Credit Managers Assn. v. Countrywide Home Loans
In this case, court decide whether the United States Bankruptcy Code preempts Code of Civil Procedure section 1800, recovery of preferences (Section 1800). In Sherwood Partners, Inc. v. Lycos, Inc. (Sherwood), Judge Kozinski held that the Bankruptcy Code preempted Section 1800. In Haberbush v. Charles & Dorothy Cummins Family Limited Partnership (Haberbush), citing to Judge Nelson’s dissent in Sherwood, held it did not.
Plaintiff argues the trial court erroneously relied on Sherwood, which is nonbinding federal authority, to find the Bankruptcy Code preempts Section 1800. Countrywide recognizes Sherwood is not binding on this court, but contends its reasoning is persuasive and court should rely on it to affirm the trial court’s judgment. By “Supplemental Citation,” Plaintiff suggests that the court rely on Haberbush to reverse the trial court’s judgment. The court found Haberbush persuasive and conclude the Bankruptcy Code does not preempt Section 1800.
Judgment Reversed.
Comments on Credit Managers Assn. v. Countrywide Home Loans