In Re Alpha Beta Gamma Trust

I. INTRODUCTION

This appeal concerns the sale of real property by a bankruptcy debtor. On August 5, 2024, Alpha Beta Gamma Trust (“Debtor”) filed a petition for Chapter 7 bankruptcy and appointed William H. Avery (“Appellee”) as its bankruptcy trustee. Subsequently, the Bankruptcy Court granted Appellee’s application to employ a real estate broker to assist with the sale of a parcel of real property located in Sunland, California (the “Property”). Shortly after the Application was approved, Scott Eric Rosenstiel (“Appellant”) filed a Complaint for a quiet title action in state court against Appellee, asserting that Debtor, and by extension, Appellee, lacked authority to sell the Property (the “Action”). Accordingly, Appellant asserted claims for quiet title, Bivens, declaratory and injunctive relief, and tortious interference with a contract.’ On January 14, 2025, Appellee removed the Action to Bankruptcy Court as an adversarial proceeding. On February 18, 2025, Appellee filed a motion to dismiss and a motion for sanctions. While those motions were pending, on April 18, 2025, the Bankruptcy Court approved the sale of the Property. A few weeks later, on May 5, 2025, the…