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United States Court of Appeals for the First Circuit
August 12, 1981, Decided
No. 80-1759, No. 80-1760, No. 80-1761
[*2] ALDRICH, Senior Circuit Judge. Alan S. Canter, Elco Resort Developers, Inc. and Greylock Glen Corporation (appellants) seek ultimately to regain possession of 1,162 acres of land situated in northwestern Massachusetts in the town of Adams. They appeal three judgments of the district court, dismissing as moot their appeals from an order of the bankruptcy court that allowed appellee Community Savings Bank to foreclose mortgages on the property. We affirm.
Each appellant owned a portion of the 1,162 acres, and together they were building on the land the Greylock Glen project, a 550 room hotel and convention center featuring a ski resort and a golf course. Community Savings Bank provided the primary funding for the project. From May, 1973 until October, 1974 the bank made seventeen loans to appellants totaling [**2] $ 3.8 million in principal. The loans were secured by mortgages which, cumulatively, encumbered the entire project site. In October funding by the bank ceased, appellants were unable to secure adequate financing elsewhere, and all work on the project halted. The golf course and ski resort had already neared completion, but only the gradings and foundation had been installed for the hotel and convention center. Since then appellants have made no payments on account of interest or taxes, and the bank has been obliged even to incur expenditures to maintain the golf course. In 1978 it commenced foreclosure proceedings. Appellants responded with petitions seeking protection under the reorganization provisions of the bankruptcy laws, the corporate debtors filing under Chapter XI and Canter under Chapter XII. As a result, the bank was automatically stayed from proceeding with the foreclosures. Rules Bankr. Proc. 11-44(a); 12-43(a).
A month later, the bank instituted adversary proceedings against each of the debtors, seeking to lift the automatic stays and to foreclose the mortgages. See Rules Bankr. Proc. 11-44(d); 12-43(d). Appellants again responded, this time by filing counterclaims [**3] to extinguish and recoup the mortgages, advancing what the bank has termed "the meritless but now fashionable" argument that the bank breached an oral promise to loan appellants $ 32 million. In 1979 appellants attempted to withdraw the counterclaims from the bankruptcy court and to assert them in state court. The bankruptcy court enjoined them from doing so and retained summary jurisdiction over the counterclaims. Appellants failed timely to appeal the jurisdictional issue.
Full case includes Shepard's, Headnotes, Legal Analytics from Lex Machina, and more.
656 F.2d 1 *; 1981 U.S. App. LEXIS 18563 **; 8 Bankr. Ct. Dec. 597
GREYLOCK GLEN CORPORATION, PLAINTIFF, APPELLANT, v. COMMUNITY SAVINGS BANK, DEFENDANT, APPELLEE. ALAN S. CANTER, PLAINTIFF, APPELLANT, v. COMMUNITY SAVINGS BANK, DEFENDANT, APPELLEE. ELCO RESORT DEVELOPERS, INC., PLAINTIFF, APPELLANT, v. COMMUNITY SAVINGS BANK, DEFENDANT, APPELLEE.
Prior History: [**1] APPEALS FROM THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MASSACHUSETTS. [HON. FRANK H. FREEDMAN, U.S. District Judge].
bankruptcy court, district court, per acre, mortgages, moot, good faith purchaser, golf course, appeals, counterclaims, appellants', foreclosure, resort, ski
Civil Procedure, Preliminary Considerations, Jurisdiction, General Overview, Justiciability, Mootness, Real Controversy Requirement, Bankruptcy Law, Administrative Powers, Automatic Stay, Judicial Review, Contracts Law, Personal Property, Bona Fide Purchasers, Real Property Law, Bankruptcy, Sales, Procedural Matters, Judicial Review, Bankruptcy Appeals Procedures