Kanyon Holdings, LLC v. Kevin Dandurand
CourtUnited States Bankruptcy Appellate Panel for the Eighth Circuit
Date FiledAugust 10, 2026
Docket25-6010
StatusPublished
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Full Opinion
United States Bankruptcy Appellate Panel
For the Eighth Circuit
______________________________
No. 25-6010
______________________________
In re: Kevin P. Dandurand
Debtor
------------------------------
Kanyon Holdings, LLC
Creditor - Appellant
v.
Kevin P. Dandurand
Debtor - Appellee
________________
Appeal from United States Bankruptcy Court
for the District of South Dakota
____________
Submitted: May 21, 2026
Filed: August 10, 2026
____________
Before SURRATT-STATES, FENIMORE, AND CLAIR, Bankruptcy Judges.
____________
FENIMORE, Bankruptcy Judge.
Appellant Kanyon Holdings, LLC appeals the bankruptcy court’s 1 orders (1)
granting Appellee Kevin Dandurand’s motion to reject a stock purchase agreement
with Kanyon and (2) denying Kanyon’s motion for relief from the automatic stay.
Dandurand asks the panel to dismiss this appeal due to postappeal events that he
asserts both eliminated Kanyon’s appellate standing and rendered this appeal moot.
For the following reasons, we deny Dandurand’s motion to dismiss and affirm the
bankruptcy court’s orders on the merits.
BACKGROUND
This appeal continues Kanyon’s pre-bankruptcy effort to obtain a controlling
interest in Dandurand’s wholly owned snack food production corporation,2 Dakota
Style Foods, Inc. (DSF). Dandurand purchased DSF in 1998 3 and operated it
profitably for almost twenty years. 4 Kanyon and its parent company run a private
equity firm that invests primarily in real estate and operating businesses.5
In early 2023, Kanyon’s CEO, Payton Smith, mailed Dandurand two letters
to communicate Kanyon’s interest in purchasing DSF.6 After some exploratory
meetings and discussions,7 Dandurand’s desire to sell DSF to Kanyon became
1
The Honorable Laura L. Kulm Ask, Chief Bankruptcy Judge, United States
Bankruptcy Court for the District of South Dakota.
2
Tr. Mar. 27, 2025, Evidentiary Hr’g 10:7–9, In re Dandurand, No. 24-40401
(Bankr. D.S.D. June 15, 2025), Dkt. No. 217 [hereinafter Hr’g Tr.].
3
Hr’g Tr. 51:12–13.
4
See Hr’g Tr. 53:10–20 (discussing DSF’s growth).
5
Hr’g Tr. 157:23–158:2.
6
Hr’g Tr. 13:11–20, 158:5–12.
7
Hr’g Tr. 14:3–15:21.
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urgent.8 Among other financial pressures,9 DSF’s sunflower seed supplier,
Advanced Sunflower, was threatening to withhold shipments until DSF reduced the
balance it owed to Advanced Sunflower. 10 Motivated by the need to pay Advanced
Sunflower and other vendors as soon as possible, Dandurand pressed Kanyon to
hasten the transaction. 11
In apparent response to Dandurand’s pressure, 12 Smith emailed a DSF
representative to suggest a “total buyout” for $1.037 million. 13 Dandurand’s team
counteroffered with $1.7 million.14 Smith quickly responded that Kanyon “[didn’t]
see the possibility of any cash changing hands now,” but if Dandurand agreed to sell
DSF to Kanyon for $1.00, and other events occurred, Kanyon “would exercise [its]
option buying the shares, and inject the required capital into the business.”15
Dandurand testified that the parties had multiple phone calls after Smith’s email,
during which “Smith made several commitments to [Dandurand]” concerning DSF’s
debts to its vendors. 16 At the conclusion of those phone calls, Dandurand signed a
8
Hr’g Tr. 16:2–5.
9
Hr’g Tr. 59:14–60:3.
10
Hr’g Tr. 16:2–17:16, 60:21–62:15.
11
Hr’g Tr. 16:2–17:16, 63:2–5.
12
Hr’g Tr. 63:15–21 (testifying about communications during “brief meeting”
following April 19 facility tour), 66:12–21 (describing Smith’s April 19 offer).
13
April 20, 2023, 11:03 a.m. Email String Payton Smith to Kevin Dandurand
et al. (State Ct. Bates ID Kanyon 000099) Ex. D1, at 2, In re Dandurand, No. 24-
40401 (Bankr. D.S.D. Apr. 10, 2025), Dkt. No. 163 [hereinafter Apr. 20 Email
String]; Hr’g Tr. 66:12–21.
14
Apr. 20 Email String, at 1; Hr’g Tr. 67:7–17.
15
Apr. 20 Email String, at 1; Hr’g Tr. 67:24–68:16.
16
Hr’g Tr. 69:8–16, 77:12–78:3.
