Judge Arthur Spatt
A building improved debtor MA Salazar Inc.'s (Salazar) parcel in the Village of Atlantic Beach. Its 2011 Chapter 11 application stayed action to enjoin the building's demolition as unsafe premises. In addition to barring entry or residence, bankruptcy court's Oct. 21, 2011, "Fence Order" required Salazar to take steps necessary to remove the building. Bankruptcy court's Nov. 28 order granted the village's motion to vacate the stay against the building's demolition. The building was demolished on Nov. 30. On Dec. 27, bankruptcy court entered an order vacating the automatic stay. In June 2012, bankruptcy court denied Salazar's Jan. 16 motion under 11 USC §§362(a) and (k) for sanctions against the village for violating the automatic stay. On July 18 bankruptcy court declined to award sanctions. Salazar's bankruptcy petition was dismissed on July 20. District court only partly granted Salazar's appeal of bankruptcy court's denial of sanctions. It ordered bankruptcy court to clarify whether it lifted the automatic stay or whether the stay never existed. The court also reversed bankruptcy court's finding that the building's demolition did not violate the Fence Order's specific prohibition against "any person to enter, remain or reside on [Salazar's] property."
