Flyboy Aviation Properties, LLC v. Franck (In re Flyboy Aviation Properties, LLC)

525 B.R. 510
CourtUnited States Bankruptcy Court, N.D. Georgia
DecidedJanuary 16, 2015
DocketCASE NO. 13-55775-BEM; Adversary Proceeding No. 13-05111-BEM
StatusPublished
Cited by3 cases

This text of 525 B.R. 510 (Flyboy Aviation Properties, LLC v. Franck (In re Flyboy Aviation Properties, LLC)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Flyboy Aviation Properties, LLC v. Franck (In re Flyboy Aviation Properties, LLC), 525 B.R. 510 (Ga. 2015).

Opinion

[516]*516 ORDER

Barbara Ellis-Monro, U.S. Bankruptcy Court Judge

This adversary proceeding came before the Court for trial on August 20, 21, 22, and 28, 2014 (the “Trial”). Prior to Trial, the Court entered an order bifurcating the issues raised in the proceeding and, on October 11, 2018, entered an Order holding that Defendant had an “express easement ... that allows use of the Airport Property1 until such time as the Airport is no longer used as an airport.” (Doc. No. 47, p. 27) (the “October 11 Order”). Thereafter, the Court granted Plaintiff-Debtor’s (“Plaintiff”) motion to sell the Airport Property pursuant to 11 U.S.C. § 363(f). (Case No. 13-55775, Doc. No. 91).

The remaining claims and counterclaims before the Court at Trial were Plaintiffs request for injunctive relief based upon Defendant’s alleged trespass on the Airport Property and for damages for trespass, nuisance, and tortuous interference with business relations, and attorney fees. Defendant filed counterclaims seeking a declaratory judgment regarding his asserted easement and seeking damages for trespass and nuisance, attorney fees, and punitive damages.

After carefully considering the pleadings, the evidence presented and the applicable authorities, the Court enters the following findings of fact and conclusions of law in accordance with Fed. R. Bankr.P. 7052.

I. Jurisdiction

Bankruptcy courts are courts of limited jurisdiction whose jurisdiction is “derivative of and dependent upon” the three categories of proceedings set forth in 28 U.S.C. § 1334(b). See In re Toledo, 170 F.3d 1340, 1344 (11th Cir.1999). Thus, bankruptcy courts are permitted to hear only matters: (1) arising under title 11, (2) arising in a case under title 11, and (3) related to a case under title 11. Id.; 28 U.S.C. § 157(a). Matters arising under title 11 and arising in a case under title 11 are core matters in which a bankruptcy court has authority to enter a final judgment while matters related to a case under title 11 are non-core. The bankruptcy court may hear non-core matters, but absent the consent of the parties, does not have the authority to enter a final judgment. 28 U.S.C. §§ 157(b), (c)(1) and (c)(2).

Matters arising under title 11 involve “matters invoking a substantive right created by the Bankruptcy Code while matters arising in a case under title 11 are generally administrative-type matters that could arise only in bankruptcy.” Toledo, 170 F.3d at 1344. Noncore or “related to matters” are those matters that “could conceivably have an effect on the estate being administered in bankruptcy.... An action is related to bankruptcy if the outcome could alter the debtor’s rights, liabilities, options, or freedom of action (either positively or negatively) and which in any way impacts upon the handling and administration of the bankrupt estate.” In re Lemco Gypsum, Inc., 910 F.2d 784, 788 (11th Cir.1990) (adopting the Pacor formulation set forth in Pacor, Inc. v. Higgins, 743 F.2d 984, 994 (3rd Cir.1984)).

[517]*517Here, Defendant seeks a declaratory judgment setting forth the exact parameters of the express easement recognized in the October 11' Order, damages for trespass and nuisance, including attorney fees and punitive damages, and an injunction to prevent Plaintiff from interfering with his use of the Airport and taxiways. Plaintiff seeks an injunction to keep Defendant off the Airport Property, and seeks damages for trespass, nuisance, tortious interference with business relations, and attorney fees. As was held in the October 11 Order, the determination of Defendant’s interest, including clarification of the exact scope of the same, is a core matter concerning property of Plaintiffs bankruptcy estate and is subject to the Court’s exclusive jurisdiction under 28 U.S.C. § 1334(e). See In re Finney, No. 05-83587-PWB, 2008 WL 7874260, at *4 (Bankr.N.D.Ga. July 1, 2008). With respect to each of the other claims and counterclaims, the Court finds that these are all non-core, related-to matters, because the award of damages to either party would clearly “alter the debtor’s rights, liabilities, options, or freedom of action.” Lemco Gypsum., 910 F.2d at 788. The Court advised the parties at the beginning of the Trial that the claims were non-core matters and asked whether the parties would consent to entry of a final order or whether the Court would issue a report and recommendation to the District Court. Plaintiff and Defendant have consented to entry of a final order pursuant to 11 U.S.C. § 157(c)(2).

With respect to the attorney fees claims, to the extent the claims relate to establishment of the easement and its exact scope, the Court may enter a final judgment on the claims. See In re Antioch Co., 451 B.R. 810, 812 (Bankr.S.D.Ohio 2011) (attorney fees core claims to the extent sought in connection with claims pursuant to the Bankruptcy Code, but non-core to the extent premised on state law claims); see also In re New York Skyline, Inc., 471 B.R. 69, 80 (Bankr.S.D.N.Y.2012) (court had authority to enter final judgments on attorney fees incurred in relation to core matters). To the extent attorney fees claims are based on the non-core claims, the parties have consented to this Court’s entry of a final judgment.

II. Findings of Fact

The facts relevant to Defendant’s acquisition of property in the Subdivision and an easement to “join taxiways to airport taxiways of Mathis Airport and to have use of landing strip as long as Mathis Airport shall continue as an airport;” (the “Easement”) are set forth in the October 11 Order.2

After Plaintiff purchased the Airport in June 2004, it completed substantial renovations to the Airport Property, including removing dilapidated hangars, constructing new “tee” hangars, constructing a new clubhouse, and repaving, widening, lengthening, and marking the runways. These renovations began in 2004 and were completed in 2006. Since Plaintiffs purchase of the Airport, it has been and continues to be well maintained. Elgin Wells, Jr., an instrument-rated commercial pilot who has used the Airport since 1969, testified that the improvements completed by Plaintiff were quite an upgrade. Eric Brown, a private pilot who currently uses the Airport, testified that the runway is in adequate condition for takeoff and landing. In addition to the renovations, Plaintiff sought to increase use of the Airport [518]*518though advertising and events at the Airport. Plaintiff also began selling hangar space and memberships.

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Bluebook (online)
525 B.R. 510, Counsel Stack Legal Research, https://law.counselstack.com/opinion/flyboy-aviation-properties-llc-v-franck-in-re-flyboy-aviation-ganb-2015.