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Stock Purchase Agreement (SPA),17 agreeing to sell 90% of his interest in DSF to
Kanyon at closing, to refrain from competing with DSF or soliciting any DSF
employees for two years from the date of closing, and to fulfill other substantial
obligations before and after closing. 18
Though the parties agree that the SPA imposed substantial obligations on
Dandurand, 19 they disagree about the scope of Kanyon’s obligations under the SPA.
Dandurand argues that Kanyon agreed to fulfill obligations beyond paying $1.00 in
exchange for 90% of Dandurand’s shares in DSF, including paying Advanced
Sunflower and other DSF vendors. Kanyon, in contrast, maintains that its only
obligation was to pay the $1.00 purchase price. Though certain covenants in the
SPA are ambiguous, the agreement does not facially require Kanyon to comply with
the additional obligations Dandurand identifies.
Almost immediately after the parties signed the SPA, Dandurand began
pressuring Kanyon to fulfill its alleged preclosing commitments, including paying
17
Hr’g Tr. 69:5–7.
18
See Stock Purchase Agreement Ex. K6, at 1, 5, 16–20, In re Dandurand, No.
24-40401 (Bankr. D.S.D. Apr. 10, 2025), Dkt. No. 163 [hereinafter Stock Purchase
Agreement] (imposing various obligations on Dandurand as seller).
19
Appellant’s Principal Br. 46 (“[A]s of the petition date, the only
performance remaining under the SPA was on [Dandurand’s] side.”); Appellee’s
Principal Br. 25 (“The lower court properly found that the [SPA] was executory
because there were unperformed duties on both sides . . . .”).
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DSF’s vendors 20 and taking other preclosing steps. 21 When Kanyon declined to
make preclosing payments, Dandurand attempted to rescind. 22 Kanyon resisted.23
Counsel for Dandurand then received a letter from Kanyon stating that closing
would occur more than two months earlier than the originally scheduled closing
date. 24 The letter also waived all the conditions to Kanyon’s obligation to close.25
20
See, e.g., Hr’g Tr. 77:21–78:3 (“Are you paying Advanced Sunflower? . . .
[H]is response was, we’re working on it . . . . And I said . . . that wasn’t the
agreement. The agreement was you were going to pay Advanced Sunflower seed.”);
April 24, 2023, 18:32 Email String Kevin Dandurand to Payton Smith et al. (State
Ct. Bates ID Kanyon 000039) Ex. D3, at 1, In re Dandurand, No. 24-40401 (Bankr.
D.S.D. Apr. 10, 2025), Dkt. No. 163 [hereinafter Apr. 24 Email String] (“If we can’t
get the film company [$]208k to loosen them up the plant will shut down completely
by the latest next week.”).
21
April 27, 2023, 22:45 Email String Kevin Dandurand to Jared Gass et al.
(State Ct. Bates ID 000027) Ex. D4, at 1, In re Dandurand, No. 24-40401 (Bankr.
D.S.D. Apr. 10, 2025), Dkt. No. 163 (“I would like to have in writing exact detail
on how you plan to invest funds into the company. What happens if the real estate
plan doesn’t work out . . . ? Also your plan to pay my personal company loans as
well as buy out my interest. Employee plans for healthcare and equity, etc.
Employment contracts for key personnel . . . .”).
22
Hr’g Tr. 77:14–78:12.
23
Hr’g Tr. 78:11–79:23.
24
May 3, 2023, Letter to Zach Crane Re: Waiver Conditions Close Ex. K9, at
1, In re Dandurand, No. 24-40401 (Bankr. D.S.D. Apr. 10, 2025), Dkt. No. 163
[hereinafter Waiver Letter].
25
Waiver Letter, at 1.
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Kanyon appeared at closing “ready, willing and able to close the transaction,” 26 but
Dandurand did not appear.27 Closing never occurred. 28
Shortly thereafter, Kanyon served Dandurand with a state court lawsuit,29
seeking specific performance of the SPA, damages for Dandurand’s alleged breach
of the agreement, and other relief.30 Dandurand answered, counterclaimed, and filed
motions to dismiss that the state court subsequently denied. 31 Dandurand’s state-
court counsel estimated that the parties accomplished approximately “30 percent of
the work” necessary to complete the state-court litigation. 32
Meanwhile, Dandurand’s personal finances were deteriorating. He had
already spent more than $200,000 to litigate against Kanyon, 33 with an additional
$400,000 to $500,000 in legal fees looming.34 He cut his personal salary in half,35
and then completely stopped taking a salary. 36 He used personal credit cards to keep
26
Hr’g Tr. 168:17–169:7.
27
Hr’g Tr. 115:11–13.
28
See Hr’g Tr. 87:19–20 (“I wasn’t going to close.”).
29
Hr’g Tr. 125:2–9.
30
Am. State Ct. Compl. Ex. D13, at 16–18, In re Dandurand, No. 24-40401
(Bankr. D.S.D. Apr. 10, 2025), Dkt. No. 163 [hereinafter State Ct. Compl.].
31
Hr’g Tr. 20:5–21:1.
32
Hr’g Tr. 141:2–6.
