In Re CW Mining Co.

625 F.3d 1240, 2010 WL 4409502
CourtCourt of Appeals for the Tenth Circuit
DecidedNovember 8, 2010
Docket10-4028
StatusPublished
Cited by22 cases

This text of 625 F.3d 1240 (In Re CW Mining Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re CW Mining Co., 625 F.3d 1240, 2010 WL 4409502 (10th Cir. 2010).

Opinion

625 F.3d 1240 (2010)

In re C.W. MINING COMPANY, d/b/a Co-Op Mining Company, Debtor. *1241
Standard Industries, Inc.; C.O.P. Coal Development Company, Appellants,
v.
Aquila, Inc.; Kenneth A. Rushton, Trustee; C.W. Mining Company, Appellees.

No. 10-4028.

United States Court of Appeals, Tenth Circuit.

November 8, 2010.

*1242 Kim R. Wilson, (David L. Pinkston and P. Matthew Cox of Snow, Christensen & Martineau, with her on the briefs), Salt Lake City, UT, for Appellants.

Brent D. Wride and Michael N. Zundel, (and Steven W. Call and Elaine A. Monson of Ray, Quinney & Nebeker, P.C., on the brief), Salt Lake City, UT, for Appellee.

Before KELLY, EBEL, and HOLMES, Circuit Judges.

PAUL KELLY, JR., Circuit Judge.

Appellants Standard Industries, Inc. ("Standard") and C.O.P. Coal Development Company ("COP") appeal from an order of the Bankruptcy Appellate Panel ("BAP") affirming a contempt order of the bankruptcy court. The bankruptcy court held Standard and COP in civil contempt for intentionally violating an automatic stay imposed by 11 U.S.C. § 362(a). This court has jurisdiction pursuant to 28 U.S.C. § 158(d)(1), and we affirm.

Background

The operative facts are not disputed. Appellants Standard and COP and appellee Aquila, Inc. ("Aquila") are creditors of debtor C.W.M. Mining Company ("CWM"). CWM produced coal and leased a mine in Utah from COP. CWM made royalty payments to COP and became *1243 delinquent on those payments in 2007. Standard was the exclusive broker for coal mined by CWM and alleges that CWM owes it over $5 million in payments pursuant to an agency agreement. Aquila is an electric utility company that contracted to buy coal from CWM. In October 2007, Aquila obtained a judgment for nearly $25 million against CWM for breach of contract.

On January 8, 2008, Aquila filed an involuntary bankruptcy petition against CWM pursuant to 11 U.S.C. § 303(b). See 1 Aplt.App. at 113-16. On June 25, 2008, Aquila filed a civil contempt motion against Standard and COP, alleging violations of the automatic stay imposed by 11 U.S.C. § 362(a). See id. at 117-20. Aquila alleged that COP violated the automatic stay by attempting to terminate its coal operating agreement with CWM, attempting to collect pre-petition royalty payments from CWM, and threatening to evict CWM from its mine. See id. at 118. In addition, Aquila alleged that Standard violated the automatic stay by, among other things, suing UtahAmerican Energy, Inc. ("UEI"), a purchaser of CWM's coal, to require UEI to pay Standard funds that had been garnished by Aquila. See id. at 134.

Aquila served its contempt motion by first class mail on Mark Hansen, attorney for Standard, and Carl Kingston, attorney for COP, on June 25, 2008. See 2 Aplt. App. at 502-03. On June 30, 2008, Aquila filed a notice of hearing and mailed copies to Mr. Kingston and Mr. Hansen via first class mail. See id. at 505-07. The notice stated that a hearing on the contempt motion was scheduled for August 1, 2008 and that objections must be filed and served by no later than July 18, 2008. See id. at 506. In addition, it expressly stated that "[i]f no timely objection is made, the Court may grant the relief requested without a hearing, pursuant to Rules 2002-1(b) and 9013-1(c)." Id.

On July 11, 2008, Standard filed a motion to dismiss the involuntary bankruptcy petition against CWM. See id. at 509-10. In addition, Mr. Hansen, representing both Standard and COP, filed a motion to enlarge time to respond to the contempt motion, asking the bankruptcy court to move the deadline to ten days after it ruled on the motion to dismiss as the motion to dismiss, if granted, would moot the contempt motion. See id. at 589-90.

