In the matter of Castaic Partners II, LLC, No. 14-55281 (9th Cir. 2016)
Annotate this CaseCastaic, debtors, challenged the district court's dismissal of this bankruptcy appeal as moot under 11 U.S.C. 363(m). During the pendency of the appeal, the bankruptcy court dismissed the underlying bankruptcy cases as well. Castaic did not appeal those dismissals, and after 14 days, they became final. Therefore, the court concluded that there is no longer any case or controversy, and the court has no power to grant Castaic any effective relief. The court dismissed the appeal as moot under Article III.
Court Description: Bankruptcy. The panel dismissed bankruptcy appeals as moot under Article III. The bankruptcy court granted a party’s motion for relief from the automatic bankruptcy stay so that it could proceed with foreclosure sales. Debtors appealed to the district court, IN THE MATTER OF CASTAIC PARTNERS II, LLC 3 but did not seek a stay of the bankruptcy court’s order pending appeal. The foreclosures went forward. Thereafter, with debtors’ consent, the bankruptcy cases were dismissed. The panel held that debtors’ appeals were constitutionally moot because there no longer was any case or controversy.
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