In re Berkeley Delaware Court, LLC

A bankruptcy’s order approving the trustee’s settlement of the estate’s claims against a defendant is a sale under 11 USC 363(m) and is unreviewable on appeal unless the bankruptcy court grants a stay pending appeal.  11 USC 363(m) applies to a trustee’s sale or compromise of the estate’s claims against third parties.  Hence, the debtor’s appeal from an order approving a settlement which provided for the trustee’s sale to the foreclosing creditor of the bankruptcy estate’s claims against the foreclosing creditor had to be dismissed.  Under 363(m) the validity of the sale could not be challenged on appeal unless the sale was stayed on appeal.  The debtor/appellant failed to seek a stay pending appeal.  Therefore, the appeal is dismissed as moot.

Ninth Circuit Court of Appeals (Nguyen, J.); August 23, 2016; 2016 WL 4437616

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