33
Hr’g Tr. 95:2–6.
34
Hr’g Tr. 141:22–24.
35
Hr’g Tr. 41:14–20, 92:4–5.
36
Hr’g Tr. 96:19–97:2.
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DSF afloat 37 and incurred new debt to pay existing debts. 38 He began paying only
the minimum balances due on his credit cards.39 Though Dandurand met with
bankruptcy counsel in mid-2023, he did not file a bankruptcy petition at that time.40
By December 2024, however, Dandurand realized he needed to “bring an end”
to the state-court litigation and his financial deterioration.41 To that end, Dandurand
offered Kanyon $100,000 to settle the litigation and said he would seek bankruptcy
protection if Kanyon did not accept the offer.42 Kanyon rejected Dandurand’s
offer.43
The day after Kanyon rejected his settlement offer, Dandurand commenced
his bankruptcy case, electing to proceed under subchapter V of chapter 11.44
Dandurand testified that he sought bankruptcy relief to gain control of his personal
finances, reject the SPA, and reduce legal costs, among other reasons. 45
37
Hr’g Tr. 99:5–15.
38
Hr’g Tr. 30:14–32:6, 35:13–37:6, 37:16–21, 90:24–91:1.
39
Hr’g Tr. 92:10–21.
40
Hr’g Tr. 90:2–8.
41
Hr’g Tr. 24:16–25.
42
Email String Dated December 6–8, 2024, Between Joe Erickson & Stan
Siegel Ex. K5, at 2, In re Dandurand, No. 24-40401 (Bankr. D.S.D. Apr. 10, 2025),
Dkt. No. 163 [hereinafter Dec. 6–8 Email String].
43
Dec. 6–8 Email String, at 1.
44
Chapter 11 Voluntary Pet. Individuals, In re Dandurand, No. 24-40401
(Bankr. D.S.D. Dec. 9, 2024), Dkt. No. 1.
45
See Hr’g Tr. 90:24–92:21 (discussing “borrowing credit to pay credit,” cost
and duration of litigation, and payment of only minimum balances on credit cards).
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Kanyon quickly moved for relief from the automatic stay, seeking authority
to continue the state-court litigation,46 and later filed a motion to dismiss
Dandurand’s case. 47 Kanyon also filed a proof of claim for Dandurand’s alleged
breach of the SPA.48 Dandurand then filed a motion to reject the SPA.49 The
bankruptcy court conducted combined hearings on Kanyon’s motion for relief from
the automatic stay, Kanyon’s motion to dismiss, and Dandurand’s motion to reject
the SPA.50
The bankruptcy court subsequently entered an opinion51 and orders (1)
denying Kanyon’s motion to dismiss Dandurand’s bankruptcy case,52 (2) granting
46
Mot. Relief Automatic Stay, In re Dandurand, No. 24-40401 (Bankr. D.S.D.
Jan. 3, 2025), Dkt. No. 53.
47
Mot. Dismiss Case, In re Dandurand, No. 24-40401 (Bankr. D.S.D. Feb. 17,
2025), Dkt. No. 124.
48
Proof Claim No. 14-1, In re Dandurand, No. 24-40401 (Bankr. D.S.D. Feb.
10, 2025). The parties did not designate Kanyon’s proof of claim as an item included
in the record on appeal, but that claim’s existence is relevant to this panel’s analysis
of Dandurand’s motion to dismiss. Consequently, this panel orders that the record
on appeal include Kanyon’s proof of claim. See Fed. R. Bankr. P. 8009(a)(4) (“The
record on appeal must include: . . . any other items from the record that the court
where the appeal is pending orders to be included.”).
49
Mot. Reject Executory Contract, In re Dandurand, No. 24-40401 (Bankr.
D.S.D. Feb. 11, 2025), Dkt. No. 121.
50
Hr’g Tr. 4:1.
51
Decision Re: Kanyon Holdings, LLC’s Mot. Dismiss; Debtor’s Mot. Reject
Executory Contract; Kanyon Holdings, LLC’s Mot. Relief Automatic Stay, In re
Dandurand, No. 24-40401 (Bankr. D.S.D. May 23, 2025), Dkt. No. 192 [hereinafter
Op.].
52
Order Denying Kanyon Holdings, LLC’s Mot. Dismiss, In re Dandurand,
No. 24-40401 (Bankr. D.S.D. May 23, 2025), Dkt. No. 193.
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Dandurand’s motion to reject the SPA, 53 and (3) denying Kanyon’s motion for relief
from the automatic stay. 54 Though the bankruptcy court authorized Dandurand to
reject the SPA, the court did not set a deadline for Kanyon to file a proof of claim
for contract rejection damages. This appeal of the bankruptcy court’s orders
approving contract rejection and denying stay relief followed.
At least two postappeal events arguably affect the issues on appeal and,
therefore, merit additional elucidation: (1) Kanyon’s withdrawal of its proof of claim
and (2) confirmation of Dandurand’s chapter 11 plan. Relying on these postappeal
circumstances, Dandurand now asks this panel to dismiss this appeal as moot and
for lack of standing.
