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Bankruptcy
Bankruptcy Challenge

Michael Kenneth Nemee, Michelle Seobhan McKee Nemee v. County of Calaveras

Published: Mar. 30, 2013 | Result Date: Jun. 22, 2012 | Filing Date: Jan. 1, 1900 |

Case number: 1:12-cv-00002-LJO Bench Decision –  Dismissal

Court

USDC Eastern


Attorneys

Plaintiff

Kenneth M. Foley
(Law Office of Kenneth M. Foley)

Malcolm D. Gross


Defendant

Janis J. Elliot


Facts

Michael and Michelle Nemee purchased the subject property, then being used as a cattle ranch and olive orchard. It was zoned as agricultural reserve, restricting its use subject to the Williamson Act. The Nemees commenced a survey for the purpose of constructing a golf course. The County of Calaveras informed the Nemees that such use, whether for public or personal purposes, was not allowed on property zoned for agricultural uses pursuant to the ordinances then in effect. The Nemees maintained that that such use was not in violation of the Act and commenced construction of an 18-hole golf course. The County received several complaints and cited the Nemees for zoning code violations. The Nemees applied for a general plan amendment, zoning amendment, and tentative subdivision tract map for the subject property. However, its application made no reference to a golf course, even though loans obtained by the Nemees made clear that they were building a golf course. The golf course construction became the subject of proceedings before the County Board of Supervisors. The Nemees filed multiple actions in the state court related to the Board proceedings. The Nemees subsequently filed for bankruptcy. Some of their claims, initially filed in state court, were removed to the bankruptcy court.

Ultimately the bankruptcy court determined that the golf course was not a permitted use under county zoning ordinances. The Nemees appealed. In the interim, the bankruptcy court granted the bank relief from automatic stay and the bank thereafter moved forward with foreclosure proceedings.

Result

U.S. District Court Judge Lawrence J. O'Neill dismissed the matter for lack of jurisdiction and mootness because the bank had previously foreclosed on the property at issue, and the Nemees no longer owned the subject property. Moreover, neither the trustee assigned to represent the estate in the bankruptcy proceedings nor the bank had entered into the appeal.


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