In Re Income Property Builders, Inc., Debtor. Armel Laminates, Inc. v. The Lomas & Nettleton Company

Income Property Builders, Inc. (debtor), owner of a condominium, filed a Chapter 11 proceeding in the Arizona . Bankruptcy Court, 8 B.R. 304 , on January 9, 1980. On January 18,1980, Lomas & Nettleton Co. (L & N), which owned a trust deed on the condominium, filed an adversary proceeding seeking to set aside the automatic stay mandated by 11 U.S.C. § 362 (a). Notice of the adversary proceeding was given to the debtor alone. At the hearing on the adversary proceeding the debtor did not appear; the relief requested by L & N was granted, and the condominium was sold under Arizona law. Prior to the sale, Armel Laminates, Inc. (Armel), which claims a mechanic’s lien on the property, made a motion to intervene in the adversary proceeding and a motion to reimpose the stay on the ground that it was entitled to notice of the proceedings, which it did not receive. The bankruptcy court denied these motions. Armel filed no application for a stay of the sale pending appeal, and after the sale appealed both motions to the United States Bankruptcy Appellate panel which dismissed the appeals as moot on September 9,1980. This appeal is from that decision.

We dismiss this appeal as moot for…