In Re Ambassador Park Hotel, Ltd.

61 B.R. 792, 1986 U.S. Dist. LEXIS 24915
CourtDistrict Court, N.D. Texas
DecidedMay 29, 1986
DocketCiv. A. CA3-86-0312-D
StatusPublished
Cited by23 cases

This text of 61 B.R. 792 (In Re Ambassador Park Hotel, Ltd.) is published on Counsel Stack Legal Research, covering District 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
In Re Ambassador Park Hotel, Ltd., 61 B.R. 792, 1986 U.S. Dist. LEXIS 24915 (N.D. Tex. 1986).

Opinion

OPINION

FITZWATER, District Judge.

In this appeal from an order of the bankruptcy court dismissing appellant’s claim against a Chapter 11 debtor, appellant, Thomas Electronics, Inc. (“Thomas”), contends it was deprived of timely and sufficient notice of the hearing on the debtor’s objection to its claim. The questions presented on appeal are: (1) whether Thomas timely filed its notice of appeal; (2) whether eight-days’ oral notice of the hearing on debtor’s objection was adequate under Fed.R.Bankr.P. 3007; (3) whether Thomas waived its right to the notice required by Fed.R.Bankr.P. 3007; (4) whether Fed.R.Bankr.P. 9014 requires only “reasonable” notice; (5) whether the bankruptcy court, for cause shown, reduced the required notice pursuant to Fed.R.Bankr.P. 9006(c); and (6) whether the determination that eight-days’ oral notice was “adequate” notice was a proper use of the bankruptcy court’s discretion under 11 U.S.C. § 105(a). Concluding that Thomas timely filed its notice of appeal, that eight-days’ oral notice of hearing was inadequate, that there is no basis for concluding that Thomas waived its right to adequate notice, and that Fed. R.Bankr.P. 9014 and 9006(c) and 11 U.S.C. § 105(a) are inapposite, the court REVERSES the order of dismissal and REMANDS the claim to the bankruptcy court for further proceedings in accordance with this opinion. 1

*795 I.

Background Facte

Except as noted, the material facts are not disputed. Ambassador Park Hotel, Ltd. (“Ambassador”), appellee, filed a voluntary bankruptcy petition on June 6, 1983. On September 7, 1983 Ambassador filed an application for fixing of time for filing of claims. The bankruptcy court set November 30, 1983 as the last date to file a proof of claim, by order signed October 12, 1983. On February 21, 1984 Thomas filed its proof of claim, stating it had learned by rumor of the Ambassador bankruptcy sometime after the fact. On February 28, 1984 Ambassador filed a written objection to the claim but did not obtain a hearing on the objection. On March 6, 1984 Thomas filed its answer to the objection, stating it first had knowledge of the bankruptcy in early January 1984. Neither party thereafter requested a hearing on the objection until December 1984, when Ambassador requested a hearing on all unresolved matters. The bankruptcy court set a hearing for February 15, 1985.

On January 25, 1985, twenty days before the scheduled hearing, the bankruptcy clerk issued written notice of the hearing to approximately 143 parties included on the mailing matrix or the schedules. Thomas, however, was not listed by Ambassador on either the matrix or the schedules and was not mailed a notice. Ambassador proceeded to prepare for the hearing and, on January 15, 1985, mailed to Thomas a request for production of documents, requesting that certain documents be produced on February 20, 1985, a date five days after the scheduled hearing. By telephone, on February 8, 1985, a legal assistant with the law firm that represented Ambassador contacted Thomas’ counsel. The content of this conversation is sharply disputed. Ambassador contends that the legal assistant requested that Thomas’ counsel provide Ambassador with documents prior to the February 15 hearing, and gave Thomas’ counsel oral notice of the hearing. In an affidavit signed by the legal assistant, she states that Thomas’ counsel expressed surprise that a hearing was to be held on February 15 but nevertheless agreed to produce the documents. (See text of affidavit at note 12, infra). Contrary to Ambassador’s position, Thomas contends that it and its counsel were “totally unaware of the hearing” (Appellant’s Br. at 3) and that “[i]t was fully Thomas’s intention to prosecute its claim and oppose the objection.” Id.

Neither Thomas nor its counsel appeared at the February 15 hearing. The bankruptcy court signed an order dismissing Thomas’ claim on February 25, 1985. On March 5, 1985 Thomas filed a motion asking the bankruptcy court to reconsider and set aside the order of dismissal. Ambassador responded to the motion on March 8, 1985. On the same day, the bankruptcy court signed an order granting Thomas’ motion and setting aside the dismissal order, but on March 11, three days later, it signed an order denying Thomas’ motion to reconsider. The conflicting orders were both entered on March 12, 1985. When the orders came to the court’s attention, the court contacted counsel and advised them that a hearing would be held. At the hearing, the court found that Thomas did not receive the January 24, 1985 written notice but found that Thomas had been given notice eight days prior to the hearing and concluded this notice was sufficient. As a consequence, the court denied the motion for reconsideration and, on April 5, 1985, entered an amended order denying the motion. Thomas did not appeal from this order.

On April 12, 1985 Thomas filed a second motion to reconsider and set aside the order of dismissal. On April 18, 1985 Ambassador filed a responsive brief. On May 13, 1985 the bankruptcy court signed a third order denying Ambassador’s motion to reconsider, which order was entered on May 16, 1985. 2 On May 24, 1985 Thomas filed its notice of appeal.

*796 II.

Timeliness of Notice of Appeal

The first question presented is whether Thomas timely filed its notice of appeal. The court holds that it did. Rule 8002(a) 3 provides that a “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.” This requirement is jurisdictional, Matter of Robinson, 640 F.2d 737, 738 (5th Cir.1981), and failure to timely file the notice deprives the district court of power to hear and determine the appeal. Matter of Ramsey, 612 F.2d 1220, 1222 (9th Cir.1980).

Ambassador contends that Thomas should have appealed within ten days of the April 5, 1985 order denying reconsideration and that the purported appeal from the May 16, 1985 order is a nullity because that order did not emanate from the bankruptcy court’s reconsideration of the merits of the original order. (Appellee’s Br. at 4-5).

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Bluebook (online)
61 B.R. 792, 1986 U.S. Dist. LEXIS 24915, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-ambassador-park-hotel-ltd-txnd-1986.