Appeals Court Upholds Sale of Bankrupt Woman’s Legal Claims

An Arkansas woman’s failure to seek pause of a bankruptcy court sale of state court claims stemming from a fight with a former employer renders her challenge of the sale moot, a federal appeals court said.

Chapter 7 debtor LaDonna Humphrey lost the ability to pursue an appeal from a trustee’s $12,500 sale of her state court legal claims to a pediatric therapy center and its owner, whom she had accused of committing Medicaid fraud, the US Court of Appeals for the Eighth Circuit said in a ruling Tuesday.

Section 363(m) of the bankruptcy code moots any challenge to an ...