H & H Fast Properties Inc. v. Toorak Capital Partners LLC - Appeal of Bankruptcy Order
Summary
The U.S. District Court for the Northern District of Illinois dismissed an appeal filed by H & H Fast Properties Inc. against an order enforcing a settlement agreement with Toorak Capital Partners LLC. The dismissal was based on the mootness of the appeal after H&H complied with the bankruptcy court's order and the bankruptcy case was subsequently dismissed.
What changed
The U.S. District Court for the Northern District of Illinois has dismissed an appeal filed by H & H Fast Properties Inc. (H&H) concerning a bankruptcy court order that enforced a settlement agreement with Toorak Capital Partners LLC. The appeal, docketed as 1:25-cv-06564, was deemed moot because H&H eventually complied with the bankruptcy court's directive to submit a Rule 9019 motion for settlement approval, which was subsequently granted. The bankruptcy case itself was also dismissed.
This ruling means H&H's attempt to appeal the enforcement order is no longer valid. The practical implication is that the original settlement agreement is now binding, and the bankruptcy proceedings have concluded, including the dismissal of H&H's case and a bar against future bankruptcy filings. No specific compliance actions are required from external parties as this is a resolution of a specific legal dispute.
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Feb. 13, 2026 Get Citation Alerts Download PDF Add Note
H & H Fast Properties Inc. v. Toorak Capital Partners, LLC
District Court, N.D. Illinois
- Citations: None known
- Docket Number: 1:25-cv-06564
Precedential Status: Unknown Status
Trial Court Document
UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION
H & H Fast Properties Inc.,
Appellant/Debtor
No. 25 CV 6564
v.
Judge Lindsay C. Jenkins
Toorak Capital Partners, LLC,
Appellee.
MEMORANDUM OPINION AND ORDER
H&H Fast Properties (“H&H”) appeals a bankruptcy court order granting
Toorak Capital Partners’ (“Toorak”) motion to enforce a settlement agreement. [Dkt.
1.]1 For the following reasons, the appeal is dismissed as moot.
I. Background
Prior to the underlying bankruptcy case here, Toorak initiated a mortgage
foreclosure action against an H&H principal in state court and in response, H&H
filed for Chapter 11 bankruptcy in 2023. Approximately a year later, H&H and
Toorak entered into a preliminary settlement agreement, and H&H submitted an
unexecuted copy of that agreement for the bankruptcy court’s approval through a
Fed. R. Bank. R. 9019 motion. After H&H withdrew that motion, however, Toorak
moved the bankruptcy court to enforce the settlement. On June 11, 2025, the
bankruptcy court entered an order enforcing settlement, requiring H&H to submit a
new Rule 9019 motion within 21 days. See In re H & H Fast Props. Inc., 2025 WL
1649540 (Bankr. N.D. Ill. June 11, 2025). H&H did not comply with that deadline
and instead appealed that order to this court. Meanwhile, Toorak filed a motion for a
rule to show cause and for sanctions against H&H for its failure to comply.
On September 9, 2025, the U.S. Bankruptcy Trustee moved the bankruptcy
court to either convert H&H’s bankruptcy case into a Chapter 7 action, or to dismiss
it. On January 21, 2026, H&H filed an amended Rule 9019 motion that complied with
the bankruptcy court’s earlier order to enforce settlement and the bankruptcy court
approved the fully executed settlement agreement. [Dkt. 21-1 at 48–79.] It then
granted the Trustee’s motion to dismiss the bankruptcy case in a written order that
also barred H&H from filing for bankruptcy relief under all chapters of the
1 Citations to docket filings generally refer to the electronic pagination provided by
CM/ECF, which may not be consistent with page numbers in the underlying documents.
Bankruptcy Code for two years under 11 U.S.C. § 349 (a). [See Dkt. 19-1; Dkt. 21-1 at
12–47; Dkt 23.]
II. Discussion
There is no doubt that jurisdiction is determined at the time the notice of
appeal is filed, something H&H observes in its brief. [Dkt. 20 at 3–4.] This
requirement for jurisdiction remains “throughout the pendency of an action, not just
at the time a case is filed.” Bd. of Educ. of Downers Grove Grade Sch. Dist. No. 58 v.
Steven L., 89 F.3d 464, 467 (7th Cir. 1996). Generally, when a bankruptcy proceeding
is dismissed, all related proceedings are automatically dismissed. See, e.g., In re
Statistical Tabulating Corp., Inc., 60 F.3d 1286, 1289 (7th Cir. 1995). An appeal
becomes moot “when, because of an intervening event, the court cannot grant any
effectual relief whatever in favor of the appellant.” Finch v. Treto, 82 F.4th 572, 578 (7th Cir. 2023). That is the case here.
The bankruptcy court has now approved a fully executed settlement agreement
between the parties and dismissed the Chapter 11 bankruptcy case. [See Dkt. 21-1 at
12–89; Dkt. 23.] Specifically, on January 21, H&H signed the settlement agreement,
and the bankruptcy court dismissed the rule to show cause because the agreement in
issue has been signed. [Dkt. 21-1 at 75.] That set of events renders this appeal moot.
H&H resists this conclusion, but none of its arguments are persuasive. First,
H&H’s supplemental brief was filed before the bankruptcy court acted on January
21. [Dkt. 20.] H&H urged this court to issue a ruling on the appeal before the motions
pending before the bankruptcy court were set to be resolved on January 21. [Dkt. 20
at 7–8 (explaining that any dismissal order had not yet taken effect and urging this
court to issue a ruling before the January 21 hearing).] But now that the bankruptcy
court has approved the executed settlement agreement, dismissed the bankruptcy
case, and vacated the show cause request, this appeal is now moot.
Second, as Toorak observes, instead of signing the settlement agreement, H&H
could have continued to refuse to comply with the bankruptcy court’s order and
appealed any order issued in response to the motion to show cause for refusal to
comply. See In re Bullock, 986 F.3d 733, 734 (7th Cir. 2021) (affirming a dismissal for
mootness “because [appellant] complied with the very order … that he now seeks to
challenge and because his underlying bankruptcy case was dismissed”). Instead, it
complied with the bankruptcy court’s instructions and filed an executed settlement
agreement. “Debtor pursued none of these available litigation routes and cannot now
reverse course.” Id. at 737. The bankruptcy court’s dismissal order is now final. That
moots this appeal.
H&H argues that this court can still provide relief even “if the dismissal order
eventually becomes effective” because this court can “invalidate the legal basis for the
Rule to Show Cause proceedings,” something that would also impact the two-year
filing ban the bankruptcy court imposed on H&H. [Dkt. 20 at 7–8.] This argument is
a non-starter. H&H voluntarily agreed to the terms of the settlement by signing the
agreement and the motion to show cause was dismissed. [Dkt. 21-1 at 75.] There is
nothing for this court to reverse.
Nor is this court positioned to provide relief from the filing ban imposed by the
bankruptcy court. The case H&H cites in support, United States v. Buchman,
observed only that “the possibility of financial adjustments among the parties keeps
a proceeding alive even if the sale cannot be upset.” 646 F.3d 409, 411 (7th Cir. 2011).
Here, the filing ban was imposed by the bankruptcy court in an order that is not the
subject of H&H’s notice of appeal in this case. [Dkt. 1 at 2 (noticing the appeal to
bankruptcy court docket entries that granted the motion to enforce).] There is no
relief for this court to provide.
III. Conclusion
Because there remains no case or controversy on which relief could be granted,
the court dismisses H&H Fast Properties’ appeal.
Enter: 25-cv-6564
Date: February 13, 2026 __
Lindsay C. Jenkins
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