Saturday, January 4, 2014

9th Cir. BAP - Published - Pre-petiton tax sale but not recorded is valid - also good case law on amendments to complaint

The Debtor purchased real property prior to a tax sale, the tax sale took place pre-petition but was not recorded until after the filing.  The Debtor filed a complaint against the county to avoid the tax sale as a fraudulent transfer, declaratory judgment, injunction, violation of the stay and for unjust enrichment. 

The Count filed a motion to dismiss the complaint under 12(b)(6).  The Bankruptcy Court dismissed the complaint and found that due to undue delay (and futility) no amendment would be permitted.  The Debtor appealed and the BAP affirmed.

The BAP went through the standards of a motion to dismiss and affirmed.  An interesting point is their discussion of the case law on amendments to complaints after the filing of a 12(b)(6) motion and the "Foman Factors". 

2014/01/03/TrachtGut-13-1229


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