IN RE STANFORD
In In re Stanford, the United States Court of Appeals for the Eleventh Circuit held that an appeal from a completed sale of property authorized by the bankruptcy court—but not necessarily proper under the Bankruptcy Code—was statutorily moot under 11 U.S.C. § 363(m). In affirming the United States District Court for the Northern District of Alabama’s dismissal, the Eleventh Circuit reasoned that because credit bids are a practice authorized by the Code under § 363(k), and because the appellants challenged a specific use of the practice instead of the practice of the credit bid practice generally, § 363(m) applied to the debtors’ appeal. Thus, the appeal was statutorily moot because (1) the debtors filed to attain a stay of the sale from the bankruptcy court, and (2) the creditor was a “good faith purchaser” under the Bankruptcy Code.