Bankr. L. Rep. P 68,044 Mid City Management Corp. v. Loewi Realty Corporation

TATE, Circuit Judge:

This Texas diversity action raises on appeal the issue of the validity of a foreclosure sale by state proceedings held in contravention of a federal bankruptcy court stay order. The stay was subsequently declared by a federal circuit court to have been issued without statutory authorization. The essential issue is whether, under state (Texas) law, the foreclosure sale is valid. No issue of federal bankruptcy law is implicated, because, in the federal bankruptcy proceedings, the validity of the sale was subsequently recognized by the bankruptcy judge. Finding the sale to…