Opinion ID: 6082964
Heading Depth: 3
Heading Rank: 3

Heading: District Court Affirms

Text: Su appealed the sale of the C Whale and the good faith determination. Specifically, he argued that the bankruptcy court lacked jurisdiction to sell the C Whale free and clear of his patent rights because there was no bona fide dispute as to the validity of the patent which would have conferred jurisdiction. The district court did not address the bona fide dispute argument. Instead, it determined the sale was a core bankruptcy proceeding that conferred jurisdiction. And, the court held that in any event, the appeal was moot under Section 363(m) of the Bankruptcy Code because Su had neither obtained a stay of the sale of the C Whale nor shown that the bankruptcy court clearly erred in determining that Pacific Orca did not act in bad faith. The district court independently reviewed the record and found that “[n]o evidence exists of bad faith in the bidding and sale.” This appeal followed.