Castaic Partners II, LLC v. Daca Castaic, LLC (In the Matter of Castaic Partners II, LLC)

Citation:
Case No. 14-55281
Tag(s):
Ruling:
The appeal was deemed constitutionally moot because the appellate court found that it cannot render relief in the event that it decides the matter in the appellant's favor. The court found that because the bankruptcy case was dismissed and the dismissal has become final, there is no case or controversy relating to the issue that is directly involved in the reorganization of the estate.
Procedural context:
The appeal came from a decision of the district court's dismissal of Debtor's appeal as moot.
Facts:
Debtors-Appellants Castaic Partners, LLC, and Castaic Partners II, LLC, (collectively Castaic) appealed to the 9th Circuit the district court’s dismissal of Debtor's appeal from a bankruptcy court decision that granted relief from the automatic stay to a secured creditor in order for it to proceed with its foreclosure sale of Debtor's property. The Debtor appealed the decision. While the appeal was pending, the bankruptcy court dismissed the underlying bankruptcy case. The Debtor did not appeal the dismissal order of the case which became final 14 days after its entry. The appellate court found that if the Debtor appealed the dismissal order, it may have had some power to grant the relief it seeks. However, because there is no case or controversy to which the appeal relates, the appeal was dismissed.
Judge(s):
Circuit Judges Milan Smith, Jr. and Jacqueline H. Nguyen and District Court Judge Claudia Wilken (sitting by designation).

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