Golfland Entertainment Centers, Inc. v. Peak Investment, Inc.

119 F.3d 852, 14 Colo. Bankr. Ct. Rep. 143, 1997 Colo. J. C.A.R. 1222, 1997 U.S. App. LEXIS 18165, 31 Bankr. Ct. Dec. (CRR) 212, 1997 WL 405342
CourtCourt of Appeals for the Tenth Circuit
DecidedJuly 21, 1997
Docket95-4171
StatusPublished
Cited by53 cases

This text of 119 F.3d 852 (Golfland Entertainment Centers, Inc. v. Peak Investment, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Golfland Entertainment Centers, Inc. v. Peak Investment, Inc., 119 F.3d 852, 14 Colo. Bankr. Ct. Rep. 143, 1997 Colo. J. C.A.R. 1222, 1997 U.S. App. LEXIS 18165, 31 Bankr. Ct. Dec. (CRR) 212, 1997 WL 405342 (10th Cir. 1997).

Opinion

HOLLOWAY, Circuit Judge.

Appellant Golfland Entertainment Centers, Inc. (Golfland) appeals from the district court’s order affirming the bankruptcy court’s vacating of a confirmed sale. We have jurisdiction over the district court’s order pursuant to 28 U.S.C. § 1291 and we affirm.

I

The facts of this appeal, which are essentially undisputed except as noted below, are as follows:

The subjects of this appeal are a water park, a storage shed, and a barn property, all located in Provo, Utah. Appellee BCD Corporation (BCD) owned the water park, and the other two properties were owned by third parties who are not parties to this appeal. See I App. at 5, 49-50. When BCD entered into Chapter 11 bankruptcy proceedings, it sought to liquidate the water park, and the storage shed and barn property came under the jurisdiction of the bankruptcy court because all three had to be sold together to satisfy Utah zoning ordinances. Id. at 50-51. Between October and December 1993, B & B Properties Co. (B & B) and BCD made a number of offers and counteroffers regarding the three properties, culminating in an agreement on December 7,1993. Id. at 5-34. The agreement noted that the bankruptcy court could approve another offer instead. Id. at 27.

BCD then sought higher and better offers than B & B’s, with such offers to be filed at least two days before a hearing on BCD’s motion to confirm the sale to B & B. Id. at 2-3. Golfland, Peak Investments, and University Properties, Inc. (UPI) submitted written offers. II App. at 574-75, 587. On February 22, 1994, BCD solicited additional offers by way of an oral auction. I App. at 390. At the oral auction, the bidders tracked the terms of UPI’s offer, which waived the conditions of closing contained in paragraph 5 of the original B & B offer. 1 Id. at 407-08. The bidding continued between Golfland and Peak Investments, with Golfland submitting the highest bid at $2.61 million. II App. at 467. Peak submitted a back-up bid of $2.2 *855 million. I App. at 373-74. The bankruptcy court confirmed the sale to Golfland orally on February 23, 1994, id. at 66, and by written order on March 28,1994. Id. at 85-87.

However, on April 7, 1994, Peak filed a motion to enforce sale to the alternative bidder, claiming, inter alia, that Golfland had changed the terms of the bid. Id. at 92. At issue was whether Golfland was demanding to be reimbursed for any environmental clean-up costs that might be incurred. Id. at 96. Golfland contended that no modification of terms had occurred. Instead, it argued that it had not waived the environmental warranties, only the conditions to closing. II App. at 685-86.

In response to this dispute, the bankruptcy court received evidence and testimony in a four-day hearing. The court’s significant oral findings which followed at the June 6, 1994, hearing were that:

All of the written offers track the B & B offer except that of University, which waived nearly all of the conditions.
At the auction, University agreed that that included most of paragraph 5 of the B & B offer. Everyone at the offer believed that the risk of environmental problems on the property being purchased was thereby shifted to the buyer.
Thereafter, a dispute arose between the sellers and Golfland about the terms of the sale. The sellers agreed to make the following concessions to Golfland. Among others they were that the sellers would bear up to $200,000 of the costs of environmental remediation and one half of a $33,-000 bond, which had been filed to meet the requirements of the City of Provo.
Mr. Monson, the attorney documenting the transaction for the sellers, wanted to attach to the order a document showing what the offer was, but because the parties couldn’t agree just referred to the offer made at the sale.
In this case the terms were not disclosed to the court. The terms that the parties thought they were bargaining on and bidding on turn out not to be the terms of the sale which is ultimately proposed to the court. The court didn’t have the opportunity to give that vital protection because the court didn’t have the information that it needed. The parties didn’t have the information they needed to make appropriate objections and arguments. That part of the notice and hearing requirement for the sale of property simply was not met.

