In re: TRIDENT ASSOCIATES LIMITED PARTNERSHIP, Debtor. TRIDENT ASSOCIATES LIMITED PARTNERSHIP, a Michigan Limited Partnership, d/b/a Beztak of Tri Atria Limited Partnership, Plaintiff-Appellant, v. METROPOLITAN LIFE INSURANCE COMPANY, Defendant-Appellee., 52 F.3d 127

Summary

Plaintiff partnership was the subject of defendant's attempts to foreclose a mortgage. Plaintiff partnership formed a new identity by transferring all its assets on the eve of foreclosure. The court indicated 11 U.S.C.S. § 1112(b) allowed dismissal of a petition for cause and found bad faith constituted cause. The court found the Laguna bad faith factors present in plaintiff's pre-petition maneuverings. The court noted that plaintiff created a one-asset debtor on the eve of foreclosure, that plaintiff's pre-petition conduct was improper when they arguably misled the court, plaintiff was unsuccessful in avoiding foreclosure, the plaintiff had no employees or ongoing business, and there was no possibility of reorganization. The court found no clear error in the bankruptcy court finding of bad faith.