : M EGA- C P OW ER

C OR P OR AT I ON , D ebt or, GL E NN P AT T E R S ON ; HA P I NV E S T ME NT S , L L C ; I GO R FI LI PE NK O; THOM AS GRAN VI LL E; AX I ON P OWE R C OR P OR AT I ON ; ROBE RT AV ER I LL ; AX I ON POW ER I N T E RN A T I O N A L , I N C ., A p p el l an t s, v. LEW I S CH I P TA Y LO R; CH I P TA Y LO R, In T rust ; JA R E D T A Y L O R ; E L G IN I NV E S T ME NT S , I NC . ; S HA R ON T AY L OR ; NI C OL E T AY L OR P IG N A T E L L I; P A U L P IG N A T E L L I; CO LI N TA Y LO R; LO U I SE TA Y LO R; 1407580 O N T A R I O L I M I T E D ; 1248136 O N T A R I O L I M I T E D ; M E G A C . T E C H ., L T D, A p p el l ees. N o. 10- 60037 B A P N o. 09- 1380

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 H ol l ow e l l , P appa s , a nd D unn, B a nkrupt c yJ udge s , P r e s i di ng3 A r gue d and S ubm i tt e d N ove m be r16, 2011 S a n F r a n c is c o , C a lif

o rn ia B efo re: H A W K IN S , M cK E O W N , an dM . S M IT H , C i rcu i tJu d g es. A p p e lla n ts L e w is C h ip T a y lo r , C h ip T a y lo rI n T ru s t, J a r e dT a y lo r , E lg in I n v e s tm e n ts , I n c ., S h a r o n T a y lo r , N ic o le T a y lo rP ig n a te lli, P au l P ig n a te lli, C o lin T a y l or , L oui s e T a y l or , 1407580 O nt a r i o L i m i t e d, 1248136 O nt a r i o L i m i t e d, M e ga C T ec h. , L t d. (c ol l ec t i vel y, the T ay l or F am i l y G roup ) app ea l the bank rupt cy appe l l a t e pa ne l ’ s ( B A P ) a f f i rm a nc e of

the ba nkrupt c yc ourt ’ s s um m a ryj udgm e nt di s m i s s a l of

the T a y l orF a m i l yG r oup’ s c l a i m s i n a n a dve r s a rypr oc e e di ng c onc e rni ng ow ne r s hi p of the r i ght s t o al e a d- a c i d- c a rbon ba tt e ryde vi c e , f i l e d by A x io n P o w e rI n te rn a tio n a l, I n c ., e t al , ( A xi on) , i n the i nvol unt a ryba nkrupt c ya c t i on o f M eg a- C P o w erC o rp ., a C h ap ter 1 1 d eb to r. A x io n cr o ss -ap p ea ls th e B A P ’s a f f i rm a nc e of

the B a nkrupt c yC ourt ’ s de ni a l of s a nc t i ons a nd c ont e m pt . A s the fa ct s and procedural hi st ory are fam i l i art o the part i es , w e do n otre ci t e them here e x c e p t a s n e c e s s a ryto e x p la in o u rd is p o s itio n . W e h a v e j u r i s d i c t i o n u n d e r2 8 U . S. C. § 1 5 8 , a n dw e a f f i rm. A tthe out s e t , w e a f

f i rm the B A P ’ s hol di ng a nd l e ga l a na l y s i s tha tthe bank rupt cycourthad j uri sdi ct i on ov erthe T ay l or F am i l y G roup . T he bank rupt cy courthad p er sonal j uri sdi ct i on ov erthe T ay l or F am i l y G roup i nsofaras they had4

s u b m itte dto th a t p e r s o n a l ju r is d ic tio n b yap p e a r in g a n dv ig o r o u s lyp a rtic ip a tin g in the i ns t a ntl i t i ga t i on. T hi s f a c tw a s c orr e c t l ynot e d both bythe B A P a nd the b a n k ru p tc yc o u rt. T h e b a n k ru p tc yc o u rt h a ds u b je c t m a tte rju r is d ic tio n b e c au s e th is a c t i on i s ac or e pr oc e e di ng unde r28 U . S . C . §§ 1334( b) ( a c t i ons “ a r i s i ng i n or r e l a t e d t o” ac a s e unde rt i t l e 11) a nd 157( b) ( 2) ( m a tt e r s c onc e rni ng a dm i ni s tr a t i on of aba nkrupt c ye s t a t e , c onf i rm a t i on of

apl a n, ora nothe rpr oc e e di ng a f f e c t i ng the part i es ' l egal re l at i on shi ps). M oreover, the bank rupt cycourtexer ci se d p roper s u b j e c tm a tt e rj u r i s d i c t i o n b e c au s e o f i t s u n d i s p u t e dr i g h tt o i n t e rp r e ti t s o wn o r d e r s . Se e ge ne r al l

yB e ne f i c i al T r us t D e e ds v . Fr ankl i n (

I n r e Fr ankl i n) , 802 F . 2d 3 2 4 , 3 2 6 ( 9 th C ir . 1 9 8 6 ) ; H u se v. H u se– S p o rsem , A . S. (In re B i rt i n gFish eri es, I n c .) , 30 0 B . R . 48 9, 49 9 (9th C i r. B A P 20 03 ). O n the m e r i t s , the B A P pr ope r l ya f f i rm e d the ba nkrupt c yc ourt ’ s gr a ntof s u mma ryj u d g me n tt o th e A x i o n A p p e l l e e s a s t o th e Ta y l o rFa mi l yG r o u p ’ s c l a i ms bythe t e rm s of

