In Re Dorn

295 B.R. 872, 2003 Bankr. LEXIS 881, 2003 WL 21783192
CourtUnited States Bankruptcy Court, E.D. Arkansas
DecidedAugust 1, 2003
Docket5:03-bk-12211
StatusPublished
Cited by1 cases

This text of 295 B.R. 872 (In Re Dorn) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, E.D. Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Dorn, 295 B.R. 872, 2003 Bankr. LEXIS 881, 2003 WL 21783192 (Ark. 2003).

Opinion

ORDER

RICHARD TAYLOR, Bankruptcy Judge.

Before the Court is the “Objection of Oakwood Acceptance Corporation, LLC to Confirmation of Plan” filed on June 4, 2003, by Oakwood Acceptance Corporation, LLC [Oakwood]. On June 24, 2003, the debtor filed her “Debtor’s Response & Motion to Dismiss Objection to Confirmation of Plan Filed by Oakwood Acceptance Corporation.” In her response and motion, the debtor argues that Oakwood’s objection is untimely filed and should be denied. The Court held a hearing on July 25, 2003, in Pine Bluff, Arkansas. At the conclusion of the hearing, the Court took this matter under advisement. For the reasons stated below, the Court overrules Oakwood’s objection and grants the debt- or’s motion to dismiss the objection.

This Court has jurisdiction over this matter pursuant to 28 U.S.C. § 1334 and 28 U.S.C. § 157, and it is a core proceeding pursuant to 28 U.S.C. § 157(b)(2)(L). The following order constitutes findings of fact and conclusions of law in accordance with Federal Rule of Bankruptcy Procedure 7052.

The issue before the Court is an alleged incongruity between Federal Rule of Bankruptcy Procedure 3015 (as affected by Federal Rule of Bankruptcy Procedure 9006) and this Court’s General Order Number 20 relating to when an objection to confirmation of a debtor’s chapter 13 plan must be filed. 1 The parties presented this issue on the following stipulations:

• The debtor filed her petition and plan on February 21, 2003;
• The chapter 13 trustee filed an objection to confirmation of plan on April 7, 2003;
• The first meeting of creditors was held on either April 4 or April 8, 2003 (the parties disputed the date of the first meeting of creditors; the Court takes judicial notice of the case file, and notes that the meeting was scheduled for April 4, but that the trustee entered her “meeting held and concluded” notice on April 8);
*874 • The debtor filed a modified plan in response to the trustee’s objection on April 29, 2003, and noticed it for 25 days;
• The trustee withdrew her objection on May 21, 2003;
• Oakwood filed its objection to confirmation of plan on June 4, 2003; and
• The Court entered its Order Confirming Chapter 13 Plan on June 5, 2003.

As is evident from the above, this matter presents the unique situation where the objection was not timely filed as contemplated in General Order Number 20, but, based upon the reading asserted by Oak-wood, was timely filed pursuant to Rule 3015(f) as having been filed before confirmation of the plan. Rule 3015(f) states as follows:

An objection to confirmation of a plan shall be filed and served on the debtor, the trustee, any other entity designated by the court, and shall be transmitted to the United States trustee, before confirmation of the plan. An objection to confirmation is governed by Rule 9014. If no objection is timely filed, the court may determine that the plan has been proposed in good faith and not by any means forbidden by law without receiving evidence on such issues. 2

Rule 9006 specifically provides that the court may not reduce the time for taking action with respect to certain enumerated rules, including, in its entirety, Rule 3015. 3 General Order Number 20, adopted by the United States Bankruptcy Courts for the Eastern and Western Districts of Arkansas on December 17, 2001, references Rule 3015(f) and provides that objections to confirmation of the debtor’s plan in chapter 13 cases must be filed with the Clerk of the Bankruptcy Court and served on the chapter 13 trustee and the debtor before the 10th day after the 341(a) meeting of creditors is concluded. General Order Number 20 goes on to state that if no objections are filed, the plan will be confirmed without further notice or a hearing.

The bankruptcy courts are expressly afforded the right to promulgate local rules. 4 The validity of a local rule is a question of law. 5 The Ninth Circuit Bankruptcy Appellate Panel set forth a three part test for determining the validity of a local rule: “ ‘(1) whether it is consistent with Acts of Congress and the Federal Rules of Bankruptcy Procedure; (2) whether it is more than merely duplicative of such statutes and rules; and (3) whether it prohibits or limits the use of Official Forms.’ ” 6 The second and third factors are self evident and non-dispositive in this instance. The Court’s analysis will be confined to the first factor, which is the sole issue raised by Oakwood.

Counsel for Oakwood suggested two alternatives to the Court in rendering its decision. First, Oakwood proposed that General Order Number 20 and Rule 3015(f) can be read as consistent with each other. Here, Oakwood’s position is that General Order Number 20 does not reduce the objection period contrary to rule 9006, but simply affords the creditor a safe period within which to object secure in the knowledge that a confirmation order will *875 not be entered. Nothing in General Order Number 20 suggests such a reading, and the Court cannot accept this characterization. It is evident that the order’s purpose is specifically and expressly to set a definite deadline for objections, as opposed to creating a safe harbor period.

Alternatively, Oakwood argues that General Order Number 20 is invalid because it impermissibly reduces the objection period set forth in rule 3015(f). The Court cannot agree. As a general principle, the code, and rules promulgated consistent therewith, is designed to afford the parties exactness and specificity with respect to when actions may permissibly be taken. The obverse is that parties may also rely on these time periods in determining when to take subsequent or concomitant actions. Rule 9006 is consistent with that principle. The predicate language in section (a) recognizes that there will be time periods prescribed or allowed by these rules “or by the Federal Rules of Civil Procedure made applicable by these rules, by the local rules, [or] by order of court,....” 7

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Related

In re Welsh
540 B.R. 672 (E.D. Arkansas, 2015)

Cite This Page — Counsel Stack

Bluebook (online)
295 B.R. 872, 2003 Bankr. LEXIS 881, 2003 WL 21783192, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-dorn-areb-2003.