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May 19, 2015

Reagan Boyce Defeats Motion for Reconsideration, Brutzkus Gubner Selected as Special Litigation Counsel

Reagan Boyce successfully defeated a debtor’s (The Zuercher Trust) and interested party‘s (Monica Hujazi) Motion for Reconsideration after the Bankruptcy Court found the estate’s asset sale to be in good faith. The Trust and Ms. Hujazi had challenged the Bankruptcy Court’s order approving the sale of Los Angeles residential buildings to the Court-approved back-up buyer. The Bankruptcy Appellate Panel (“BAP”) then upheld the sale order and good faith finding, but remanded the case back to the Bankruptcy Court to review post sale order events, leading to the back-up buyer’s purchase, to determine whether those events were, indeed, in good faith. To address the BAP’s remand order, The Trust and Ms. Hujazi brought a motion under FRPB 9024 and FRCP 60 for reconsideration of the good faith determination. After The Trust and Ms. Hujazi failed to present any new evidence in support of their contentions, the Bankruptcy Court, Hon. Hannah L. Blumenstiel presiding, denied their motion and upheld the chapter 11 Trustee’s sale of estate assets and good faith determination.

In another matter, upon conversion of In re The Zuercher Trust of 1999 from chapter 11 to 7, Brutzkus Gubner has been selected as special litigation counsel for chapter 7 trustee E. Lynn Schoenmann. On behalf of the bankruptcy estate, Brutzkus Gubner will proceed with prosecution of nine adversary proceedings against Monica Hujazi, the debtor’s principal, and other entities controlled by Ms. Hujazi.

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