Charlton v. Estate of Charlton

SKOPIL, Circuit Judge:

Plaintiff-appellant Richard Charlton (“Charlton”) appeals from a district court’s order permanently enjoining him from attacking a bankruptcy sale of his property. We agree with Charlton that the injunction should not have been issued without a hearing on the merits. We reverse and remand for further proceedings.

FACTS AND PRIOR PROCEEDINGS

In 1979 Charlton filed a Chapter 11 petition in bankruptcy. The bankruptcy court issued an order authorizing the sale of a major asset of the estate. On appeal, we temporarily stayed the sale of the property, *989conditioned upon Charlton s…