Firm News

Claim Against Trustee Dismissed

Marc Rosenberg obtained a dismissal in Arnot v. Weibel, U.S.D.C., District of Oregon, Case No.17-cv-00592-MO. We represented the successor trustee on a deed of trust. Plaintiff, a bankruptcy trustee, brought a lawsuit in state court alleging claims for trespassing and invalid encumbrance, challenging the legitimacy of a successor trustee’s appointment under the Oregon Trust Deeds Act. The matter was removed to bankruptcy court, asserting that the bankruptcy court’s authority was invoked because of the effect undoing the foreclosure sale would have on the debtor and creditors. Ultimately, the Court granted summary judgment on the grounds that Plaintiff had failed to join indispensable parties that were no longer subject to the litigation, that the claims were brought after the two-year statute of limitations in the bankruptcy code for avoidance action, and that the five-year statute of limitations had passed to sue the deed of trust trustee under Oregon law, ORS 86.767(6).

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