Eden Place LLc v. Perl (In re Perl)
Eden Place LLc v. Perl (In re Perl) ___F.3d___ (9th Cir. 1/8/16) (9th Cir. Appeal number14-70039): Creditor did NOT violate bankruptcy stay when creditor had law enforcement officers evict debtor, post-petition, from real property debtor was occupying, which had previously belonged to debtor, but which debtor no longer owned, at time debtor filed bankruptcy. Held mere fact that bankruptcy debtor had possession of a real property did NOT mean that new owner violated stay by having debtor evicted. The new owner of the real property had purchased debtor’s real property at a nonjudicial foreclosure sale held pre-petition (before debtor filed bankruptcy). Also prepetition, the new owner sued to evict debtor from the property, in California state court, and, prepetition, obtained an eviction order from California state court, giving new owner right to evict debtor from the property. Debtor then filed Chapter 13 bankruptcy. New owner had law enforcement officers evict debtor, after debtor filed bankruptcy, and without seeking relief from stay in the bankruptcy case. Debtor claimed the eviction violated the bankruptcy automatic stay, because debtor’s possession of the property was an interest protected by the automatic stay. Debtor lost in the Ninth Circuit, which held mere possession, without right to possess (there was no right to possess, due to new owner having obtained an eviction order in state court, BEFORE debtor filed bankruptcy), was NOT an interest protected by the bankruptcy automatic stay. Therefore, new owner did not have to seek or obtain relief from stay, to be able to have law enforcement officers evict debtor, post-petition, using the eviction order obtained prepetition. Case also presented issue of whether there was an appealable order.