David Findling v. Tammy Terry

CourtCourt of Appeals for the Sixth Circuit
DecidedJune 13, 2025
Docket24-1380
StatusUnpublished

This text of David Findling v. Tammy Terry (David Findling v. Tammy Terry) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
David Findling v. Tammy Terry, (6th Cir. 2025).

Opinion

NOT RECOMMENDED FOR PUBLICATION File Name: 25a0293n.06

No. 24-1380 FILED UNITED STATES COURT OF APPEALS Jun 13, 2025 FOR THE SIXTH CIRCUIT KELLY L. STEPHENS, Clerk

) In re: LYNN BETH BAUM, ) ON APPEAL FROM THE UNITED Debtor. ) STATES DISTRICT COURT FOR ________________________________________ ) THE EASTERN DISTRICT OF ) MICHIGAN | UNITED STATES DAVID M. FINDLING; FINDLING LAW FIRM ) BANKRUPTCY COURT FOR PLC, ) THE EASTERN DISTRICT OF Creditors-Appellees, ) MICHIGAN ) v. ) OPINION ) TAMMY L. TERRY, Chapter 13 Standing ) Trustee, ) Trustee-Appellant. )

Before: MOORE, GRIFFIN, and KETHLEDGE, Circuit Judges.

PER CURIAM. In this bankruptcy matter, the debtor Lynn Beth Baum voluntarily

dismissed her Chapter 13 petition. Then the bankruptcy court ordered Chapter 13 Trustee Tammy

L. Terry to distribute all the funds received. Creditors David M. Findling and the Findling Law

Firm PLC (“Findling”) appealed to the district court. The district court denied Terry’s motion to

dismiss but ordered Findling to show cause why the appeal should not be dismissed. The court

then vacated the show-cause order. Here, Terry seeks review of these orders under 28 U.S.C.

§ 158(d)(1). We dismiss this appeal for lack of jurisdiction because the district court’s orders

before us are not final. No. 24-1380, Findling v. Terry

I.

Lynn Beth Baum filed a voluntary Chapter 13 bankruptcy petition in February 2022.

Attorney David Findling and his firm represented Baum initially, but later were disqualified

because they were also creditors asserting a pre-petition attorney’s fee lien. In re Baum, 639 B.R.

721, 722–23 (Bankr. E.D. Mich. 2022). During the next year, Baum proposed several bankruptcy

plans, and made or directed payments to the Trustee Tammy Terry that totaled $147,466. In re

Baum, 650 B.R. 852, 856 (Bankr. E.D. Mich. 2023).

In March 2023, however, Baum voluntarily dismissed her bankruptcy petition without a

confirmed plan. Terry then proposed to distribute the funds she had received, under which Terry

would retain 8% of what she had held on Baum’s behalf, as a trustee’s fee under 28 U.S.C.

§ 586(e)(2). Findling objected to Terry’s fee and Baum objected to other aspects of the proposed

distribution. In an opinion dated May 5, 2023, the bankruptcy court said it would order the Trustee

to pay all the funds to Baum—except for (1) “any and all administrative expenses allowed under

11 U.S.C. § 503(b)” and (2) “the Trustee’s percentage fee under 28 U.S.C. § 586(e)(2).” In re

Baum, 650 B.R. at 858. The accompanying order said the distribution was “without prejudice to

any attorney lien that Findling may claim in any of the funds to be paid to the Debtor by the Trustee

under this Order.” Terry did as ordered—retaining a trustee’s percentage fee of $11,974.65, paying

Baum’s bankruptcy attorney $31,468.30, and returning $104,069.27 to Baum.

Findling filed a timely notice of appeal to the district court under 28 U.S.C. § 158(d)(1).

The notice incorrectly identified (and attached) the bankruptcy court’s opinion, rather than its

order. On June 13, the district court received the designated record and issued a scheduling order.

The order required, as relevant here, that Findling file a brief by July 13. But Findling never did.

