In the Matter of Ray Dwaine Nicholson and Billie Jean Nicholson, Debtors. Thomas J. Juanarena v. Ray Dwaine Nicholson and Billie Jean Nicholson

The Nicholsons appeal from the district court’s reversal of an order of the bankruptcy court reforming a trustee’s deed of sale. We affirm the district court’s decision.

FACTS

In 1979, the Nicholsons bought 140 acres of land in Yavapai County, Arizona (the “Tone parcel”). They promptly sold all but approximately 18 acres of the parcel in two lots to Clatterbuck and Hitney, taking back notes in partial payment for each lot. Shortly after, in July 1980, the Nicholsons filed as bankrupts. The bankruptcy court ordered the sale of “the Debtor’s interest” in the Tone parcel to pay the Nicholsons’ creditors. At the trustee sale, both the Nicholsons and Juanarena bid $40,000. Since Juanarena’s bid was for cash, the trustee in bankruptcy deeded the Nicholson’s interests to him. The sale was confirmed by the Bankruptcy Court without objection.

On November 8, 1983, the bankruptcy court granted a motion by the Nicholsons under Fed.R.Civ.P. 60(b) and reformed Jua-narena’s deed to exclude the notes. Jua-narena did not appeal this order. Rather, he filed a motion of “objection to order” on November 10, 1983. It is apparent from both the papers filed in relation to this motion and from the…