In re People Who Care Youth Center, Inc. — 9th Cir. BAP (Oct 15, 2026)
A nonprofit's bankruptcy turns on a disputed forty-thousand-dollar lien against its property. Greta Curtis and Ammec claim payment for materials used at People Who Care Youth Center. A mechanic's lien is a recorded claim against real estate intended to secure payment for construction work or materials. The center disputed the debt and sued in bankruptcy court to remove the lien. Its court-approved reorganization plan moved the lien from the property to forty thousand dollars held while the dispute was decided. After trial, the bankruptcy court ruled that there was no enforceable obligation supporting the lien. Curtis will argue that the confirmed plan fixed the parties' rights and that the later ruling improperly rewrote it. The center also brought a separate slander-of-title claim, alleging harm from recording the lien. Defeating that claim does not itself establish a valid lien. Two bankruptcy protections also come up: the automatic stay pauses most debt collection when bankruptcy starts; a discharge injunction bars collecting discharged debts as personal liabilities.
In re People Who Care Youth Center, Inc. (No. 25-1196) — U.S. Bankruptcy Appellate Panel for the Ninth Circuit, argued October 15, 2026.
- 0:00Introduction
- 16:47Response — John-Patrick Fritz