Kyle

Kyle v. Dye

Good Law
233 F. App'x 608
United States Court of Appeals for the Ninth CircuitApril 18, 2007Nos. 05-55566, 05-55568California704 words

Opinion

Lead Opinion

*609 MEMORANDUM ***

Clinton Irving appeals the decision of the Bankruptcy Appellate Panel (“BAP”) that affirmed the dismissal of his adversary complaint seeking to prevent the sale of a parcel of real estate belonging to Debtor. Irving’s attorney, David Kyle, appeals the BAP’s decision affirming the award of sanctions against him for violating Bankr.R. Proc. 9011. We affirm.

A. Dismissal order

Before the sale took place, the bankruptcy court ruled that the property in dispute was part of Debtor’s bankruptcy estate and that Carolyn Dye, the Chapter 7 Trustee, satisfied all the requirements in 11 U.S.C. § 363 . Irving challenged that ruling on appeal, but failed to obtain a stay pending appeal. That was fatal to his efforts to cancel the original quitclaim deed to Debtor — once the property was sold to a good faith purchaser, Irving’s appeal became moot. See In re Nat’l Mass Media Telecomm. Sys., Inc., 152 F.3d 1178 , 1181 (9th Cir.1998) (failure to obtain stay from order permitting sale of debtor’s assets moots an appellant’s case pursuant to the “bankruptcy mootness rule”). The ruling in the sale order that the property was part of the bankruptcy estate became the law of the…

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