In re Christian

804 F.2d 46, 15 Collier Bankr. Cas. 2d 983, 1986 U.S. App. LEXIS 32928
CourtCourt of Appeals for the Third Circuit
DecidedOctober 30, 1986
DocketNo. 85-5783
StatusPublished
Cited by35 cases

This text of 804 F.2d 46 (In re Christian) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Christian, 804 F.2d 46, 15 Collier Bankr. Cas. 2d 983, 1986 U.S. App. LEXIS 32928 (3d Cir. 1986).

Opinion

OPINION OF THE COURT

SEITZ, Circuit Judge.

Appellant Union Chelsea Bank (the “Bank”) appeals from an order of the district court affirming a bankruptcy court order denying the motions of the Bank, the Trustee in Bankruptcy (the “Chapter 7 Trustee”), and other creditors to dismiss under 11 U.S.C. § 707(b) the Chapter 7 petition of debtors Edward S. and Diane C. Christian. As discussed more fully below, this court has jurisdiction to review the district court’s order under 28 U.S.C. § 158(d).

I

On November 26, 1984, the Christians filed a joint petition for relief under Chapter 7 of the Bankruptcy Code. At a subsequent meeting of creditors conducted pursuant to 11 U.S.C. § 341(a), the Bank and other creditors examined the Christians. Based upon the petition and information revealed at the creditors’ meeting, the Bank became convinced that granting Chapter 7 relief to the Christians would be a substantial abuse of the Bankruptcy Code.

The Bank thereafter moved to dismiss the Christian petition under 11 U.S.C. § 707(b). The Chapter 7 Trustee and other creditors joined in the Bank’s motion. The bankruptcy court denied the motions of the Bank, the Chapter 7 Trustee and the other creditors on the ground that the court alone could move to dismiss under § 707(b).

Only the Bank appealed the bankruptcy court’s order to the district court. That court affirmed the bankruptcy court “in all respects.” This appeal followed.

II

As a preliminary matter, this court must consider the Christians’ contention that the court lacks jurisdiction to review the district court’s order. The Christians argue that the order is interlocutory and therefore not appealable under 28 U.S.C. § 158(d). Section 158(d) grants this court jurisdiction of appeals from all final decisions, judgments, orders and decrees entered by a district court or a bankruptcy appellate panel on appeal from a bankruptcy court.

In In re Marin Motor Oil, 689 F.2d 445 (3rd Cir.1982), cert. denied, 459 U.S. 1207, 103 S.Ct. 1196, 75 L.Ed.2d 440 (1983), the bankruptcy court denied a motion of a creditor’s committee to intervene in adversary proceedings instituted by a bankruptcy trustee. The district court reversed and ruled that the committee could intervene. Construing 28 U.S.C. § 1293(b), the predecessor of § 158(d), this court determined that the district court’s order was appeal-able. The court approached finality prag[48]*48matically, looking at the effect of the district court’s ruling. Id. at 447-49.

The same pragmatic approach was followed in In Re Comer, 716 F.2d 168 (3rd Cir.1983), in which this court concluded it had jurisdiction to consider an appeal from a district court order reversing an order of a bankruptcy court refusing to lift an automatic stay. This court noted that effective review of the order could not await final disposition of the case in the bankruptcy court. Id. at 172. See also In Re Amatex Corp., 755 F.2d 1034, 1036-41 (3rd Cir. 1985) (allowing appeal under 28 U.S.C. § .1291 from district court order denying appointment of a representative for future claimants in an asbestos textile manufacturer’s bankruptcy proceeding).

If the order here is not now appealable the entire bankruptcy proceedings must be completed before it can be determined whether they were proper in the first place. We do not view such a resolution as either desirable or practical. In light of Marin Motor Oil, Comer and Amatex, we therefore conclude that the district court’s order in this case is a final order under § 158(d). Accordingly, this court has jurisdiction to consider the Bank’s appeal.1

III

The Bank contends that the district court erroneously affirmed the bankruptcy court's order. We will address the Bank’s four arguments in turn.

A

The Bank first contends that the lower courts erroneously concluded that the Bank lacks standing to move for dismissal under § 707(b). Our review of this legal issue is plenary.

§ 707(b) provides:
After notice and a hearing, the court, on its own motion and not at the request or suggestion of any party in interest, may dismiss a case filed by an individual debtor under this chapter whose debts are primarily consumer debts if it finds that the granting of relief would be a substantial abuse of the provisions of this chapter. There shall be a presumption in favor of granting the relief requested by the debtor, (emphasis added)

The Bank admits that it is a party in interest within the meaning of § 707(b), but nevertheless argues that it should be permitted to file motions to dismiss under § 707(b).

The Bank suggests that the statute is ambiguous and does not preclude creditors from filing § 707(b) motions. It contends that if Congress had intended to preclude a creditor from filing a § 707(b) motion, it would have specifically so stated. The Bank then offers a number of practical reasons for permitting creditors to file § 707(b) motions, including the suggestion that allowing creditors to file these motions makes good sense.

We need not evaluate the wisdom of the Bank’s suggestions. Indeed, we cannot, because the statute clearly prohibits .parties in interest from making § 707(b) motions. Since the statute is plain and unequivocal on its face, and the Bank does not refer to any legislative history indicating that parties in interest are entitled to make § 707(b) motions, the Bank’s argument is without merit.2 Russello v. U.S., [49]*49464 U.S. 16, 20, 104 S.Ct. 296, 299, 78 L.Ed.2d 17 (1983).

B

The Bank next argues that the lower courts erred in determining that the Chapter 7 Trustee lacked standing to file motions to dismiss under § 707(b).

After the bankruptcy court denied the motions to dismiss of the Bank, the Chapter 7 Trustee, and the other creditors, only the Bank appealed to the district court. The record does not indicate that the Bank asserted standing in the district court to raise the issue of the Chapter 7 Trustee’s ability to move for dismissal under § 707(b). Under these circumstances, the right of the Chapter 7 Trustee to move for dismissal under § 707(b) was not before the district court, and is not properly within the scope of the district court’s order.

Under these circumstances, the Bank’s contention will not be considered by this court.

C

The Bank argues that the lower courts erred in concluding that the U.S. Trustee lacked standing to file motions under § 707(b).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Culp v. Stanziale
550 B.R. 683 (D. Delaware, 2015)
McDow v. Dudley
662 F.3d 284 (Fourth Circuit, 2011)
Ruben Fleurantin v.
420 F. App'x 194 (Third Circuit, 2011)
In re American Capital Equipment, LLC
296 F. App'x 270 (Third Circuit, 2008)
In Re: Amer Cap
Third Circuit, 2008
Barben v. Donovan (In Re Donovan)
532 F.3d 1134 (Eleventh Circuit, 2008)
Vlasek, Joseph v. U.S. Trustee
Seventh Circuit, 2003
In Re Joseph Vlasek, Debtor-Appellant
325 F.3d 955 (Seventh Circuit, 2003)
In Re Passis
235 B.R. 562 (D. New Jersey, 1999)
Stewart v. United States Trustee (In Re Stewart)
175 F.3d 796 (Tenth Circuit, 1999)
In Re Morris
153 B.R. 559 (D. Oregon, 1993)
In re BH & P Inc.
949 F.2d 1300 (Third Circuit, 1991)

Cite This Page — Counsel Stack

Bluebook (online)
804 F.2d 46, 15 Collier Bankr. Cas. 2d 983, 1986 U.S. App. LEXIS 32928, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-christian-ca3-1986.