The first relevant postappeal circumstance is Kanyon’s withdrawal of its proof
of claim.55 After initiating this appeal, Kanyon sought 56 and received approval57 to
withdraw its proof of claim for breach of the SPA. Kanyon’s stated “[g]ood cause”
for the withdrawal was “avoid[ing] litigation expense for the estate and Kanyon.”58
Nothing in the record reflects that Kanyon filed a new claim for contract rejection
damages or that the bankruptcy court set a deadline for Kanyon to file that type of
claim.
53
Order Granting Debtor’s Mot. Reject Executory Contract, In re Dandurand,
No. 24-40401 (Bankr. D.S.D. May 23, 2025), Dkt. No. 194.
54
Order Denying Kanyon Holdings, LLC’s Mot. Relief Automatic Stay, In re
Dandurand, No. 24-40401 (Bankr. D.S.D. May 23, 2025), Dkt. No. 195.
55
Order Approving Kanyon Holdings, LLC’s Mot. Withdraw Proof Claim 14,
In re Dandurand, No. 24-40401 (Bankr. D.S.D. Oct. 23, 2025), Dkt. No. 304.
56
Mot. Authority Withdraw Proof Claim 14, In re Dandurand, No. 24-40401
(Bankr. D.S.D. Oct. 15, 2025), Dkt. No. 294.
57
Order Approving Kanyon Holdings, LLC’s Mot. Withdraw Proof Claim 14.
58
Mot. Authority Withdraw Proof Claim 14, at 1.
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The second relevant postappeal event is confirmation of Dandurand’s chapter
11 plan. Dandurand filed his chapter 11 plan before the bankruptcy court held its
combined hearing and entered the opinion and orders now on appeal.59 That plan
stated that Dandurand would reject the SPA 60 and provided viable paths to
reorganization no matter how the bankruptcy court ruled on contract rejection and
stay relief. Specifically, the plan provided alternative treatment for Kanyon’s claim:
if the bankruptcy court granted the rejection motion, then claim valuation would
follow, but if the bankruptcy court denied the rejection motion, then Dandurand
would file an adversary proceeding against Kanyon to avoid the SPA as a “voidable
transfer” and seek claim valuation.61
Dandurand did not change Kanyon’s treatment under the plan after the
bankruptcy court granted Dandurand’s rejection motion and denied Kanyon’s
motion for stay relief. 62 And though Kanyon originally objected to confirmation,63
it ultimately withdrew its objection 64 and, with court approval, ballot rejecting
Dandurand’s plan. 65 Consequently, after Kanyon took this appeal, the bankruptcy
59
See Debtor’s Plan Dated March 10, 2025, Ex. K13, In re Dandurand, No.
24-40401 (Bankr. D.S.D. Apr. 10, 2025), Dkt. No. 163 [hereinafter Mar. 2025 Plan].
60
Mar. 2025 Plan, at 2, 9, 11–13.
61
Mar. 2025 Plan, at 2.
62
Compare Mar. 2025 Plan, at 2, 8, 10 (describing valuation of Kanyon’s
claim after rejection or at conclusion of avoidance action) with Plan as Confirmed,
at 2, 7–8, 10, In re Dandurand, No. 24-40401 (Bankr. D.S.D. Nov. 13, 2025), Dkt.
No. 317 (same).
63
Obj. Confirmation Plan, In re Dandurand, No. 24-40401 (Bankr. D.S.D.
Apr. 14, 2025), Dkt. No. 170.
64
Withdrawal, In re Dandurand, No. 24-40401 (Bankr. D.S.D. Oct. 15, 2025),
Dkt. No. 288.
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court confirmed Dandurand’s plan with only minor amendments unrelated to
Kanyon and the substantive issues before this panel.66 The confirmed plan retains
the preappeal language providing alternatives for treating Kanyon’s claim. 67
Dandurand premises his motion to dismiss on these postappeal events. This
panel analyzes both the motion to dismiss and the merits of this appeal below.
DISCUSSION
I. We deny Dandurand’s motion to dismiss because no postappeal events
relieve us of our obligation to hear and decide this appeal.
As a preliminary matter, Dandurand asks us to dismiss this appeal without
reaching the merits, arguing that Kanyon’s postappeal withdrawal of its proof of
claim and the confirmation of Dandurand’s plan “had the effect of erasing Kanyon
Holdings’ standing . . . while also mooting the instant appeal.”68 We determine that
the circumstances Dandurand raises do not relieve us of our “virtually unflagging”
obligation to decide this appeal. See Lexmark Int’l, Inc. v. Static Control
Components, Inc., 572 U.S. 118, 126–28 (2014) (criticizing prudential barriers to
judicial review). Consequently, we deny Dandurand’s motion to dismiss on both
grounds.
