IN RE PALMDALE HILLS PROPERTY, LLC

No. 10-60004.

654 F.3d 868 (2011)

In re PALMDALE HILLS PROPERTY, LLC, Debtor. Palmdale Hills Property, LLC; SCC/Palmdale, LLC; SunCal Summit Valley, LLC; SunCal Emerald Meadows, LLC; SunCal Bickford Ranch, LLC; Acton Estates, LLC; SunCal Communities I, LLC, Appellants, v. Lehman Commercial Paper, Inc., Appellee.

United States Court of Appeals, Ninth Circuit.

Filed August 3, 2011.


Attorney(s) appearing for the Case

Paul J. Couchot (argued) and Sean O'Keefe , Winthrop Couchot, P.C., Newport Beach, CA, for appellants Palmdale Hills Property, LLC, et al.

Christopher R.J. Pace , Weil Gotshal & Manges, LLP, Miami, FL (argued), Dean A. Ziehl , Pachulski Stang Ziehl & Jones LLP, Los Angeles, CA, for appellee Lehman Commercial Paper, Inc.

Before: BETTY B. FLETCHER and N. RANDY SMITH, Circuit Judges, and RUDI M. BREWSTER, Senior District Judge.


OPINION

N.R. SMITH, Circuit Judge:

An automatic stay imposed by 11 U.S.C. § 362(a) bars actions that would diminish the estate of a debtor in bankruptcy (the first debtor). Therefore, if another (also a debtor in bankruptcy) wants to equitably subordinate the creditor claims of the first debtor, it must seek relief from stay from the first debtor's home bankruptcy court. We affirm the judgment of the Bankruptcy Appellate Panel (BAP).

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