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United States Bancorp Mortgage Co. v. Bonner Mall Partnership
United States Supreme Court
513 U.S. 18 (1994)
Northtown Investments built Bonner Mall (the mall) with financing from a bank in Idaho. In 1986 Bonner Mall Partnership (Bonner) (defendant) purchased the mall, and United States Bancorp Mortgage Co. (Bancorp) (plaintiff) acquired the loan and mortgage for the mall. In 1990 Bonner defaulted on its real estate taxes, and Bancorp planned to sell the mall in a foreclosure sale. Bonner filed for Chapter 11 bankruptcy, and the foreclosure sale was automatically stayed. Bancorp filed a motion to suspend the automatic stay, arguing that Bonner’s reorganization plan was improper. The bankruptcy court granted the motion, and Bonner appealed. The district court reversed the bankruptcy court, and the court of appeals affirmed the district court. Bancorp petitioned the United States Supreme Court to hear the case. After the Supreme Court granted certiorari, Bancorp and Bonner settled the case. Once the case was settled, the legal issue before the Supreme Court was mooted. Bancorp filed a motion asking the Supreme Court to vacate the judgment of the court of appeals.
Rule of Law
Holding and Reasoning (Scalia, J.)
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