Hotel Syracuse, Inc. v. City of Syracuse Industrial Development Agency (In Re Hotel Syracuse, Inc.)

154 B.R. 13, 25 Fed. R. Serv. 3d 1124, 1993 U.S. Dist. LEXIS 5676, 1993 WL 152524
CourtDistrict Court, N.D. New York
DecidedApril 27, 1993
Docket90-02921, Adv. No. 91-60166A (SDG), Civ. A. No. 93-CV-323
StatusPublished
Cited by18 cases

This text of 154 B.R. 13 (Hotel Syracuse, Inc. v. City of Syracuse Industrial Development Agency (In Re Hotel Syracuse, Inc.)) is published on Counsel Stack Legal Research, covering District Court, N.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hotel Syracuse, Inc. v. City of Syracuse Industrial Development Agency (In Re Hotel Syracuse, Inc.), 154 B.R. 13, 25 Fed. R. Serv. 3d 1124, 1993 U.S. Dist. LEXIS 5676, 1993 WL 152524 (N.D.N.Y. 1993).

Opinion

MEMORANDUM-DECISION and ORDER

McAVOY, Chief Judge.

1. BACKGROUND

This Chapter 11 case was commenced in the Southern District of New York by the filing of a voluntary petition on October 26, 1990. In November, 1990, the case was referred to Bankruptcy Judge Stephen J. Gerling pursuant to 28 U.S.C. § 157(a), after venue was transferred to the Northern District of New York.

On February 5, 1993, the United States Bankruptcy Court of the Northern District of New York (Gerling, J.) issued a Memorandum Decision, Findings of Fact, Conclusions of Law and order in the above-captioned matter (“Order”). In the subject motion, filed by Hotel Syracuse, Inc. (“Debtor”) on July 30, 1992, and cross-motion on behalf of City of Syracuse Industrial Development Agency and Syracuse Economic Development Corporation (collectively, the “City”), all parties sought summary judgment on the issue of whether an agreement between the parties, dated May 2, 1981 and entitled Lease Agreement (“Lease”), constituted a “true lease” for purposes of § 365(d)(4) of the Bankruptcy Code. Judge Gerling granted summary judgment to the Debtor, denied the City’s cross-motion for summary judgment, and declared that the Lease was not in fact a *15 “true lease” under the Code. The instant motion concerns the timeliness of the City’s efforts to appeal that decision of the Bankruptcy Court.

It is undisputed that the Order the City seeks to appeal was both signed by Judge Gerling, and entered by the Clerk of the Bankruptcy Court, on Friday, February 5, 1993. As such, and as both parties acknowledge in their papers, the final day on which the City could timely file its Notice of Appeal was Tuesday, February 16, 1993. 1 However, as advanced by the City’s counsel, Hiscoek & Barclay (Robert A. Barrer, Esq., of counsel), several unfortunate circumstances, including a family death and inclement weather conditions, prevented the timely filing of the Notice of Appeal with the Clerk of the Bankruptcy Court (Barrer Aff. ¶ 3, 4). Nevertheless, in an effort to comply with the 10-day filing deadline, counsel for the City transmitted a copy of their Notice of Appeal, via facsimile, to the Bankruptcy Court in Utica, New York late in the afternoon on February 16, 1993. One day later, on February 17, 1993, a “hard copy” of the Notice of Appeal was received by the Bankruptcy Court via overnight mail, and filed. It is relevant to note that the City did not request, either before or after the expiration of the time period to file its Notice of Appeal, an enlargement of the time within which to file pursuant to Bankruptcy Rule 8002(c). Bankr.Rule 8002(c), 11 U.S.C.A. (hereafter, “Rules”).

Counsel for the City apparently believed that the submission by facsimile constituted timely filing, until receipt of the Bankruptcy Clerk’s correspondence, dated March 10, 1993, indicating that the Notice of Appeal was being treated as untimely because it was not received by mail and filed until February 17, 1993. This motion quickly ensued, having been filed on March 12, 1993.