the S e c ond A m e nde d P l a n, w hi c h c ont a i ne d ape rm a ne nti nj unc t i on a nd r e l e a s e of

c l a i m s . T he S e c ond A m e nde d P l a n c ontr ol s be c aus e , r e ga r dl e s s of the e xi s t e nc e of

the a l l e ge d pr e vi ous O r a l A gr e e m e nttr a ns f e rr i ng a s s e t s t o the T a y l orF a m i l yG r oup, the D e bt ors t i l l w oul d ha ve c om e i nt o pos s e s s i on of the a s s e ts u n d e rth e te rm s o f th e L e tte rA g r e e m e n t. F i r s t , a s t o the di r e c t/ de r i va t i ve is s u e , in b a n k ru p tc yc o u rt a n db e f o r e th e B A P , th e T a y lo rF a m ilyG r o u p f a ile dto5

pr of f e re vi de nc e s how i ng di r e c tha rm , a s r e qui r e d t o pr ove adi r e c tc l a i m . S e c ond, as t o the exi st ence of an O ra l A gree m ent , the T ay l or F am i l y G roup re peat edl y f ai l ed t o p ro v i d e cred i b l e ev i d en ce p ro v i n g i t s ex i st en ce an dt erm s. A nd now , the T a y l or F am i l y G ro u p p o i n t s t o si m i l arl y co n trad i ct o ry an di n co n si st en tev i d en ce t o co n t est th e te rm s o f

th e L e tte rA g r e e m e n t. A l l of the T ay l or F am i l y G roup ’ s argum ent s are u n a v a ilin g b e c au s e th e yf a il to c h a n g e th e u ltim a te f a c t th a t o w n e r s h ip o f

th e a s s e ts w a s tr a n s f

e rr e dto th e D e b to ra n dth u s p a s s e dth r o u g h th e S e c o n dA m e n d e dP la n . A c c or di ngl y , the ba nkrupt c yc ourtpr ope r l yf ound, a nd the B A P pr ope r l ya f f i rm e d, thatre gardl es s of any al l eged pre-e xi st i ng agre em ent s, the S ec on d A m ended P l an c o n tr o ls a n db a r s th e T a y lo rF a m ilyG r o u p ’s c la im s . N ot abl y, the T ay l or F am i l y G roup ra i se s s om e new fa ctual and l egal a r gum e nt s r e l a t i ng t o the ow ne r s hi p r i ght s i n the t e c hnol ogy , i nc l udi ng, butnot lim ite dto c o n te s tin g th e o w n e r s h ip r ig h ts o f th e T e c h n o lo g yb a s e du p o n lis tin g in the S c he dul e s , a n a l l e ge d “ qui t c l a i m ” of ow ne r s hi p r i ght s i n the T e c hnol ogy , the a lle g e d“e x e c u to ry ” n a tu r e o f th e L e tte rA g r e e m e n t, a n da n a lle g e d“d o u b le i nj unc t i on” bythe ba nkrupt c yc ourt . T he s e a r gum e nt s w e r e c ons i de r e d on the m e r i t s a nd de e m e d notw a i ve d be c aus e the yr e l a t e d t o the unde r l y i ng c l a i m s i n the l i t i ga t i on— na m e l y , w he the r“ the i nj unc t i on i n the S e c ond A m e nde d P l a n doe s not appl yt o T

a y lo rv . T a m b o r il b e c au s e , in th e O r a l A g r e e m e n t, C & T a g r e e dto6

transfe r t o the T ay l or F am i l y G roup (E l gi n) al l as se t s of C & T . ” In re Mega-C P o w e rC o r

p ., No s . NV - 0 9 - 1 3 4 3 - PADH , NV - 0 9 - 1 3 8 0 - Pa DH , No . 0 4 - 5 0 9 6 2 - GW Z, N o . 0 7 - 0 5 0 1 7 - G W Z , 2 0 1 0 W L 6 4 6 7 6 6 8 , a t * 9 ( 9 th C ir . B A P J u n . 2 9 , 2 0 1 0 ) ; se e ge ne r al l yY e e v . C i t yof Es c ondi do , 5 0 3 U .S . 5 1 9 , 5 3 4 ( 1 9 9 2 ) . T h e s e a r g u m e n ts f a il be c aus e the yl a c k s upporti n the r e c or d, a nd the r e f or e do notc ha nge the S e c ond A m e nde d P l a n’ s c ontr ol . A c c or di ngl y , w e a f f i rm the B A P ’ s a f

f i rm a nc e of

the b a n k ru p tc yc o u rt’s s u m m a ryju d g m e n t d is m is s a l o n th e m e r its . As t o Ax i o n ’ s c r o s s - ap p e a l f o rc o n t e m p tan ds a n c t i o n s , we a f f i rm th e B AP be c aus e the ba nkrupt c yc ourtappl i e d the c orr e c tl e ga l s t a nda r d a nd r e nde r e d a f a c tua l f i ndi ng, ba s e d on the r e c or d, tha tthe r e w a s i ns uf f i c i e nte vi de nc e t o f

i nd

“ thatany vi ol at i on of the pl an i nj un ct i on by the T ay l or F am i l y G roup w as i nt ent i on al , or thatcont em ptsanct i on s w er e j ust i fi ed. ” I n r e Meg a - CP o w e rC o r p ., 2010 W L 6467668, a t*14.

AF F I RME D.