Clearview Energy, LLC v. Mammoth Resource Partners, Inc.
1:13-cv-00009
W.D. Ky.Apr 8, 2013Background
- Appellant Clearview challenges Bankruptcy Court’s sale of Jones Oil and Gas Leases under §363(b).
- Leases were allegedly not property of the bankruptcy estate because they were not assumed under §365(d)(4).
- Trustee sought to sell oil and gas interests in 2012; sale approved December 12, 2012 and conducted January 29, 2013.
- Appellant appealed Sale Order; bond of $400,000 was posted to stay sale; sale confirmed February 4, 2013.
- Court applies §363(m) to moot appeals of consummated, non-stayed sales and grants the Trustee’s motion to dismiss as statutorily moot.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does §363(m) moot an appeal when the sale of estate property is consummated without a stay? | Clearview argues §363(m) does not apply because leases were not estate property. | Leasure argues §363(m) bars appeal once sale completed without stay. | Yes; §363(m) moots the appeal. |
| Are the Jones Oil and Gas Leases property of the bankruptcy estate under §365(d)(4)? | Leases were not assumed, so not estate property per §365(d)(4). | Bankruptcy court found leases were estate property and properly sold under §363(b). | Leases were deemed part of the estate; sale was appropriately authorized. |
Key Cases Cited
- In re Parker, 499 F.3d 616 (6th Cir. 2007) (§363(m) moots appeals of consummated sales, regardless of merits)
- In re Sax, 796 F.2d 994 (7th Cir. 1986) (§363(m) applies even if property not estate asset when sale authorized under §363(b))
- In re Nashville Sr. Living, LLC, 620 F.3d 584 (6th Cir. 2010) (§363(m) limits appellate review of consummated sale)
- In re Vance, 12 Fed. Appx. 380 (7th Cir. 2001) (sale mootness where not stayed, even if property contested)