A. Kanyon retains standing to pursue this appeal.
As his first basis for dismissal, Dandurand argues that plan confirmation and
Kanyon’s withdrawal of its proof of claim “eras[ed] Kanyon Holdings’ standing”69
65
Hr’g Mins. Re: Obj. Claim, In re Dandurand, No. 24-40401 (Bankr. D.S.D.
Oct. 23, 2025), Dkt. No. 305.
66
Order Confirming Plan, In re Dandurand, No. 24-40401 (Bankr. D.S.D.
Nov. 13, 2025), Dkt. No. 316.
67
Plan as Confirmed, at 2, 7–8, 10.
68
Appellee’s Mot. Dismiss 5.
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to litigate this appeal under the Eighth Circuit’s “person aggrieved” doctrine. We
reject this basis for dismissal.
Though Dandurand appears to rely primarily on the person aggrieved
doctrine, his arguments concerning standing also implicate Article III of the United
States Constitution.70 Accordingly, we begin by assessing Kanyon’s standing under
Article III’s applicable framework. Article III’s standing requirement is a
jurisdictional limit to federal review that contains three elements: (1) injury in fact;
(2) causation; and (3) redressability. Lujan v. Defs. of Wildlife, 504 U.S. 555, 560–
61 (1992); Muff v. Wells Fargo Bank NA, 71 F.4th 1094, 1100 (8th Cir. 2023). As
to the first element, the bankruptcy court’s decisions injure Kanyon by altering its
contractual rights, including its right to an investment opportunity under the SPA
and its right to seek specific performance in a nonbankruptcy court. These injuries
are concrete, particularized, and actual deprivations of Kanyon’s rights, and they
give Kanyon a direct stake in the outcome of this appeal. Kanyon’s injuries,
therefore, satisfy the first element of Article III standing. Kanyon’s injuries also
satisfy the second element, causation, because those injuries directly result from the
bankruptcy court’s orders permitting contract rejection and denying Kanyon stay
relief. Finally, under the third element, reversal on appeal would redress Kanyon’s
injuries by restoring its rights to seek specific performance and pursue its desired
investment opportunity. Thus, Kanyon has Article III standing to pursue this appeal
on its merits, and we retain jurisdiction to hear this appeal on that basis.
We also retain authority to hear this appeal under the Eighth Circuit’s person
aggrieved doctrine.
Though courts often describe the person aggrieved doctrine as one of appellate
standing in bankruptcy, Peoples v. Radloff (In re Peoples), 764 F.3d 817, 820 (8th
Cir. 2014), the doctrine is narrower and more restrictive than the traditional test
governing constitutional standing under Article III. Opportunity Fin., LLC v. Kelley,
69
Appellee’s Mot. Dismiss 5.
70
U.S. Const. art. III.
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822 F.3d 451, 458 (8th Cir. 2016); Mercy Health Network v. Mercy Hosp., Iowa
City, IA, 178 F.4th 449, 455–56 (8th Cir. 2026) (Stras, J., concurring). The person
aggrieved doctrine functions as a prudential limit to bankruptcy appeals,71 rather
than as a barrier to jurisdiction, serving prudence by curtailing collateral attacks from
bankruptcy participants who suffer only indirect injuries and who are not party to
the dispute on appeal. Wigley v. Wigley (In re Wigley), 886 F.3d 681, 684 (8th Cir.
2018). To achieve efficient judicial administration in bankruptcy, we limit appellate
review to decisions that directly affect an appellant’s interests. Id. (quoting
Travelers Ins. Co. v. H.K. Porter Co., 45 F.3d 737, 741 (3d Cir. 1995)).
As its name implies, the doctrine permits only persons aggrieved to appeal
bankruptcy decisions. Peoples, 764 F.3d at 820. A person “directly and adversely
affected pecuniarily by the order” on appeal is a person aggrieved. Id. (quoting Sears
v. U.S. Tr. (In re AFY), 734 F.3d 810, 819 (8th Cir. 2013)). An order sufficiently
affects a person’s pecuniary interests if the order injures the person’s property or
impairs the person’s rights. Opportunity Fin., LLC, 822 F.3d at 458; Williams v.
Marlar (In re Marlar), 267 F.3d 749, 753 n.1 (8th Cir. 2001). The harmful pecuniary
impact must be direct, real, and immediate—not remote or speculative. Opportunity
Fin., LLC, 822 F.3d at 458; Mercy Health Network, 178 F.4th at 453.
71
For the purposes of this appeal, we presume that the person aggrieved
doctrine survives the Supreme Court’s admonishment against prudential barriers to
standing in Lexmark because the Eighth Circuit has continued to apply the doctrine
after that ruling. See, e.g., Mercy Health Network, 178 F.4th at 453 (applying the
doctrine after Lexmark despite a concurring opinion spotlighting issues surrounding
its continuing viability and utility). But see Arlington Cap., LLC v. Bainton
McCarthy LLC (In re GT Automation Grp., Inc.), 828 F.3d 602, 605 n.1 (7th Cir.
