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March 4, 1993
UNITED STATES COURT OF APPEALS
FOR THE FIRST CIRCUIT
_________________________
No. 92-1976
OAKVILLE DEVELOPMENT CORPORATION,
TRUSTEE OF THE 10-12 LOPEZ ST. TRUST,
Plaintiff, Appellant,
v.
FEDERAL DEPOSIT INSURANCE CORPORATION,
Defendant, Appellee.
_________________________
APPEAL FROM THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF MASSACHUSETTS
[Hon. Walter Jay Skinner, U.S. District Judge]
___________________
[Hon. Mark L. Wolf, U.S. District Judge]
___________________
_________________________
Before
Selya, Circuit Judge,
_____________
Bownes, Senior Circuit Judge,
____________________
and Cyr, Circuit Judge.
_____________
_________________________
SELYA,
SELYA,
Development
Circuit Judge.
Circuit Judge.
______________
Plaintiff-appellant
Oakville
challenges orders
issued by
effect of
Corporation (Oakville)
two different
allowing a foreclosure
sale to
proceed.
For
the reasons
that
was evidenced
by a
promissory note
and secured
Bank.
by a
second mortgage on
a parcel
of real property
located at
10-12
was declared
insolvent and
the Federal
Corporation (FDIC)
was appointed
as receiver.
Deposit Insurance
Oakville's loan
FDIC
creditors, setting
Because
Oakville
regarding the
The FDIC
published
notice
a 90-day deadline
was mired
in
First
American's
a dispute
aforementioned loan,
rejected Oakville's
to
with
it filed a
claim as
of claims.
First American
proof of
untimely and
claim.
refused to
See 12 U.S.C.
___
(1988).
allotted.
1821(d)(6)(A)
based on First
credit
to accept and
Oakville's
payments
were
substantially
in
It
scheduled a
foreclosure
sale for
May
20, 1992.
On May
15,
Oakville
moved to
enjoin the
proposed sale.
On
May
19, the
at a
hearing.
Accordingly, Judge
date
of August
12,
motion to
reinstate
the TRO.1
(Wolf, U.S.D.J.)
lacked
denied the
statutory authority
to grant
qua receiver.
___
took
See 18 U.S.C.
___
claims
1992.
that
time
Oakville filed
The district
FDIC
(although
an injunction
an
court
the court
against the
1821(j) (1988).
Oakville
he circulated
notices
at
the
was sold
to a
third party
and has
since changed
hands.
II
II
It
is important
merits are
stress that
the
Oakville takes
Judge Skinner's
Wolf's order
thus, allowing
to
refusing to
foreclosure sale
not before us
orders of the
order dissolving
reinstate the
the TRO
and
injunction (and,
to proceed).
this
Hence,
the
remains pending
____________________
1The motion was filed on August 11, 1992. Judge Skinner was
on vacation. In his absence, Judge Wolf presided.
below.
the
Seen in
this light, it
foreclosure
property rests
sale
with
has now
a
third
place
and
party, reversing
since
title to
the
the
orders
in
Ergo,
III of
jurisdiction
to those
"case" or "controversy."
is well established
provide
U.S. Const.
which
embody an
art. III,
effectual relief,
no justiciable
claims
as moot.
the federal
actual
2, cl. 1.
a court cannot
case remains
See Mills v.
___ _____
and the
Green, 159
_____
where, as here, a
It
and
obtain a stay.
be
enjoined actually
unable
to fashion
transpires,
the court
meaningful anodyne.
may thereafter
In
be
such straitened
Management Corp., 895 F.2d 845, 847 (1st Cir. 1990) (holding, in
_________________
analogous circumstances,
dismiss
pending
that "[a]bsent
appeal as
moot
a stay, the
because
the
court must
court has
no
is considered moot
111 S.
Ct. 1312 (1991); In re Kahihikolo, 807 F.2d 1540, 1542 (11th Cir.
