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Jorgenson v. State Line Hotel, Inc.
Citation: 242 F. App'x 460Docket: No. 05-15906
Court: Court of Appeals for the Ninth Circuit; July 5, 2007; Federal Appellate Court
Suzanne F. Jorgenson's appeal from the Bankruptcy Appellate Panel (BAP) is rendered moot due to the confirmation of a bankruptcy plan for State Line Casino and the distribution of all its assets, resulting in full payment to all creditors with allowed claims. The bankruptcy court officially closed State Line Casino’s bankruptcy on March 31, 2005, meaning that the entity no longer exists and no effective relief can be granted to Jorgenson. This situation is consistent with precedents indicating that bankruptcy appeals may be rendered constitutionally moot when circumstances prevent the appellate court from providing relief. As Jorgenson's appeal became moot without any action on her part, the court's general practice is to vacate the judgments of both the BAP and bankruptcy court. Accordingly, the court vacated the BAP's judgment and remanded the case with instructions to vacate the bankruptcy court's judgment and dismiss the case. Jorgenson's arguments against the appeal's mootness, specifically regarding potential payments from other corporate debtors, were rejected as she had only claimed against State Line Casino, and there was no evidence linking any available funds to that entity. The court distinguished this case from In re Dynamic Brokers, Inc., where there had been ongoing payments that could be adjusted, which is not applicable here due to the completed distribution of assets. The appeal is dismissed as moot, and the disposition is not intended for publication or as precedent.