2016) (declining to “discuss whether, after Lexmark, the standing analysis in
bankruptcy cases involves any ‘prudential’ considerations”); Adams v. Roman Cath.
Church of Archdiocese of New Orleans (In re Roman Cath. Church of Archdiocese
of New Orleans), 101 F.4th 400, 408 (5th Cir. 2024) (“Indeed, this court’s ‘exacting’
‘person aggrieved’ test may be incompatible with the Supreme Court’s decision in
Lexmark, which cast doubt on the role of prudential standing rules in federal
courts.”).
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Under this test, Kanyon is a person aggrieved and may pursue this appeal.
The orders on appeal directly and adversely affect Kanyon’s pecuniary rights by
diminishing its property right to the DSF shares, impairing its right to pursue its
investment opportunity, and preventing it from litigating its rights under the SPA in
state court. Moreover, even if the DSF shares are currently worthless under certain
valuation methods, the orders injure Kanyon’s pecuniary interests because the
impairment of Kanyon’s investment opportunity injures its rights to pursue potential
future monetary benefit. Specifically, the SPA gives Kanyon an interest in using
DSF’s assets and operations to maximize Kanyon’s potential return on investment.
Though Kanyon’s pecuniary injury has not been liquidated because its investment
has yet to come to fruition, Kanyon’s loss of its investment opportunity clearly is
pecuniary in nature. And because Kanyon’s injuries stem directly from the
bankruptcy court’s orders and not a remote or speculative future proceeding, the
orders’ effects are sufficiently immediate to satisfy the person aggrieved doctrine.
Cf. Opportunity Fin., LLC, 822 F.3d at 458–59 (concluding parties were not persons
aggrieved because their potential injuries would stem from a separate, remote
avoidance action involving factual and legal issues distinct from those asserted in
pending appeal).
These direct pecuniary injuries survive plan confirmation and Kanyon’s
withdrawal of its proof of claim. As to Kanyon’s withdrawal of its claim, we decline
Dandurand’s invitation to interpret the person aggrieved doctrine to extend appellate
review only to parties holding valid proofs of claim; a prerequisite that restrictive
contradicts the far-reaching ways bankruptcy decisions often affect non-creditors.
Cf. Truck Ins. Exch. v. Kaiser Gypsum Co., 602 U.S. 268, 281–82 (2024)
(concluding that insurer was a party in interest entitled to object to a debtor’s chapter
11 plan confirmation because the proposed plan affected the insurer pecuniarily).
Moreover, even if the person aggrieved doctrine requires Kanyon to assert a claim
against the bankruptcy estate, Kanyon’s withdrawal of its claim did not destroy its
appellate standing. The bankruptcy court retains discretion under Rules 3003(c)(3)
and 3002(c)(4) to set a deadline for Kanyon to file a proof of claim following
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rejection and, because the SPA’s rejection remains pending on appeal, 72 that court
has not yet set that deadline.
Similarly, plan confirmation did not divest Kanyon of any pecuniary interest
in this appeal because the plan specifically contemplates alternative outcomes that
each affect Kanyon’s pecuniary rights. Under the confirmed plan, either Dandurand
will successfully reject the SPA, and Kanyon may assert a claim against the estate
for rejection damages, or Dandurand will not be permitted to reject the SPA, and he
will instead attempt to avoid the SPA as a fraudulent transfer in a separate adversary
proceeding. 73 Under this alternative structure, Kanyon’s interest in opposing
contract rejection and seeking stay relief remains intact. Consequently, the record
does not support Dandurand’s argument under the person aggrieved doctrine.
Because the postappeal events that Dandurand raises do not erase Kanyon’s
ongoing pecuniary injuries or its standing to pursue this appeal, we decline to dismiss
on this ground.
B. This appeal is not moot.
Dandurand next argues that plan confirmation and Kanyon’s withdrawal of its
proof of claim render this appeal constitutionally and equitably moot. For the
following reasons, we disagree.
1. Constitutional mootness does not bar this appeal.
The doctrine of constitutional mootness derives from Article III’s requirement
that courts decide only live “cases and controversies” and deprives courts of
jurisdiction to decide moot questions. See Chafin v. Chafin, 568 U.S. 165, 171–72
72
See Fed. R. Bankr. P. 3003(c)(3) (authorizing court to permit contract
rejection claim after claims bar date has expired in chapter 11 cases by reference to
Rule 3002(c)(4)); Fed R. Bank. P. 3002(c)(4) (permitting a creditor to file a claim
for contract rejection damages “within the time set by the court”).
73
Plan as Confirmed, at 2, 7–8, 10.
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(2013). The doctrine persists on appeal. Lewis v. Cont’l Bank Corp., 494 U.S. 472,
478–79 (1990).
