Fourth Circuit issues statutory mootness decision

In In re Rare Earth Minerals, the Fourth Circuit considered the "statutory mootness" of an appeal challenging a bankruptcy court's authorization of the assumption and sale of an oil and gas lease. Under Section 363(m) of the Bankruptcy Code, appellate courts are restricted from undoing to the authorized sale of estate assets to a good faith purchaser unless the sale has been stayed pending appeal. Because the Plaintiff failed to obtain such a stay, the Fourth Circuit affirmed the district court's dismissal of the appeal as moot.