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Appellate Advocacy Keyed to Meador, 2nd Ed.
United States Bancorp Mortgage Co. v. Bonner Mall Partnership
Citation:
513 U.S. 18 (1994)Facts
In 1986, Bonner Mall Partnership acquired a mall in Idaho, with U.S. Bancorp Mortgage Company later acquiring the loan and mortgage. In 1990, Bonner defaulted on real estate taxes, and Bancorp scheduled a foreclosure sale. The day before the sale, Bonner filed for Chapter 11 bankruptcy protection, proposing a reorganization plan that relied on the “new value exception” to the absolute priority rule. Bancorp moved to lift the automatic stay, arguing the plan was legally unconfirmable. The Bankruptcy Court granted the motion, but the District Court reversed, and the Ninth Circuit affirmed. After the Supreme Court granted certiorari and received briefing on the merits, the parties reached a settlement agreement on a consensual reorganization plan. Bancorp then requested that the Supreme Court vacate the Ninth Circuit’s judgment despite the settlement.
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