In re 155 Chambersgood, Inc. (MANHATTAN REALTY CO. 1, LP, V. 155 CHAMBERSFOOD, INC.
- Summarized by Stephen Falanga , Walsh Pizzi O'Reilly Falanga LLP
- 2 months 1 week ago
- Case Type:
- Business
- Case Status:
- Affirmed
- Citation:
- 25-472-bk (2nd Circuit, Nov 26,2025) Not Published
- Tag(s):
-
- Ruling:
- In this Summary Order, the Second Circuit affirmed as "moot" the District Court's dismissal of an appeal by a landlord contesting the failure of the bankruptcy court to rule on its stay relief motion within the time frame required by 11 U.S.C. 362(e) since the stay relief had been granted and the case had thereafter been dismissed before the appeal was considered. As such, the appeal was not justiciable since the issue in dispute was not the type of challenged action capable of repetition and the landlord interest in an award of attorneys' fees was insufficient to create a live dispute.
- Procedural context:
- By judgment entered on February 3, 2025, the District Court dismissed Manhattan Realty’s pending interlocutory appeal as moot. On appeal from the District Court’s dismissal of its interlocutory appeal, the Second Circuit affirmed.
- Facts:
- This appeal arises from an eviction dispute between a commercial landlord, Manhattan Realty Co. 1, LP (“Manhattan Realty”) and its tenant, 155 Chambersfood, Inc. (the “Debtor”). In 2023, the Debtor, which operated a small pizzeria in lower Manhattan, faced eviction for failure to pay several months’ rent. Five days prior to the scheduled eviction, the Debtor filed a voluntary bankruptcy petition under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Eastern District of New York. This triggered an automatic bankruptcy stay that had the effect of enjoining the
eviction. See 11 U.S.C. § 362(a).
Manhattan Realty then moved under Section 362(d) of the Bankruptcy Code to lift the automatic stay with respect to its pending eviction proceeding. On such a request, the Bankruptcy Code requires the Bankruptcy Court to conduct a preliminary hearing within thirty days, and a final hearing no later than thirty days thereafter, unless this period is extended on consent of the parties or the court finds that “compelling circumstances” require a further extension. Id. § 362(d)-(e). During hearings on September 26, 2023, October 24, 2023, and December 5, 2023, the Bankruptcy Court declined to adjudicate the motion.
On December 18, 2023, Manhattan Realty filed an interlocutory appeal with the U.S. District Court for the Eastern District of New York, arguing that the Bankruptcy Court had not complied with the procedure and timeline set forth in Section 362, and that the stay had therefore automatically terminated pursuant to Section 362(e)(1).
Four months later, on April 8, 2024, the Bankruptcy Court lifted the automatic stay and allowed Manhattan Realty to evict the Debtor. On August 6, 2024, the Debtor moved to voluntarily dismiss its Chapter 11 case, and the Bankruptcy Court granted that motion on September 27, 2024.
By judgment entered on February 3, 2025, the District Court dismissed Manhattan Realty’s pending interlocutory appeal as moot.
- Judge(s):
- For the Court Catherine O’Hagan Wolfe, Clerk of Court
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