Timothy Blixseth v. Yellowstone Mountain Club

MEMORANDUM

Appellant Timothy L. Blixseth (“Blix-seth”) appeals the district court’s order dismissing, for lack of appellate standing, his appeal from the bankruptcy court’s order confirming the Third Amended Plan of Reorganization (“the Plan”). In a cross-appeal, Yellowstone Mountain Club, LLC, et al. (“the Debtors”) argue that the district court erred in denying their motion to dismiss Blixseth’s appeal on grounds of equitable mootness. We reverse in part, affirm in part, and remand.

(1) To have standing to appeal an order of the bankruptcy court, an appellant must show he is a “person aggrieved”&emdash;that is, that he is “directly and adversely affected by the order of the bankruptcy court&emdash;that it diminish the appellant’s property, increase its burdens, or detrimentally affect its rights.” Motor Vehicle Casualty Co. v. Thorpe Insulation Co. (In re Thorpe Insulation Co.), 677 F.3d 869, 884 (9th Cir.2012). One need not be a creditor of the estate to be a person aggrieved. See, e.g., Fondiller v. Robertson (In re Fondiller), 707 F.2d 441, 442 (9th Cir.1983).

The exculpation clause strips Blixseth of identifiable, affirmative legal claims, which are property. Called…