Failing to Obtain a Stay and the Creditor Subsequently forecloses, the appeal must be dismissed as moot and a discussion of equitable mootness

An Alabama District Court did an excellent job in describing mootness in connection with a foreclosure sale.  The Court analyzed mootness due to a foreclosure and equitable mootness.  Although the Court cited to 11th Circuit cases, the Court by analogy cited to 11 USC 363(m) and stated that the 11th Circuit in analyzing the mootness doctrine is not limited to transactions covered under that subsection.   In focusing on equitable mootness, the Court noted that it is most commonly applied in Chapter 11 cases but courts have applied it in Chapter 7 cases where the trustee has already disbursed funds to creditors (citing the 5th and 4th Circuit).  

Davis v. Shepard

United States District Court for the Northern District of Alabama, Northeastern Division

June 18, 2014, Decided

Case No. 5:11-mc-3483-KOB