II App. at 789-91 (emphasis added).

The bankruptcy court’s written order vacated the confirmed sale to Golfland, stating in part that

1. The sale to Golfland is not a sale which has been approved by the Court, and that sale is, therefore, not authorized.
2. The major changes in the terms of the sale did not give the bidders a fair opportunity to bid at the sale and the notice and further proceedings did not give the Court an opportunity to make a reasoned decision about whether or not to approve the sale and other parties an opportunity to properly object.
3. The Order Approving Sale of Property Free and Clear of Liens, Interests and Encumbrances dated March 31, 1994, is hereby set aside.
4. The Debtor is ordered not to proceed with a final sale of the water park property without further order of the Court.
DATED this 6 day of July, 1994.

II App. at 807.

The district court affirmed the bankruptcy court’s decision, concluding that the bankruptcy court’s finding of a mistake in the sale was supported by the record and was legally sufficient to set aside the sale. Id. at 1015-16. This appeal followed.

After the filing of the notice of this appeal, but before oral argument to this court occurred, BCD sold the water park and adjacent properties to BTS with a high bid of $3.6 million in a second sale. See Aple. Trustee’s Reply to Appellant’s Memorandum of Points and Authorities and Authorities in Opposition to Appellee’s Motion for Summary Disposition, Ex. J, at 2; id. at Ex. K, at *856 2. 2 Golfland did not seek a stay of this second sale to BTS; Golfland argues that its “decision not to seek a stay of the sale to BTS was based, in part, upon the representations of the Debtor [BCD] and the Bankruptcy Court that Golfland’s interest would attach to such proceeds.” See Aplt. Memorandum of Points and Authorities in Opposition to Appellee’s Motion for Summary Disposition, at 10. Arguing that the property which is the subject of this appeal has been sold to a good faith purchaser, BCD has moved to dismiss as moot this appeal from the order vacating the first sale to Golfland, which led to the second sale to BTS.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Jaramillo v. Dill
Tenth Circuit, 2021
Anderson v. West
604 F. App'x 735 (Tenth Circuit, 2015)
Anderson v. West (In re Anderson)
604 F. App'x 735 (Tenth Circuit, 2015)
United States v. Melot
606 F. App'x 930 (Tenth Circuit, 2015)
Royal v. First Interstate Bank (In Re Trierweiler)
570 F. App'x 766 (Tenth Circuit, 2014)
Rushton v. ANR Company
Tenth Circuit, 2014
In re C.W. Mining Co.
740 F.3d 548 (Tenth Circuit, 2014)
Royal v. First Interstate Bank (In re Trierweiler)
484 B.R. 783 (Tenth Circuit, 2012)
Search Market Direct, Inc. v. Jubber (In Re Paige)
685 F.3d 1160 (Tenth Circuit, 2012)
In RE QuVIS, INC.
469 B.R. 353 (D. Kansas, 2012)
C.O.P. Coal Development Co. v. C.W. Mining Co.
641 F.3d 1235 (Tenth Circuit, 2011)
Sutton v. Weinman Ex Rel. Centrix Liquidating Trust
394 F. App'x 485 (Tenth Circuit, 2010)
In Re Donohue
410 B.R. 311 (D. Kansas, 2009)

Cite This Page — Counsel Stack

Bluebook (online)
119 F.3d 852, 14 Colo. Bankr. Ct. Rep. 143, 1997 Colo. J. C.A.R. 1222, 1997 U.S. App. LEXIS 18165, 31 Bankr. Ct. Dec. (CRR) 212, 1997 WL 405342, Counsel Stack Legal Research, https://law.counselstack.com/opinion/golfland-entertainment-centers-inc-v-peak-investment-inc-ca10-1997.