midpage
Projects
Sign in to see your projects.
491 B.R. 489
Bankr. W.D. Ky.
2013
Read the full case

Background

  • Jones oil and gas leases originated in 1992 and were assigned to Mammoth Resource, LLC in 2005.
  • Debtors filed Chapter 11 petitions in 2010, with estates to be jointly administered.
  • Trustee sought to sell Jones Leases under §363(b) in 2012; Appellant objected.
  • Sale order entered December 12, 2012; stay and bond issues followed; sale held January 29, 2013.
  • Court ultimately approved sale; Appellant argues leases were not estate property under §365(d)(4) and not subject to sale.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether §365(d)(4) applies to oil and gas leases in Kentucky Jones Leases were not assets of the estate under §365(d)(4) Leases were part of the estate and subject to sale under §363(b) Yes; leases were estate property for purposes of §363(b) sale; mootness analysis applicable.
Whether §363(m) requires dismissal of the appeal after a consummated sale Appellant argues §363(m) mootness does not apply if property not estate asset Under Parker, §363(m) moots appeal when sale is unstayed §363(m) applies; appeal dismissed as statutorily moot.
Whether the sale order was properly authorized and the mootness doctrine applies regardless of factual disputes about property status Property status contested; sale invalid if leases not estate property Bankruptcy court properly found estate inclusion; mootness controls Mootness applies; appeal dismissed.

Key Cases Cited

  • In re Parker, 499 F.3d 616 (6th Cir. 2007) (mootness applies to consummated sales without a stay regardless of merits)
  • In re Sax, 796 F.2d 994 (7th Cir. 1986) (sale authorized under §363(b) matters for mootness even if not estate property)
  • In re Nashville Sr. Living, LLC, 620 F.3d 584 (6th Cir. 2010) (§363(m) limits appellate review of a consummated sale)
  • The Charter Co., 829 F.2d 1054 (11th Cir. 1987) (mootness for sale approvals where stay not obtained)
  • In re Rare Earth Minerals, 445 F.3d 359 (4th Cir. 2006) (expresses caution on expanding statutory mootness exceptions)
Read the full case

Case Details

Case Name: Clearview Energy, LLC v. Mammoth Resources Partners, Inc.
Court Name: United States Bankruptcy Court, W.D. Kentucky
Date Published: Apr 8, 2013
Citations: 491 B.R. 489; 2013 U.S. Dist. LEXIS 50226; 2013 WL 1411220; Civil Action No. 1:13-CV-00009-JHM
Docket Number: Civil Action No. 1:13-CV-00009-JHM
Court Abbreviation: Bankr. W.D. Ky.
Log In
    Clearview Energy, LLC v. Mammoth Resources Partners, Inc., 491 B.R. 489