595 B.R. 269
8th Cir. BAP2019Background
- Debtor Theresa Marshall filed Chapter 13 on May 3, 2018; Deutsche Bank (the Bank) moved for relief from the automatic stay on June 28, 2018, seeking relief for cause (including repeated filings and bad faith).
- A hearing was scheduled for July 12, 2018; debtor requested a continuance which the bankruptcy court denied. Debtor did not appear and the court granted relief from the stay on July 16, 2018.
- Debtor timely appealed the stay-relief order to the Bankruptcy Appellate Panel (BAP). The bankruptcy case was dismissed on September 4, 2018.
- The property was sold at a foreclosure sale to the Bank on September 6, 2018, and debtor was later evicted. The parties agree these facts.
- The BAP ordered supplemental briefing on whether the appeal was moot given the foreclosure sale and dismissal of the bankruptcy case. The BAP concluded it could not provide effective relief and dismissed the appeal for lack of jurisdiction.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the bankruptcy court abused its discretion by denying debtor's continuance request for the July 12 hearing | Marshall: denial was an abuse of discretion | Bank: hearing was properly set; debtor failed to appear; relief was properly granted | Appeal dismissed as moot; court did not reach merits because no effective relief is possible |
| Whether Bank had legal standing to foreclose the Property | Marshall: Bank lacked standing to foreclose | Bank: had standing and foreclosed; sale occurred | Appeal dismissed as moot; court did not reach standing question because foreclosure sale and lack of stay pending appeal preclude effective relief |
Key Cases Cited
- Hickman v. State of Missouri, 144 F.3d 1141 (8th Cir. 1998) (federal courts limited to live cases or controversies)
- United States v. Fitzgerald, 109 F.3d 1339 (8th Cir. 1997) (courts generally cannot undo sales to bona fide third-party purchasers)
- In re Tigue, 363 B.R. 67 (8th Cir. BAP 2007) (appeal of stay-relief order moot where property was sold)
- In re Dudley, 273 B.R. 197 (8th Cir. BAP 2002) (appeal of stay relief moot after foreclosure sale)
- In re Rodriquez, 258 F.3d 757 (8th Cir. 2001) (sales are not subject to appellate modification absent a stay pending appeal)