Billingsley v. Neary (In Re Enerco, Inc.)

43 B.R. 412, 1984 Bankr. LEXIS 4773
CourtUnited States Bankruptcy Court, N.D. Texas
DecidedOctober 22, 1984
Docket19-40883
StatusPublished
Cited by5 cases

This text of 43 B.R. 412 (Billingsley v. Neary (In Re Enerco, Inc.)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Billingsley v. Neary (In Re Enerco, Inc.), 43 B.R. 412, 1984 Bankr. LEXIS 4773 (Tex. 1984).

Opinion

MEMORANDUM OPINION

ROBERT C. McGUIRE, Bankruptcy Judge.

The issue in this case is whether a party that allegedly failed to receive notice of a judgment may be relieved from that judgment under F.R.Civ.P. 60(b), as incorporated by Bankruptcy Rule 9024, after the time for appeal has passed. I hold that in this case no such relief can be granted and the appeal must therefore be dismissed for lack of jurisdiction.

In this adversary proceeding, Billingsley and Billingsley Engineering Company (“plaintiffs”) filed a complaint for reclamation seeking the assignment of certain interests in oil and gas leases which had previously been conveyed by the debtor to the Trade Trustee, pursuant to the terms of a confirmed plan. The Trade Trustee filed his answer to the complaint, and after the parties stipulated to all of the relevant facts, the issues were submitted to the Court on briefs on March 1, 1983, without oral argument or a hearing. By Order dated October 28, 1983, the Honorable Glover Roberts found in favor of Billingsley and against the defendants, the Trade Trustee and Enerco, Inc., the debtor. The Order was entered on the Court’s docket on February 14, 1984, and the clerk’s notation on the docket indicates that copies of the Order were sent to “the U.S. Trustee and Wm. D. Neary”, the Trade Trustee.

The Trade Trustee claims that he did not receive notice of the Court’s Order, presumably because the law offices of the Trade Trustee were in the process of relocation at the time of the mailing of the Court’s Order on February 14, 1984. 1

The Trade Trustee alleges, and I find, that he first became actually aware of the entry of the Court’s Order on July 23,1984. On August 2, 1984, the Trade Trustee filed a Notice of Appeal with the Bankruptcy Court of the October 28, 1983 Order.

It is the contention of the Trade Trustee that lack of notice of the Court's Order excuses the filing of a Notice of Appeal outside the time limits of the Bankruptcy Rules and that relief from the judgment should be granted on such ground under F.R.Civ.P. 60(b), as incorporated by Bankruptcy Rule 9024.

DISCUSSION

The time limits within which a notice of appeal of an Order of the Bankruptcy Court may be filed is governed by Rule 8002 of the Bankruptcy Rules. Rule 8002(a) provides, in relevant part, “(a) Ten-Day Period. The notice of appeal shall be filed with the clerk of the bankruptcy court within 10 days of the date of the entry of the judgment, order, or decree appealed from”.

*414 The ten-day limit provided by subsection (a) of Rule 8002 is modified by subsection (c), which allows the Court to extend the time limit for a period of an additional twenty days in certain cases where the failure to properly file the notice of appeal under subsection (a) was due to excusable neglect.

After the time periods of Rule 8002 have expired, the Appellate Court is without jurisdiction to hear the appeal. Browder v. Director, Department of Corrections, 434 U.S. 257, 264, 98 S.Ct. 556, 561, 54 L.Ed.2d 521 (1978) (“... time limit is ‘mandatory and jurisdictional.’ ”); United States v. Robinson, 361 U.S. 220, 229, 80 S.Ct. 282, 288, 4 L.Ed.2d 259 (1960); United States v. O’Neil, 709 F.2d 361, 369 (5th Cir.1983); Burnside v. Eastern Airlines, 519 F.2d 1127, 1128 n. 2 (5th Cir.1975). The purpose of the rule is “to set a definite point of time when litigation shall be at an end, unless within that time the prescribed application has been made; and if it has not, to advise prospective appellees that they are freed of the appellant’s demands. Any other construction of the statute would defeat its purpose”. Matton Steamboat Co. v. Murphy, 319 U.S. 412, 415, 63 S.Ct. 1126, 1128, 87 L.Ed. 1483 (1943).

It is within this context that the Trade Trustee’s Motion for Relief from Judgment must be scrutinized. The Trade Trustee seeks a ruling from this Court that would relieve him from the Court’s Order after the time for appeal has passed so that he may have another chance to perfect an appeal.

Cases are legion, in this and other Circuits, to the effect that a motion for relief from judgment cannot substitute for a timely appeal. See United States v. O’Neil, supra at 372; In re Morrow, 502 F.2d 520 (5th Cir.1974); Chick Kam Choo v. Exxon Corp., 699 F.2d 693 (5th Cir.1983); Silas v. Sears, Roebuck & Co., Inc., 586 F.2d 382 (5th Cir.1978); Edwards v. Joyner, 566 F.2d 960 (5th Cir.1978); Burnside v. Eastern Airlines, supra; Mizell v. Attorney General, 586 F.2d 942 (2d Cir.1978), cert. denied, 440 U.S. 967, 99 S.Ct. 1519, 59 L.Ed.2d 783 (1979); Kramer v. American Postal Workers Union, 556 F.2d 929 (9th Cir.1977); Demers v. Brown, 343 F.2d 427 (1st Cir.), cert. denied, 382 U.S. 818, 86 S.Ct. 40, 15 L.Ed.2d 64 (1965).

When a motion for relief from judgment is made after the time to perfect an appeal has passed, and the motion is being used only to extend the time for appeal, Rule 60(b) relief squarely collides with the mandate of other Rules designed to implement the strong policy of finality, and therefore, such relief should be denied, absent a showing of exceptional circumstances. United States v. O’Neil, supra.

In Fidelity and Deposit Company of Maryland v. Usaform Hail Pool, Inc., 523 F.2d 744 (5th Cir.1975), the appellants were relieved from judgment under Rule 60(b) despite the failure to timely file a notice of appeal. The Fifth Circuit Court of Appeals affirmed the District Court’s granting of Rule 60(b) relief, stating that the policy of finality must, on occasion, give way to unusual circumstances. In the Usaform Hail Pool case, counsel diligently sought to make suitable inquiries to discover for itself the status of the case. See also, Smith v. Jackson Tool & Die, Inc., 426 F.2d 5 (5th Cir.1970). In Usaform Hail Pool,

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Bluebook (online)
43 B.R. 412, 1984 Bankr. LEXIS 4773, Counsel Stack Legal Research, https://law.counselstack.com/opinion/billingsley-v-neary-in-re-enerco-inc-txnb-1984.