Unpublished Disposition, 911 F.2d 738 (9th Cir. 1990)

MEMORANDUM^** 

Thomas Barrett, Nominee for Clark Jackson, appeals from the district court's dismissal of his appeal from a bankruptcy court order allowing the trustee of the bankruptcy estate of Pamdra Development, Inc. to sell property in which Barrett claims an interest. We have jurisdiction pursuant to 28 U.S.C. § 158. We affirm.

Because the property at issue in this appeal has already been sold, the district court dismissed the appeal on the ground that the case was moot. Barrett admits that the property has been sold, but claims that the case is not moot because the City of Phoenix, Arizona purchased the property in bad faith. Specifically, Barrett claims that the City participated in the sale proceedings and knew of Barrett's objections as to the value and ownership of the property and as to whether the sale was in the estate's best interests.

When an appellant fails to obtain a stay from a bankruptcy court's order permitting sale of her assets and the assets are sold while the appeal is pending, the appeal becomes moot. In re Onouli-Kona Land Co., 846 F.2d 1170, 1171 (9th Cir. 1988). This rule applies only where the purchaser bought the property in good faith. Id. at 1173. Lack of good faith consists of "fraud, collusion ... or an attempt to take grossly unfair advantage of other bidders." Id. (quoting In re Suchy, 786 F.2d 900, 902 (9th Cir. 1985)). Good faith does not depend on value, nor must the bankruptcy court make a specific finding of good faith. Id. at 1174. Knowledge of claims asserted in a pending appeal does not deprive a purchaser of good faith status. Miami Center Ltd. Partnership v. Bank of New York, 838 F.2d 1547, 1554 (11th Cir.), cert. denied, 109 S. Ct. 69 (1988). The City's conduct in the instant case does not constitute bad faith. Therefore, because the property at issue in the instant appeal has been sold, this appeal is moot. See Onouli-Kona Land Co., 846 F.2d at 1173.

AFFIRMED.