Agri Star Meat & Poultry, et al. v. Nevel Properties Corp., No. 13-1161 (8th Cir. 2014)
Annotate this CaseSHF acquired the vestiges of Sholom Rubashkin's bankrupt Agriprocessors, now rebranded Agri Star. Debtor, Nevel, is owned by Rubashkin's brother. At issue on appeal was whether SHF has any rights to a well located on land owned by Nevel. The bankruptcy court concluded that SHF did not and the district court affirmed. SHF appealed and Nevel moved to dismiss the appeal based on the so-called "equitable mootness" doctrine. The court concluded that the district court did not err in concluding that SHF had no rights to the well. The bankruptcy court correctly found that SHF never acquired any rights to the well because Agriprocessors' trustee was deemed to have rejected the contract as a matter of law. Accordingly, the court affirmed the district court's judgment and denied the motion to dismiss.
Court Description: Civil case - Bankruptcy. The district court did not err in finding plaintiffs/ appellants had no right to the deep well in dispute; the plaintiffs, who purchased the bankrupt debtor's assets, never acquired any right to the well because the bankrupt debtor's trustee was deemed to have rejected the contract as a matter of law before plaintiffs acquired the assets.
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