High Court Denies Look at Good Faith Bankruptcy Sale Standard

The Supreme Court declined to consider a Fifth Circuit ruling that allowed the sale of a California hotel project to proceed over the objections of a general contractor that said the transaction wasn’t made in good faith.

Petitioner SR Construction was the general contractor on the construction of a Palm Springs hotel. Hall Palm Springs was financing the construction with a loan secured by a deed of trust on the property. Two years into the project, the owner fired SR Construction. Hall Palm Springs later transferred the property to RE Palm Springs II LLC, an affiliate entity it created.

RE ...