Kovacevich

MEMORANDUM *

Spokane Raceway Park, Inc. (“SRP”) and Washington Motorsports Limited (“WML”) declared bankruptcy and entered into a settlement agreement with their former joint venture partner, the Kalispel Indian Tribe (the “Tribe”). Robert E. Kovacevich, a 10% shareholder, former officer, and creditor of SRP, opposed the settlement before the bankruptcy court. After hearing Kovacevich’s arguments challenging the proposed settlement agreement, the court approved the agreement. Kovacevich appealed the bankruptcy court’s approval order to the United States Bankruptcy Appellate Panel of the Ninth Circuit (the “BAP”). The BAP held that, because Kovacevich did not seek a stay of the bankruptcy court’s order, allowing the parties to consummate their agreement and execute the transactions it contemplated, Kovacevich’s appeal was moot. We agree.

We have previously held that “it is obligatory upon [an appellant such as Kovace-vich] to pursue with diligence all available remedies to obtain a stay of execution of the objectionable [bankruptcy court] order ... if the failure to do so creates a situation rendering it inequitable to reverse the orders appealed from.” Trone v. Roberts Farms,…