Background
Appellant Tony Lewis sought review of a district court decision affirming a bankruptcy sale of assets under Section thirty-six three of the United States Code. Lewis raised objections regarding his alleged membership interest in the debtor entity and the timing of the sale relative to an ongoing state court suit.
The court’s reasoning
The panel unanimously concluded the case was suitable for decision without oral argument. The court found the appeal timely as the notice was filed within the required thirty-day window. Arguments concerning Lewis’s alleged membership interest and the propriety of waiting for state court proceedings were deemed waived because they were not presented to the bankruptcy court. The court further determined the sale was not an improper sub rosa plan and that the purchaser’s good faith was supported by the record.
What it means going forward
The affirmation upholds the finality of bankruptcy asset sales where procedural objections are not properly preserved below and confirms that good faith findings are reviewed for clear error.
Podcast (federal-narrative-summaries): Play in new window | Download