Case Explained: In re TOWER PARK PROPERTIES LLC DEBTOR TOWER PARK PROPERTIES, LLC

Court: United States Court of Appeals for the Ninth Circuit Filed: 2026-08-06 Docket: 2:22-cv-04718-CAS The Ninth Circuit affirmed the district court’s decision upholding the bankruptcy court’s dismissal of Tower Park Properties, LLC’s complaint against Fiduciary Trust International of California, Inc. and the denial of leave to amend. The court applied de novo review to the dismissal for failure to state a claim and abuse of discretion review to the denial of leave to amend, with futility reviewed de novo. The court held that Tower Park’s claims failed because the first amended complaint lacked factual allegations sufficient to plausibly establish causation under California law. Specifically, the court found that FTIC’s objections to the settlement agreement could not have caused Tower Park’s damages because those objections were overruled by the bankruptcy court. Furthermore, the court rejected Tower Park’s argument that FTIC caused the debtor’s principal, Alexander Hughes, to appeal the settlement approval, noting that most allegations were conclusory and the factual details actually suggested Hughes himself was the source of the damages. Regarding the denial of leave to amend, the court determined that because the bankruptcy court had already provided two opportunities to amend and Tower Park failed to articulate how the court abused its discretion in denying the first amendment, the lower court’s ruling was not an abuse of discretion. As a result, the dismissal of the complaint stands, and Tower Park is barred from proceeding with the claims as pleaded or amended under the circumstances described. Do It For The Case Law is a news reporting service. Nothing in this episode constitutes legal advice.