In Re: John G. Pattullo in Re: Susan F. Pattullo, Debtors. United States Internal Revenue Vacating Service v. John G. Pattullo Susan F. Pattullo

ORDER

The United States Internal Revenue Service moves this court to vacate its memorandum disposition and the underlying decisions of the district court and bankruptcy court, and to dismiss this appeal as moot. We grant the motion.

I.

The issue on appeal in this case was whether the Pattullos were eligible for Chapter 13 bankruptcy relief. Their eligibility turned on whether the IRS was precluded from claiming that the Pattullos’ unsecured debts exceeded the $250,000 statutory cap for Chapter 13 proceedings. The IRS had stipulated to the amount of the Pattullos’ unsecured debts as part of a prior settlement between the Pattullos and the IRS. If that stipulation had a preclu-sive effect in this case, then the Pattullos were eligible for Chapter 13 relief under 11 U.S.C. § 109 (e) (1997); if it did not have such an effect, the Pattullos would not have been eligible for Chapter 13 relief and their Chapter 13 proceeding should have been dismissed. The IRS filed a motion to dismiss the Chapter 13 proceeding, and the Pattullos moved for summary judgment. The bankruptcy court granted the Pattullos’ motion, concluding that the prior stipulation had preclusive effect. The district…