The standard to hold an appeal constitutionally moot is demanding. Mission
Prod. Holdings, Inc. v. Tempnology, LLC, 587 U.S. 370, 377 (2019). “[A]s long as
the parties have a concrete interest, however small, in the outcome of the litigation,
the case is not moot.” Ellis v. Bhd. of Ry., Airline & S.S. Clerks, Freight Handlers,
Express & Station Emps., 466 U.S. 435, 442 (1984) (citing Powell v. McCormack,
395 U.S. 486, 496–98 (1969)). An appeal becomes moot only if intervening
circumstances “make[] it impossible for the court to grant ‘any effectual relief.’”
Church of Scientology of Cal. v. United States, 506 U.S. 9, 12 (1992) (quoting Mills
v. Green, 159 U.S. 651, 653 (1895)). A court should not dismiss an appeal as long
as even a “partial remedy” is possible. Id. at 13.
The present circumstances do not satisfy this demanding standard. Kanyon
has concrete interests in the outcome of this litigation because the decisions on
appeal deprive Kanyon of its interest in the SPA, its opportunity to invest in DSF,
and its ability to litigate its specific performance case. Just as plan confirmation and
Kanyon’s withdrawal of its claim do not defeat bankruptcy appellate standing, those
events also do not defeat Kanyon’s interests in the outcome of this appeal. Those
events certainly do not make it impossible for us to grant any effective relief if we
accept Kanyon’s substantive arguments. Thus, Kanyon’s appeal is not
constitutionally moot.
2. Equitable mootness does not require us to dismiss this
appeal.
When constitutional mootness does not mandate dismissal, appellate courts in
the Eighth Circuit may nonetheless dismiss a bankruptcy appeal if “common sense
or equitable considerations” excuse appellate review. FishDish, LLP v. VeroBlue
Farms USA, Inc. (In re VeroBlue Farms USA, Inc.), 6 F.4th 880, 888 (8th Cir. 2021)
(quoting Manges v. Seattle-First Nat’l Bank (In re Manges), 29 F.3d 1034, 1039 (5th
Cir. 1994)). Though courts traditionally referred to this bankruptcy-specific barrier
to appellate review as “equitable mootness,” the Eighth Circuit recently criticized
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the doctrine and “banish[ed] ‘equitable mootness’ from the (local) lexicon.” Id. at
888–89 (first quoting In re UNR Indus., Inc., 20 F.3d 766, 769 (7th Cir. 1994), then
citing In re One2One Commc’ns, LLC, 805 F.3d 428, 446–47 (3d Cir. 2015)
(Krause, J., concurring)). Thus, a party requesting dismissal on this basis must pass
a “rigorous test” to persuade the appellate court that “bankruptcy equities and
pragmatics justify foregoing . . . judicial review.” Id. at 883.
Though no specific standard governs our administration of this test, “[t]he
most important factors are whether the confirmed plan [‘]has been substantially
consummated and, if so, what effects reversal of the plan would likely have on third
parties.’” Id. at 889 (quoting Search Mkt. Direct, Inc. v. Jubber (In re Paige), 584
F.3d 1327, 1339 (10th Cir. 2009)).74 It may be appropriate to forego judicial review
after confirmation if “a party seeks appellate review of an issue that, if upset, would
unduly disturb the plan,” Williams v. Citifinancial Mortg. Co. (In re Williams), 256
B.R. 885, 896 (B.A.P. 8th Cir. 2001), or if reversal would otherwise “creat[e] an
unmanageable and uncontrollable situation.” Blackwell v. Little (In re Little), 253
B.R. 427, 431 (B.A.P. 8th Cir. 2000).
On this record, we conclude the “bankruptcy equities and pragmatics” do not
pass the Eighth Circuit’s “rigorous test” to excuse appellate review. In re VeroBlue
Farms USA, Inc., 6 F.4th at 883.
The confirmed plan explicitly proposed alternative paths for reorganization
no matter how the bankruptcy court ruled on contract rejection and stay relief.75
Those alternative paths alleviate any unfairness that third parties might have
74
Though courts also consider whether the appellant obtained a stay pending
appeal of the decision that allegedly renders the appeal moot, In re VeroBlue Farms
USA, Inc., 6 F.4th at 889, Kanyon’s failure to seek a stay pending appeal is not
critical to our inquiry here because the plan confirmation order that allegedly
rendered this appeal moot is not subject to any appeal.
75
Plan as Confirmed, at 2, 7–8, 10.
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otherwise suffered and undermine Dandurand’s arguments that this appeal would
unduly disturb the plan and that equity weighs against appellate review.
Similarly, Kanyon’s preconfirmation withdrawal of its prepetition claim is not
inconsistent with the plan or Kanyon’s ongoing pursuit of this appeal. The plan
provides that Kanyon would have a claim for contract rejection damages if
Dandurand prevails in this litigation, and applicable Rules give the bankruptcy court
authority to impose a deadline after rejection.
Finally, Dandurand’s argument that the plan’s reliance on employment
income “moots” the appeal proves too much. The Eighth Circuit’s reluctance to
invoke equitable mootness cautions against a rule that would entitle debtors to
maintain their current employment merely by obtaining confirmation of wage-
funded plans. Moreover, the record does not show that the difficulty Dandurand
anticipates in obtaining alternative local employment or income sources would
create a truly unmanageable or uncontrollable situation.
