Ellis

*499 MEMORANDUM **

John Matthew Ellis appealed the decision of the bankruptcy court which annulled retroactively the automatic stay that sprung into existence when Ellis filed for bankruptcy. Annulment of the stay was necessary to validate the sale to Khusrow Roohani that had taken place while the stay was in effect and permit Roohani to seek relief from a decision of a Nevada state court, which in reliance on the automatic stay had voided the sale. The bankruptcy court considered Ninth Circuit authority authorizing retroactive annulment of the automatic stay, National Environmental Waste Corp. v. City of Riverside (In re National Environmental Waste Corp.), 129 F.3d 1052 (9th cir.1997); Mataya v. Kissinger (In re Kissinger), 72 F.3d 107 (9th cir.1995), and applied the test for retroactive annulment found in National Environmental Waste Corp. The bankruptcy court annulled the stay and validated the sale to Roohani.

Ellis appealed to the Bankruptcy Appellate Panel but did not seek a stay of the order annulling the stay. In reliance on that order, Roohani went back to Nevada state court, obtained a judgment in his favor quieting title to the property in him, and thereafter sold…