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Opinion 389

Case Name: 

Utah Outdoor Advertising, Inc., v. CCI, Inc. (In re CCI, Inc.)

Judge: 
Judge Clark
Date: 
Jun-24-1996
Case Number(s): 
96PC-2044
Status: 

UNPUBLISHED

Body: 

The chapter 11 plan named a liquidating agent and vested the agent with power to sell or dispose of estate assets. The liquidating agent conducted an auction in October 1995 for the sale of the real property that is the subject matter of this adversary proceeding. Plaintiff participated in the auction as an unsuccessful bidder. At the conclusion of the auction, the liquidating agent reported to the court that Michael Todd was the successful bidder. In December 1995, the plaintiff acquired, by special warranty deed, a claim to the subject property from persons who later testified that they never claimed to own the property. The chapter 11 plan vests all property of the CCI bankruptcy estate in the liquidating agent and expressly does not re-vest the property in the debtor upon confirmation. Because the subject property was still property of the estate until March 12, 1996, it remained under the protection of the automatic stay. Therefore, execution and filing of a special warranty deed that conveyed title of the subject property to plaintiff was void and without effect. It appears from the evidence that the adversary proceeding was filed only to harass, cause unnecessary delay, or needlessly increase the cost of litigation. The adversary proceeding is dismissed and the plaintiff is ordered to pay attorney's fees and damages.

Internal Ref: 
Opinion 389
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