⚖ Oral Arguments, with Context

A foreclosure bidder asks to revive a sale undone by a last-minute bankruptcy filing. Three Arch Capital Management made the winning bid on a Laguna Beach property in October twenty twenty-five. Creditors had just filed involuntary bankruptcy petitions against the owners of ten related properties. Those are creditor-initiated cases, rather than voluntary filings by the owners. Bankruptcy's automatic stay generally halts foreclosures. Three Arch received its money back without getting a deed to the property. The court later retroactively validated nine other sales to the lender, Enterprise Bank and Trust, but not this one. Three Arch's own request for retroactive relief was denied. Lifting the stay prospectively allows future action; annulling it can validate a past transaction that was otherwise void. Under Section three sixty-two, d, one, the court balances fairness and circumstances rather than simply matching outcomes in related sales. Lawrence Mudgett, of Safer Law, will ask the panel for a new hearing, saying the judge failed to apply that balancing test. Alan Nahmias will defend Enterprise, arguing that the original sale was undone and that summary bankruptcy proceedings are not the place to resolve ownership disputes between non-debtors.

In re Duplex at Sleepy Hollow, LLC (No. 26-1074) — U.S. Bankruptcy Appellate Panel for the Ninth Circuit, argued October 15, 2026.