Szanto v. Bank of New York, 3:23-cv-00095

Debtor-appellant Peter Szanto filed a Chapter 11 bankruptcy that was dismissed for improper venue on July 22, 2022.
After dismissal, Szanto moved in the bankruptcy court (Dec. 27, 2022) to vacate a trustee’s sale of real property at 4484 Dulin Place, Oceanside, CA, and requested expedited oral argument.
The bankruptcy court denied the motion and the expedited argument on January 4, 2023, finding it lacked jurisdiction over property no longer part of a bankruptcy estate.
Szanto appealed the bankruptcy court’s order to the U.S. District Court for the Southern District of California on January 18, 2023.
The district court reviewed legal conclusions de novo and factual findings for clear error, and affirmed the bankruptcy court because dismissal of the case terminated the court’s jurisdiction over estate property.
The district court directed the Clerk to close the case.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether the bankruptcy court had jurisdiction to vacate a trustee’s sale after dismissal of the bankruptcy case	Szanto: asked court to vacate the trustee’s sale despite the bankruptcy dismissal	Bank of New York: after dismissal the bankruptcy court lacked jurisdiction because the property was no longer in the estate	Court held the bankruptcy court lacked jurisdiction and affirmed denial of the motion to vacate
Whether denying expedited oral argument was erroneous	Szanto: requested expedited oral argument to address the sale	Bank of New York: denial appropriate because the court lacked jurisdiction to decide the underlying motion	Court affirmed denial of expedited oral argument

In re Strand, 375 F.3d 854 (9th Cir. 2004) (standard of review for bankruptcy appeals)
In re Larry's Apt., L.L.C., 249 F.3d 832 (9th Cir. 2001) (bankruptcy appellate review principles)
McQuaid v. Owners of NW 20 Real Estate (In re Federal Shopping Way, Inc.), 717 F.2d 1264 (9th Cir. 1983) (bankruptcy court jurisdiction limited to property that is part of the bankruptcy estate)