-2- No. 24-1380, Findling v. Terry

On July 20, Terry moved to dismiss Findling’s appeal based primarily on defects in the

notice of appeal. The district court denied Terry’s motion to dismiss. In that order, the district

court rejected most of Terry’s arguments but ordered Findling to show cause why the appeal should

not be dismissed for having failed to file the required brief or otherwise to prosecute the case.

Findling’s response pled confusion caused by an earlier bankruptcy court order (not appealed

here). The district court vacated the show-cause order without explanation. Terry then appealed

both orders.

II.

The parties say we have jurisdiction in this appeal, but we must independently satisfy

ourselves that we do. See NOCO Co. v. OJ Com., LLC, 35 F.4th 475, 480 (6th Cir. 2022).

Although a single-judge order initially said we did, we are not bound by that order. See Fed. R.

App. P. 27(c); United States v. Kechego, 91 F.4th 845, 853 (6th Cir. 2024); see also In re Troutman

Enters., Inc., 286 F.3d 359, 364 (6th Cir. 2002) (“[W]e are under a continuing obligation to verify

our jurisdiction over a particular case.”).

Under 28 U.S.C. § 158(d)(1), a court of appeals may hear “appeals from all final decisions,

judgments, orders, and decrees” of a district court (or bankruptcy appellate panel) reviewing a

bankruptcy court’s decision. The determination whether the district court’s order is final “largely

mirror[s] our understanding of finality under [28 U.S.C. §] 1291.” In re Lindsey, 726 F.3d 857,

859 (6th Cir. 2013). That means “a decision by the district court on appeal remanding the

bankruptcy court’s decision for further proceedings in the bankruptcy court is not final, and so is

not appealable to this court, unless the further proceedings contemplated are of a purely ministerial

character.” Settembre v. Fid. & Guar. Life Ins. Co., 552 F.3d 438, 441 (6th Cir. 2009) (citation

omitted).

-3- No. 24-1380, Findling v. Terry

When a district court dismisses an appeal, we have jurisdiction under § 158(d)(1) to review

whether that determination was correct. In re Cyberco Holdings, Inc., 734 F.3d 432, 437 (6th Cir.

2013) (explaining the BAP’s dismissal of the appeal “fully resolved the appellate proceedings by

deciding the jurisdictional question and left nothing for the bankruptcy court to do”). But here the

district court neither affirmed the bankruptcy court’s order nor dismissed the appeal. The orders

before us now, rather, are quintessentially interlocutory.

Terry contends that the district court’s orders are final because she says her motion to

dismiss was a “proceeding” that involved “a discrete dispute” with “specific procedural steps.” In

re Cal. Palms Addiction Recovery Campus, Inc. (California Palms), 87 F.4th 734, 739 (6th Cir.

2023). Terry confuses the standard for determining whether a bankruptcy court order is final and

therefore appealable by right to the district court (§ 158(a)(1)) with the standard for determining

whether a district court’s decision in a bankruptcy appeal is appealable to this court (§ 158(d)(1)).

See In re Wohleber, 833 F. App’x 634, 638 (6th Cir.

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Related

Cohen v. Beneficial Industrial Loan Corp.
337 U.S. 541 (Supreme Court, 1949)
Settembre v. Fidelity & Guaranty Life Insurance
552 F.3d 438 (Sixth Circuit, 2009)
Bullard v. Blue Hills Bank
575 U.S. 496 (Supreme Court, 2015)
Ritzen Group, Inc. v. Jackson Masonry, LLC
589 U.S. 35 (Supreme Court, 2020)
NOCO Co. v. OJ Com., LLC
35 F.4th 475 (Sixth Circuit, 2022)
Lindsey v. Pinnacle National Bank
726 F.3d 857 (Sixth Circuit, 2013)
Cal. Palms Addiction Recovery Campus, Inc.
87 F.4th 734 (Sixth Circuit, 2023)
United States v. Jason Dale Kechego
91 F.4th 845 (Sixth Circuit, 2024)

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