Gary Ozenne v. Chase Manhattan Bank

818 F.3d 514, 75 Collier Bankr. Cas. 2d 603, 2016 WL 1169094, 2016 U.S. App. LEXIS 5602, 62 Bankr. Ct. Dec. (CRR) 108
CourtCourt of Appeals for the Ninth Circuit
DecidedMarch 25, 2016
Docket11-60039
StatusPublished
Cited by3 cases

This text of 818 F.3d 514 (Gary Ozenne v. Chase Manhattan Bank) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gary Ozenne v. Chase Manhattan Bank, 818 F.3d 514, 75 Collier Bankr. Cas. 2d 603, 2016 WL 1169094, 2016 U.S. App. LEXIS 5602, 62 Bankr. Ct. Dec. (CRR) 108 (9th Cir. 2016).

Opinions

OPINION

WALLACE, Senior Circuit Judge:

Gary Ozenne appeals from the Ninth Circuit bankruptcy appellate panel’s (BAP) denial of his petition for a writ of mandamus. Because the BAP is not a “court[ ] established by Act of Congress” under the A1 Writs Act, 28 U.S.C. § 1651(a), we hold that the BAP did not have jurisdiction to consider the petition.

I.

Several years after his bankruptcy case was closed, Ozenne filed a motion for sanctions in the bankruptcy court. [Bankr. Ct. Dkt. No. Ill] The bankruptcy court ruled that it lacked jurisdiction to grant relief [Id. No. 119] and Ozenne filed a petition for writ of mandamus before the BAP [BAP Dkt. 1]. Relying on its previous decision In re Salter, 279 B.R. 278 (B.A.P. 9th Cir.2002), the BAP held that it had jurisdiction pursuant to 28 U.S.C. § 1651 to consider the petition, and then denied the petition. [Id. No. 4] Ozenne appealed from that denial. [Id. No. 6],

II.

Athough the question of whether the BAP has jurisdiction to address a petition for a writ of mandamus has not been raised on appeal, we are “bound to consider jurisdictional defects sua sponte.” United States v. S. Pac. Transp. Co., 543 F.2d 676, 682 (9th Cir.1976). The BAP cited subsection (a) of the A1 Writs Act as the source of its authority to decide a writ of mandamus. Subsection (a) states that “[t]he Supreme Court and all courts established by Act of Congress may issue all writs necessary or appropriate in aid of their respective jurisdictions and agreeable to the usages and principles of law.” 28 U.S.C. § 1651(a).

The question therefore is whether the BAP is one of the “courts established by Act of Congress.” We conclude that the answer is no.

A.

The statute authorizing the BAP answers the question. The BAP was not established by an “Act of Congress”; rather, Congress gave the judicial council of each circuit discretion to establish a bankruptcy appellate panel service.

The statute authorizing the creation of the BAP states that

[t]he judicial council of a circuit shall establish a bankruptcy appellate panel [516]*516service composed of bankruptcy judges ,.. appointed by the judicial council ... to hear and determine, with the consent of all the parties, appeals [from certain final judgments, orders, and decrees of bankruptcy judges] unless the judicial council finds that—
(A) there are insufficient judicial resources available in the circuit; or
(B) establishment of such a service would result in undue delay or increased cost to parties in [bankruptcy cases].

28 U.S.C. § 158(b)(1). The statute does not simply mandate that the judicial council establish a BAP. Instead, a circuit’s judicial council may establish a BAP based on its assessment of the judicial resources available in the circuit and whether the service would cause undue delay or increased cost to the parties. 28 U.S.C. § 158(b)(l)(A)-(B). In addition, the BAP continues only so long as the Judicial Council of the Circuit wishes it to. 28 U.S.C. § 158(b)(2). The BAP is, in effect, a temporary panel to be used only so long as the judicial council chooses to keep it operational. BAP membership is also on a temporary basis, as it is staffed by bankruptcy judges who serve by request, in addition to their assigned role as bankruptcy judges. 28 U.S.C. § 158(b); Judicial Council of the Ninth Circuit, “Amended Order Continuing the Bankruptcy Appellate Panel of the Ninth Circuit” (effective November 18, 1988; as amended May 4, 2010), pg. 3. It has none of the permanency of a court.

Pursuant to congressional authorization, the Judicial Council of the Ninth Circuit established a BAP and has continued the BAP’s service from time to time since then. See Judicial Council of the Ninth Circuit, “Amended Order Continuing the Bankruptcy Appellate Panel of the Ninth Circuit.” Because the BAP is a panel service established by the Judicial Council of the Ninth Circuit, not a “court established by Act of Congress,” it does not have writ power under the All Writs Act.1 Indeed, its “service” status is demonstrated by the authority of the Judicial Council of the Ninth Circuit to terminate the BAP at any time.

B.

The BAP itself previously concluded it had mandamus power in In re Salter, but it was incorrect. In re Cardelucci, 285 F.3d 1231, 1234 (9th Cir.2002) (concluding that “this Court is not bound by a[BAP] decision”). In reaching its conclusion, the BAP first considered various dictionary definitions of the word “establish,” such as ‘“[t]o set up on a secure or permanent basis; to found,’ ” and “ ‘to bring into existence.’” In re Salter, 279 B.R. at 281, quoting Oxford English Dictionary Online and Webster’s New Collegiate Dictionary 391 (1975). The BAP concluded that under such definitions “Congress could be said to have ‘established’ BAPs ... because BAPs did not exist until Congress provided the authority for them.” Id.

Although the definitions used by the BAP do not differ meaningfully from definitions in current legal sources, see, e.g., Black’s Law Dictionary (10th ed. 2014) (defining “establish” as “[t]o make or form; to bring about or into existence”), the BAP’s application of these definitions stretches the meaning of “established” too far, since under its logic any tribunal whose existence is logically dependent in some way upon action by Congress (including any tribunal that receives any kind of federal [517]*517funding or authorization) could be empowered under the All Writs Act. The most obvious meaning of the phrase “established by Act of Congress” is that it covers those entities directly created by a Congressional Act, such as the United States Court of Appeals for Veterans Claims. See Veterans for Common Sense v. Shinseki, 678 F.3d 1013, 1022 (9th Cir.2012) (“The Veterans Court also has authority under the All Writs Act to issue ‘writs necessary or appropriate in aid of [its] jurisdiction [].’”); cf 38 U.S.C. § 7251 (“There is hereby established, under Article I of the Constitution of the United States, a court of record to be known as the United States Court of Appeals for Veterans Claims”). The phrase may even be broad enough to include entities created by a third party at the express direction of Congress. Compare United States v. Draughon, 42 C.M.R. 447, 1970 WL 7129 (1970) with Combest v. Bender, 43 C.M.R. 899, 1971 WL 12909 (1971).

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Bluebook (online)
818 F.3d 514, 75 Collier Bankr. Cas. 2d 603, 2016 WL 1169094, 2016 U.S. App. LEXIS 5602, 62 Bankr. Ct. Dec. (CRR) 108, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gary-ozenne-v-chase-manhattan-bank-ca9-2016.