Robert F. Dallas v. S.A.G., Inc., D/B/A the Toy Store, in Re S.A.G., Inc., D/B/A the Toy Store, William N. Owen v. Rufus C. Brock

HILL, Circuit Judge:

This case involves two separate claims in the United States Bankruptcy Court for the Southern District of Alabama for relief from the automatic stay imposed by 11 U.S.C. § 362. The bankruptcy court denied relief from the stay in both actions, and the district court affirmed. 1 Because we find that the bankruptcy court inappropriately placed the burden of proof on the claimants, and inaccurately applied the law of Alabama, we reverse the decision of the district court and remand the case for further proceedings.

I FACTS

The debtor, S.A.G., Inc. d/b/a The Toy Store, filed a…