Consequently, we deny Kanyon’s motion to dismiss this appeal as equitably
moot. Having dispensed with the motion to dismiss, we turn to the merits of this
appeal.
II. We affirm the bankruptcy court’s rulings on their merits.
Two competing stories and two competing motions lie at the heart of this
appeal. Dandurand contends that Kanyon duped him into signing a potentially
ruinous agreement that fails to specify Kanyon’s true obligations. 76 Dandurand
asked the bankruptcy court to free him from this agreement, and the bankruptcy court
obliged. In contrast, Kanyon frames this matter as one of an altruistic private equity
firm attempting to save a South Dakota snack food institution from financial collapse
with $1.00, an unspecified investment strategy, and good intentions.77 Kanyon
76
Appellee’s Principal Br. 21.
77
See, e.g., Hr’g Tr. 159:20–24 (“So we are interested in buying the company
but we’re not like profiteers where we’re doing everything for money sake. And so
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asked the bankruptcy court to let it pursue these intentions by continuing its pending
state-court litigation against Dandurand, and the bankruptcy court declined.
On appeal, Kanyon challenges the merits of the bankruptcy court’s decisions
and two evidentiary rulings. Because we conclude the bankruptcy court did not
commit reversible error—evidentiary or otherwise—we affirm.
A. The bankruptcy court’s evidentiary rulings do not require
reversal.
We begin by resolving two evidentiary questions that Kanyon raises. First,
did the bankruptcy court err in admitting and considering parol evidence to
determine whether the SPA is an executory contract? And second, did the
bankruptcy court commit reversible error by declining to give weight to
Dandurand’s settlement offer? For the following reasons, we conclude that the
answer to both questions is no.
1. The bankruptcy court properly admitted and considered
parol evidence of the SPA’s terms.
Kanyon first argues that the bankruptcy court committed reversible error by
admitting and considering parol evidence to determine the SPA’s terms and
conditions. The bankruptcy court applied South Dakota law and concluded, among
other things, that certain provisions in the SPA render its conditions to closing
ambiguous and permitted the court to admit parol evidence to construe those
conditions, despite a merger clause stating that the SPA’s language controls. 78
like we’ve got settlement offers and different things and we’ve said from the very
beginning we’re not doing this for money.”), 181:4–10 (“[O]ur intention with this
whole deal was to help Kevin Dandurand out when he called us in need. . . . [Kanyon
is still pursuing the deal] because we got more involved and now we have a vision
for the company and we understand the struggles and we care about people and we
want to save jobs in South Dakota.”).
78
See Op. 13–15.
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Like the bankruptcy court, we determine that South Dakota law governs our
analysis of the parol evidence rule. See Severson v. Fleck, 251 F.2d 920, 923 (8th
Cir. 1958) (applying state law); Finstad v. Gord (In re Finstad), 613 B.R. 180, 183
(B.A.P. 8th Cir. 2020) (rejecting appellants’ argument that “the application of North
Dakota’s parol evidence rule is preempted by the United States Constitution’s
Supremacy Clause, the Bankruptcy Clause, and federal bankruptcy law”). Applying
South Dakota law, we agree that (1) the SPA ambiguously describes the
preconditions to its closing, (2) the conditions precedent exception to the parol
evidence rule applies, and (3) the merger clause does not preclude the admission of
parol evidence in these circumstances. Consequently, the bankruptcy court did not
err.
Parol evidence, meaning evidence extrinsic to the four corners of a contract,
generally is inadmissible to contradict a contract’s written terms. See S.D. Codified
Laws § 53-8-5. But a court may consult parol evidence when the contract language
“is ambiguous[] and does not speak to a subject it would normally be expected to”
address. Sioux Steel Co. v. Ins. Co. of Pa., 127 F.4th 1113, 1118 (8th Cir. 2025)
(quoting AFSCME Loc. 1922 v. South Dakota, 444 N.W.2d 10, 12 (S.D. 1989)). A
contract’s language is ambiguous if “it is capable of more than one meaning when
viewed objectively by a reasonably intelligent person who has examined the context
of the entire integrated agreement.” Brown v. Cont’l Res., Inc., 58 F.4th 1023, 1025
(8th Cir. 2023) (quoting Vander Heide v. Boke Ranch, Inc., 736 N.W.2d 824, 836
(S.D. 2007)).
Here, ambiguities in the SPA open the door for parol evidence. Article II,
Section 2.01 of the SPA contains an error message, setting closing to occur “after
the last of the conditions to Closing set forth in Error! Bookmark not
defined.Error! Reference source not found. [sic] have been satisfied or waived.”79
This language creates significant ambiguity because it invites multiple
interpretations of the SPA. Kanyon posits that this language refers to Article VI of
79
Stock Purchase Agreement, at 4.
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the SPA, titled “Conditions to Closing.” 80 But “a reasonably intelligent person who
has examin