Homeowner Group Can Sue Developer After Stay Lifted

Law360, New York (October 13, 2009, 3:57 PM EDT) -- A homeowners association and the trustee charged with liquidating the estate of developer Empire Land LLC have agreed to modify the automatic bankruptcy stay to allow the association to sue Empire Land for construction defects.

The agreement, which still needs to be approved by the bankruptcy court, was filed Monday in the U.S. Bankruptcy Court for the Central District of California. Any damages in the defect case would be paid by Empire Land's insurers, not the estate itself.

"The primary reason that the trustee was willing...
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