Bankr. L. Rep. P 72,689 in Re Globe Investment and Loan Company, Inc., Debtor. Giovanni B. Magnoni v. Globe Investment and Loan Company, Inc.

Giovanni Magnoni and fourteen other appellants brought an action to set aside a trustee’s sale of a bankrupt’s real estate. The appellants claimed that the sale violated the automatic stay provision of 11 U.S. C. § 362. They also alleged that the trustee in bankruptcy violated 11 U.S.C. § 363 (b) by failing to notify them of the pending sale of the debtor’s interest in the real estate. The bankruptcy court entered judgment for the appellees, and the appellants appealed unsuccessfully to the district court. They now appeal the district court’s order affirming the bankruptcy court.

We affirm.

FACTS AND PROCEEDINGS BELOW

The facts in this case are basically not in dispute. Appellee Globe Investment and Loan Company (Globe) was engaged in business as a loan broker. In November 1980, Globe negotiated a loan between the owner of a parcel of real estate in Sarato-ga, California and seventeen investors, fifteen of whom are appellants in the present action. The investors made a loan to the property owner in exchange for promissory notes which were secured by a third deed of trust on the Saratoga property. The investors each received an interest in the third deed of trust in an amount…