On July 12, 2008, Mr. Hansen began a family vacation and put a hold on his mail delivery. See 3 Aplt.App. at 825. On July 14, 2008, without specifically addressing the motion to enlarge time, the bankruptcy court entered a scheduling order confirming that the hearing on the contempt motion would be held on August 1, 2008 and that Standard and COP had until July 18, 2008 to file a response or objection. See 2 Aplt.App. at 591-93. The scheduling order expressly stated that "[f]ailure of any opposing parties to comply will preclude their participation in the hearing." Id. at 592.

Standard and COP did not file a response in opposition to the contempt motion by the July 18 deadline. On July 23, Aquila filed a certificate of non-response urging the bankruptcy court to grant the relief requested. See id. at 598-601. On the same day, the bankruptcy court entered its order ("contempt order") holding Standard and COP in civil contempt for violations of the automatic stay and voiding all actions taken by Standard and COP in violation thereof. See id. at 609-15. The contempt order directed Standard to return to the bankruptcy estate all money, property, and assets in which CWM had an interest that Standard received on or after the petition date. See id. at 611. It also ordered Standard to dismiss its state *1244 lawsuit against UEI. See id. at 612. In addition, the bankruptcy court declared any post-petition attempts by COP to terminate its coal operating agreement with CWM null and void. See id. Finally, as a sanction for violating the automatic stay, the court ordered Standard and COP to pay Aquila's attorneys' fees and costs incurred in prosecuting the contempt motion. See id. By the time Mr. Hansen returned from his vacation on July 23, 2008, the time to respond to the contempt motion (July 18) had passed, and the contempt order had been entered (July 23). See 3 Aplt.App. at 826.

On July 28, 2008, Standard and COP filed a motion arguing that they were entitled to relief pursuant to Fed.R.Civ.P. 60(b)(1), (3), and (5); that the contempt order violated their due process rights; and that Aquila was required to seek relief by adversary proceeding. See 2 Aplt.App. at 669-82. The bankruptcy court held a hearing on the Rule 60(b) motion on November 3, 2008, and on November 24, 2008, it entered an order denying the motion as to Rules 60(b)(1) and (3), but setting an evidentiary hearing on the relief requested under Rule 60(b)(5) for December 12, 2008. See 3 Aplt.App. at 933-35. On April 15, 2009, Standard and COP abandoned their Rule 60(b)(5) argument and filed a notice of appeal concerning the contempt order and the Rule 60(b) order. See id. at 937-41. The BAP affirmed the bankruptcy court's contempt order and Rule 60(b) order, finding that COP and Standard had been afforded due process; that Aquila's claims were properly sought by motion; and that Standard and COP failed to provide an adequate record concerning their Rule 60(b)(1) and (3) arguments. See Standard Indus., Inc. v. Aquila, Inc. (In re C.W. Mining Co.), 431 B.R. 307, ___-___ (10th Cir. BAP 2009).

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

Related

Wenger v. Johnson
D. Kansas, 2024
Staples v. CIR
Tenth Circuit, 2021
Clark v. Passa
D. Utah, 2020
Smith v. PacerMonitor, LLC
N.D. Oklahoma, 2020
Arlin Geophysical v. United States
696 F. App'x 362 (Tenth Circuit, 2017)
Muth v. Krohn
550 B.R. 869 (D. Colorado, 2016)
Redmond v. Jenkins (In Re Alternate Fuels, Inc.)
789 F.3d 1139 (Tenth Circuit, 2015)
Wagner v. American Family Mutual Insurance
569 F. App'x 574 (Tenth Circuit, 2014)
Mitchell v. Weinman
554 Fed. Appx. 756 (Tenth Circuit, 2014)
Rajala v. Taylor (In re Taylor)
495 B.R. 28 (Tenth Circuit, 2013)
Hansen v. PT Bank Negara Indonesia (Persero)
706 F.3d 1244 (Tenth Circuit, 2013)
Williamson v. Westby (In re Westby)
486 B.R. 509 (Tenth Circuit, 2013)

Cite This Page — Counsel Stack

Bluebook (online)
625 F.3d 1240, 2010 WL 4409502, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-cw-mining-co-ca10-2010.