Opinion ID: 3020376
Heading Depth: 2
Heading Rank: 1

Heading: facts

Text: The background of the underlying action is extensive and well-known to the parties, and thus we will only summarize the necessary facts for the appeals before us. Syed Raza identifies himself as the second largest creditor of Rose Color, Inc. (“Rose Color” or “debtor”), the debtor in the underlying bankruptcy action captioned In re: Rose Color, Inc., N.J. Bk. Ct. No. 03-23667. Azmat Raza alleges she is the largest equity holder of the debtor. Rose Color was a dye manufacturer, and Syed Raza served as the company president. Rose Color filed for bankruptcy protection under Chapter 11, and the appellee Donald Biase was appointed as trustee (“the Trustee”). The Trustee terminated Rose Color employees, including the Razas. The Trustee filed a notice of intention to conduct a sale of the debtor’s personal property. After a hearing, by order entered June 25, 2004, the Bankruptcy Court authorized the Trustee to conduct the public sale and denied Raza’s motion to stay the order pending appeal. No appeals were filed. Raza was not present at the public auction, and a number of items were sold. Raza later 1 Syed and Azmat Raza are husband and wife. Throughout this opinion, we will refer to Syed Raza as “Raza” or by his full name, and to Azmat Raza by her full name. 2 filed a motion to order the Trustee to disclose the result of the sale and to prohibit removal of property without court approval. By order entered August 20, 2004 (dated August 19, 2004), the Bankruptcy Court denied the motion. On September 7, 2004, the Bankruptcy Court granted the Trustee’s motion to convert the Chapter 11 matter to a Chapter 7 liquidation and denied Raza’s motion to terminate the Trustee. By order entered September 8, 2004 (dated September 3, 2004), the Bankruptcy Court granted the Trustee’s motion for approval of the Trustee’s sale of the debtor’s real property. Later, on May 5, 2005, the Bankruptcy Court approved a settlement between the Trustee and Discover, Inc.2 Raza filed notices of appeal to the District Court regarding the orders entered by the Bankruptcy Court on August 20, 2004 and May 5, 2005.3 Joseph E. Fund, Esquire, on behalf of Rose Color, filed notices of appeal regarding the Bankruptcy Court’s orders entered September 7, 2004 and September 8, 2004.4 On November 3, 2005, the District Court affirmed the Bankruptcy Court’s orders pertaining to the Trustee’s sale of the debtor’s personalty, the conversion of the proceeding to Chapter 7 2 On July 7, 2004, the Trustee had filed an adversary complaint seeking to avoid and recover pre-petition and post-petition transfers and other relief against a number of defendants, including Discover, Inc. Discover, Inc. is not a party before us. 3 These appeals were docketed in District Court as Nos. 05-cv-03437 and 05-cv04159, respectively. 4 These appeals were docketed in District Court as No. 05-cv-02291. The appeal docketed as No. 04-cv-04972 will be discussed later in this opinion. 3 liquidation, the Trustee’s sale of the debtor’s real property, and Raza’s motion to terminate the Trustee (D. N.J. Civ. Nos. 04-cv-04972, 05-cv-02291, and 05-cv-03437). Syed and Azmat Raza jointly filed a notice of appeal, docketed in this Court as C.A. No. 05-5103. On November 16, 2005, the District Court affirmed the Bankruptcy Court’s order approving the settlement between the Trustee and Discover, Inc. (D. N.J. Civ. No. 05-cv-04159).5 Raza alone filed a notice of appeal, docketed in this Court as C.A. No. 05-5383. The two appeals were consolidated. The Razas filed a motion for a stay pending appeal, which we denied.