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Opinion 211

Case Name: 

In re Paiute Oil & Mining Corp.

Judge: 
U.S. District Court, Utah
Date: 
Oct-21-1986
Case Number(s): 
84C-3451
Status: 

APPEAL
Unpublished

Body: 

The parties to this appeal, debtor and buyer, had a dispute over buyer's payment of a deposit to debtor, after the purchase was not consummated. Buyer obtained a district court judgment against debtor, in the amount of $30,000 plus interest, which debtor appealed to the Tenth Circuit. In taking the appeal, debtor posted a $40,000 supersedeas bond. Debtor assigned its interest in the supersedeas bond to its attorney and, approximately seven months later, filed a chapter 11 bankruptcy petition. Despite the pending bankruptcy, the Circuit reversed the judgment in favor of buyer and released the supersedeas bond to debtor. Buyer's motions seeking various alternative relief were all denied by the bankruptcy court. On appeal, the district court denied the bankruptcy trustee's motion to dismiss, concluding that it had jurisdiction to hear both final and interlocutory bankruptcy orders, and that there was ample cause to review the bankruptcy court's decision. The district court agreed with the bankruptcy court's ruling that buyer improperly sought to establish a constructive trust on the supersedeas bond by motion instead of by adversary complaint. However, the district court disagreed that the case was "inappropriate" for such a trust, concluding that such a determination would depend on fact-findings that had not been made. The district court also concluded that the bankruptcy court had erred by failing to state reasons for denial of buyer's motion for stay relief. The case was remanded to the bankruptcy court for further proceedings.

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Opinion 211
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