The City now seeks an order declaring that its facsimile transmission of its Notice of Appeal, and accompanying documents, constituted timely filing on February 16, 1993, or, in the alternative, an order granting the City leave to file the Notice of Appeal and accompanying papers with the Bankruptcy Court, nunc pro tunc.

For the reasons set forth herein, the City’s motion is denied in its entirety.

II. DISCUSSION

A. Notice of Appeal Filing Requirements

Bankruptcy Rule 8001 requires that a notice of appeal be filed with the Clerk of the Bankruptcy Court within the time allowed by Bankruptcy Rule 8002. Rule 8002, in turn, is entitled “Time for Filing Notice of Appeal”, and provides in pertinent part that the “notice of appeal shall be filed within 10 days of the date of entry of the judgment, order, or decree appealed from.” Rule 8002(a) (emphasis added). 2 In the instant case, there is no dispute that the 10-day period for filing the City’s Notice of Appeal began to run on February 5, 1993 and ended on February 16, 1993. See note 1, supra. Rather, the Court must address the propriety of facsimile filing and also determine, as the Debtor urges, whether this court has jurisdiction to grant the relief requested.

1. The Filing Deadline is Jurisdictional in Nature.

The 10-day period for filing a notice of appeal has been strictly construed, requiring strict compliance with its terms. In re Shewchun, 959 F.2d 236 (6th Cir. 1992); In re Parkway Inn, Ltd., 936 F.2d 579 (9th Cir.1991); In re Souza, 795 F.2d 855 (9th Cir.1986); In re Universal Minerals, Inc., 755 F.2d 309 (3d Cir.1985); In re *16 Satellite Systems Corp., 73 B.R. 610 (S.D.N.Y.1987) (and cases cited therein); Twins Roller Corp. v. Roxy Roller Rink Joint Venture, 70 B.R. 308, 310 (S.D.N.Y. 1987) (and cases cited therein). More significantly, the 10-day deadline under Rule 8002(a) is jurisdictional in nature, so that a failure to timely file the notice of appeal deprives the district court of jurisdiction to review a bankruptcy court’s order. 3 In re Corto, 1992 WL 279257, 1992 U.S.Dist. LEXIS 15296 (W.D.N.Y.1992); In re Tuti-no, 1991 WL 144199, 1991 U.S.Dist. LEXIS 10210 (N.D.N.Y.1991) (and cases cited therein); In re W.T. Grant Co., 425 F.Supp. 565, 567 (S.D.N.Y.1976), aff'd mem. sub. nom., 559 F.2d 1202, 1206 (2d Cir.1977). Indeed, in In re Tutino, then-Chief Judge McCurn stated:

The court recognizes that this Notice of Appeal was filed only one day late — on April 30, 1991 — but it is well settled that the 10 day limit is to be strictly construed, requiring strict compliance with its terms. Consequently, because [the creditor] did not comply with Rule 8002(a) and because he did not seek an extension of time in which to file an appeal under Rule 8002(c), the court cannot overlook this jurisdictional defect. The appeal must be dismissed.

1991 WL 144199, 2, 1991 U.S.Dist. LEXIS 10210, 7 (N.D.N.Y.1991) (emphasis added) (citations omitted).

Based on the foregoing, it is clear that this court may not simply disregard or forgive a party’s failure to comply with Rule 8002(a). However, this conclusion only begs the questions which the court must now address — first, whether submission of papers to the Bankruptcy Court by facsimile constitutes timely filing; and second, whether Bankruptcy Rule 9006(a) extended the 10-day filing period due to inclement weather.

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154 B.R. 13, 25 Fed. R. Serv. 3d 1124, 1993 U.S. Dist. LEXIS 5676, 1993 WL 152524, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hotel-syracuse-inc-v-city-of-syracuse-industrial-development-agency-in-nynd-1993.