U. S. Bancorp Mortgage Company v. Bonner Mall Partnership (513 U.S. 18)
U.S. Supreme Court · decided November 8, 1994 · Supreme Court Database (Spaeth)
- Citation
- 513 U.S. 18 · 115 S. Ct. 386
- Decided
- November 8, 1994
- Term
- October Term 1994
- Vote
- 9–0
- Majority author
- Justice Scalia
- Issue area
- Judicial Power
- Disposition
- Petition denied or appeal dismissed
- Outcome
- Petitioning party lost
- Ideological direction
- Liberal
Opinion excerpt
Justice Scalia delivered the opinion of the Court. The question in this case is whether appellate courts in the federal system should vacate civil judgments of subordinate courts in cases that are settled after appeal is filed or certio-rari sought. I In 1984 and 1985, Northtown Investments built the Bonner Mall in Bonner County, Idaho, with financing from a bank in that State. In 1986, respondent Bonner Mall Partnership (Bonner) acquired the mall, while petitioner U. S. Bancorp Mortgage Co. (Bancorp) acquired the loan and mortgage from the Idaho bank. In 1990, Bonner defaulted on its real estate taxes and Bancorp scheduled a foreclosure sale. The day before the sale, Bonner filed a petition under Chapter 11 of the Bankruptcy Code, 11 U. S. C. § 1101 et seq., in the United States Bankruptcy Court for the District of Idaho. It filed a reorganization plan that depended on the “new value exception” to the absolute priority rule. Ban-corp moved to suspend the automatic stay of its foreclosure imposed by 11 U. S. C. § 362(a), arguing that Bonner’s plan was unconfirmable as a matter of law for a number of reasons, including unavailability of the new value exception. The Bankruptcy Court eventually granted the motion, concluding that the new value exception had not survived enactment of the Bankruptcy Code. The court stayed its order pending an appeal by Bonner. The United States…
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