Bankr. E.D.N.C.: In re Nance Properties, Inc.- Realtor's Application for Compensation following Unconsummated Sale

Summary: ECP was retained, prior to the bankruptcy filing by the Debtor, to sell certain of the Debtor's properties.  The listing agreement included a provision that the Debtor would seek to employ  ECP in the event bankruptcy was filed.   ECP was, in fact, approved by the Court to sell the properties.  Unfortunately, following the objection by the lienholder,  the sale of the properties was ultimately not approved, as it did not satisfy the requirements of 11 U.S.C. § 363(f).  ECP, nonetheless, sought compensation. The Court held the listing agreement between the Debtor and ECP provided for payment either if the sale was consummated, which it was not,  or if the Debtor was in breach of contract regarding the sale.  This turned on whether the Debtor's inability to obtain approval from the Court for this sale constituted a breach.  The Court held that the denial of the sale was "was in no way a breach by the debtor; it was simply the intervening application of law that applied to the transaction." For a copy of the opinion, please see: Nance Properties, Inc.- Realtor's Application for Compensation following Unconsummated Sale.PDF