________________
1987) (per
1374
curiam); Holloway
________
F.2d 1372,
662 F.2d 475, 476 (8th Cir. 1981); In re Cantwell, 639 F.2d 1050,
______________
1053-54 (3d Cir. 1981).
III
III
Appellant offers
an effort
Oakville
contends that we
voided
because
can grant
effective relief
prospective
purchasers
were
notified
of
law that
sale to
a good
faith
purchaser cannot
be
rescinded
in these circumstances.
ch. 106,
reclaim
goods
purchaser).
who
is
purchases assets
301,
to
the
Generally speaking, a
knowledge of adverse
F.2d
subject
304-05
for value,
claims.
(10th
rights
of
good
faith
is one
misconduct, or
Cir.
1983);
706
v.
____________________
2We address this argument even though the record does not
contain a copy of the supposed notice or any other specific
information as to its contents or as to the manner in which it
was distributed.
5
appeal are
rule.
not "adverse
a party
a purchaser
although
Knowledge
to a
the meaning
at 4 (holding
pending appeal,
such
of the
that a bank,
was nonetheless
a good
(5th
Cir. 1980)
knowledge
the
that
Management, 895
__________
of
good
faith
F.2d at 848
protection);
n. 4;
of the authorization to
a third-party
purchaser's
purchaser
appeal
(holding
see
___
also
____
cf. 11 U.S.C.
___
363(m)
hold a bankruptcy
by reason
(an
Stadium
_______
of having
Thus,
told likely
second
basis for
effective relief is
claiming
predicated on the
that
we could
notion that,
property.3
previously
remarked,
Oakville
appeals
only the
____________________
dissolution
refusal to
of
the
TRO
and the
reinstate it.
foreclosure
But,
district
court's
redemption assumes
subsequent
a completed
orders.
to pursue its
claimed redemptive
contemplation
of
Oakville
against
whatever
may enjoy
advisory opinions.
property was
not
What
is more,
as-yet-unexercised redemptive
would contravene
remedies.
See
___
Article III's
Holloway,
________
our
right
prohibition
789 F.2d
at
1374
a party
because
to do
so
would be
"an
also
argues
219
fastens
U.S. 498,
upon a
(1911).
recognized
its
appeal
skirts
exception to
this
asseveration
general principles
the
review."
515
that
of
915 F.2d
61, 68 (1st Cir. 1987); Anderson v. Cryovac, Inc., 805 F.2d 1, 4________
_____________
5 (1st
Cir.
1986), the
dispelling mootness
applies
only
if
exception
by mere
there
'demonstrated probability'
is
is not
invocation.
Rather,
"a 'reasonable
that the same
juju, capable
of
the exception
expectation'
or
involving
478, 482 (1982) (quoting Weinstein v. Bradford, 423 U.S. 147, 149
_________
________
(1975)).
Appellant's case
this
definition.
conceive again,
handicapped
does not
Unlike
pregnant women,
see Roe v.
___ ___
who
children, who
are
margins of
are
likely to
113, 125
likely to
(1973), or
require placement
in
305, 317-23
involvement and
shown, or even
suffering
alleged, that
FDIC's arbitrariness
even
if
this
possibility
upon
to
ensuing foreclosure.4
it has the
is
true,
claims
Cir. 1986).
narrow
Thus, appellant
confines
of
the
slightest prospect
litigate similar
has not
of
will imperil
contention
Appellant
does
is
irrelevant:
the
save a
particular
"capable of
But,
455 U.S.
repetition,
yet
the
evading
review" exception.
IV
IV
While
most
of
appellant's
claims against
the
FDIC
____________________
4The record in this
appellant owns
any other property, has any other mortgage loans, or retains any
borrowing power.
8
became
moot
when
the property
was
sold
injunctive
at
auction.
the hypothetical.
court
from
rendering
judgment
where
no
relief
prevent this
is
legally
Costs to appellee.
Costs to appellee
_________________
____________________