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

9th Cir. BAP Mootness when Case is Dismissed

Upon being advised at oral argument that the Debtor's chapter 11 case was dismissed (but not advised by the Debtor's counsel), the Court determined that the underlying appeal was now moot.  The Court had an excellent but brief discussion on mootness.

In re Koo - 9th Cir. BAP

8-20-13 - 9th Cir. BAP - Community Bancorp - Settlement and Mootness Issue

In an unpublished decision, the 9th Circuit BAP ruled in favor of my fellow trustee in approving a settlement under the A&C Factors.  Despite the approval, the BAP appeared to side step an important issue which was the issue of equitable mootness.  The Court examined Constitutional mootness and equitable mootness.  The Court did conclude that the appeals are not constitutionally moot but did not decide whether the appeals were equitably moot.  Instead, they turned to the merits.  With that said, the discussion is well worth the read and gives the reader a good discussion on mootness.  As indicated above, the Court did approve the settlement but did find that the amount of the settlement may have been on the low end of the spectrum. 

Community Bancorp