Summary
The United States District Court for the District of Utah dismissed Max W. Barber’s appeal as moot after the property subject to an order granting in rem relief from the automatic stay was sold at foreclosure and title was conveyed to Canyon View Federal Credit Union. The court vacated its prior dismissal order because the appeal was already moot when that order was entered and denied Barber’s motion for rehearing as moot.
Topics
Practice areas
Questions Presented
- Whether Barber's appeal from the bankruptcy court's order granting relief from the automatic stay became moot after Barber failed to obtain a stay pending appeal and the property was sold at foreclosure.
- Whether the district court's prior dismissal order should be vacated because the appeal was already moot when that order was entered.
- Whether Barber's motion for rehearing should be granted.
Holdings
- An appeal of an order granting relief from the automatic stay becomes moot when the debtor fails to obtain a stay pending appeal and the creditor conducts a foreclosure sale, because the appellate court cannot grant effective relief.
- The prior dismissal order should be vacated because the appeal was already moot when the dismissal order was entered.
- The motion for rehearing was denied as moot.
Key quotations
“A case is moot when it is impossible for the court to grant any effectual relief whatever to a prevailing party.” (2)
“This Court is powerless to rescind the foreclosure sale.” (2)
Factual background
The bankruptcy court granted Canyon View in rem relief from the automatic stay as to property at 4643-4645 South Highland Drive in Salt Lake City, Utah. Barber appealed but did not obtain a stay of the order pending appeal. The property was sold at a foreclosure sale on January 23, 2026, and a trustee's deed was recorded conveying title to Canyon View.
Procedural history
Barber appealed the bankruptcy court's order granting Canyon View relief from the automatic stay concerning real property. He did not obtain a stay pending appeal, and the property was sold at foreclosure on January 23, 2026; a trustee's deed conveying title to Canyon View was subsequently recorded. The district court dismissed the appeal on February 9, 2026, and, on Barber's motion for rehearing, dismissed the appeal as moot, vacated the prior dismissal order, and denied rehearing as moot.