Court Opinion

ID: 9699283
Source: CourtListenerOpinion
Date Created: 2023-08-25 20:18:09.207194+00
Date Added: 2024-06-11T18:20:48.525459
License: Public Domain

MOOREMAN, Bankruptcy Judge,
dissenting:
I am unable to join the majority’s disposition of this case holding that this appeal is interlocutory, and would under the facts and ruling find that the appeal was not interlocutory and that the trial court below erred in not determining the issue of whether proper notice was given.
Appellant argues that without a finding that the required notice of § 363(b)(1) was given, the bankruptcy court was without jurisdiction to rule that the successful buyer was a “good faith purchaser who purchased free and clear.”
In addressing whether a sale pursuant to § 363(b)(2) was proper, it is generally recognized that the essential issues for determination are: 1) a good business purpose, 2) accurate and reasonable note, 3) an adequate price and 4) the presence of good faith. E.g., In re Copy Crafters Quickprint, Inc., 92 B.R. 973 (Bankr.N.D.N.Y. 1988). See also In re Abbotts Dairies of Pennsylvania, Inc., 788 F.2d 143, 147-50 (3rd Cir.1986).
As set forth in the majority’s Opinion, the bankruptcy court limited its ruling to the issue of whether the successful buyer had purchased the property in good faith and for “reasonable” value.4
However, as noted above, the issue of proper notice is a necessary requirement for allowing a sale pursuant to § 363(b)(1). The Appellant’s Motion to Set Aside Sale was equivalent to a Rule 60(b)(4) motion to set aside a judgment as void and, therefor, the bankruptcy court should have ruled on the factual issue of whether proper notice had been actually received by the Appellant. See In re Center Wholesale, Inc., 759 F.2d 1440, 1448 (9th Cir.1985). Without such notice, the sale is void and is subject to being set aside by the Appellant. Id. at 1451.
It is true that if the sale is void it will affect the rights of others, particularly the buyer. But these third parties will add little to the determination of whether or not proper notice was sent to the Internal Revenue Service and thus an adversary proceeding is not necessary to make this determination. Thus the trial court erred in not determining whether or not proper notice was given. Without such notice, the order granting the sale is void.
Based on the foregoing, the bankruptcy court’s order denying Appellant’s motion to set aside sale of property should be reversed and remanded for a specific finding as to whether the Appellant received proper notice of the § 363 sale of estate property, and thus I respectfully dissent.

. The Appellant does not allege that the sale of the subject property lacked a good business purpose.