In re Hassen Imports Partnership

Proceedings: (In Chambers:) APPEAL FROM BANKRUPTCY COURT

I. INTRODUCTION

On July 27, 2011, debtor Hassen Imports Partnership (“HIP”) filed a voluntary Chapter 11 bankruptcy petition. On January 2, 2013, the bankruptcy case was converted to Chapter 7, and a trustee was appointed to manage the estate.

On August 21, 2013, appellant City of West Covina (“the City”) filed a “Motion to Enforce Covenants and Contractual Interests in Property” in bankruptcy court. In this motion, the City sought to prevent the trustee from selling a number of properties owned by HIP to Dighton America, Inc. (“Dighton”). In particular, the City argued that the order authorizing the proposed sale improperly provided for a sale free and clear of certain contracts and covenants previously entered into between HIP and the City. On September 11, 2013, the bankruptcy court denied the City’s motion. See Joint Appendix (“JA”) Ex. 22 (“Covenant Order”). The bankruptcy court subsequently issued an order authorizing the trustee to sell the properties to Dighton free and clear of the City’s contractual and covenant interests.

On October 11, 2013, the City appealed the bankruptcy court’s ruling to this Court, and…