In re Edwards

CourtCourt of Appeals for the Sixth Circuit
DecidedJune 5, 2018
Docket17-8028
StatusUnpublished

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

Bluebook
In re Edwards, (6th Cir. 2018).

Opinion

By order of the Bankruptcy Appellate Panel, the precedential effect of this decision is limited to the case and parties pursuant to 6th Cir. BAP LBR 8024-1(b). See also 6th Cir. BAP LBR 8014-1(c).

File Name: 18b0003n.06

BANKRUPTCY APPELLATE PANEL OF THE SIXTH CIRCUIT

In re: RYAN BRADLEY EDWARDS; LESLIE JOANNA ┐ EDWARDS, │ Debtors. │ │ ___________________________________________ │ COMMUNITY FINANCIAL SERVICES BANK, > No. 17-8028 │ Plaintiff-Appellee, │ │ v. │ │ RYAN BRADLEY EDWARDS, │ Defendant-Appellant. │ ┘

Appeal from the United States Bankruptcy Court for the Western District of Kentucky at Paducah. No. 14-50717—Alan C. Stout, Judge.

Decided and Filed: June 5, 2018

Before: BUCHANAN, DALES, and HARRISON, Bankruptcy Appellate Panel Judges. _________________

COUNSEL

ON BRIEF: Michael G. Byers, THE BYERS LAW FIRM, PLLC, Paducah, Kentucky, for Appellant. Martin W. Johnson, Kip C. Mathis, JOHNSON & MATHIS, Benton, Kentucky, for Appellee. _________________

OPINION _________________

BETH A. BUCHANAN, Bankruptcy Appellate Panel Judge. Appellant-Debtor Ryan Edwards (“Edwards”) appeals the bankruptcy court’s order denying his motion requesting an extension of time to file a notice of appeal. In the order, the bankruptcy court concluded that No. 17-8028 In re Edwards Page 2

Edwards’s failure to file a notice of appeal from an adverse nondischargeability judgment within the fourteen-day deadline was not a result of excusable neglect. For the reasons that follow, the Panel affirms.

ISSUES ON APPEAL

The issues on appeal are three-fold: 1) whether the bankruptcy court committed an error of law by applying a four-factor rather than five-factor standard for excusable neglect pursuant to Federal Rule of Bankruptcy Procedure 8002(d) and the Pioneer1 case; 2) whether the bankruptcy court committed an error of law by focusing on the prejudice to the non-moving party, rather than the debtor, under the first Pioneer factor; and 3) whether the bankruptcy court abused its discretion by denying Edwards’s motion to extend the deadline for filing a notice of appeal based on its determination that Edwards failed to demonstrate excusable neglect.

JURISDICTION AND STANDARD OF REVIEW

The Bankruptcy Appellate Panel of the Sixth Circuit (“Panel”) has jurisdiction to decide this appeal. The United States District Court for the Western District of Kentucky has authorized appeals to the Panel and none of the parties has timely elected to have the appeal heard by the district court. A bankruptcy court’s final order may be appealed as of right pursuant to 28 U.S.C. § 158(a)(1). For purposes of appeal, an order is final if it “‘ends the litigation on the merits and leaves nothing for the court to do but execute the judgment.’” Midland Asphalt Corp. v. United States, 489 U.S. 794, 798, 109 S. Ct. 1494 (1989) (citation omitted). “An order denying a motion for an extension of time to file a notice of appeal is a final appealable order.” Allied Domecq Retailing USA v. Schultz (In re Schultz), 254 B.R. 149, 151 (B.A.P. 6th Cir. 2000) (quoting Belfance v. Black River Petroleum, Inc. (In re Hess), 209 B.R. 79, 80 (B.A.P. 6th Cir. 1997)).

“The meaning of ‘excusable neglect,’ is a question of law subject to de novo review.” Schultz, 254 B.R. at 151 (quoting Hess, 209 B.R. at 80). “‘De novo review requires the Panel to

1Pioneer Inv. Servs. Co. v. Brunswick Assocs. Ltd. P’ship., 507 U.S. 380, 395, 113 S. Ct. 1489 (1993). No. 17-8028 In re Edwards Page 3

review questions of law independent of the bankruptcy court’s determination.’” Id. (citing First Union Mortg. Corp. v. Eubanks (In re Eubanks), 219 B.R. 468, 469 (B.A.P. 6th Cir. 1998)).

The bankruptcy court’s denial of Edwards’s motion for an extension of time to file a notice of appeal is reviewed for abuse of discretion. Id.; Hess, 209 B.R. at 80. “The abuse of discretion standard is deferential and requires the reviewing court to lend credence to the [lower] court’s determinations.” Proctor v. Northern Lakes Cmty. Mental Health, 560 F. App’x 453, 456 (6th Cir. 2014) (citing Yeschick v. Mineta, 675 F.3d 622, 628 (6th Cir. 2012)). “‘A court has abused its discretion if the reviewing court has a definite and firm conviction that the trial court committed a clear error of judgment in the conclusion that it reached based on all of the appropriate factors.’” Schultz, 254 B.R. at 151 (citing Hess, 209 B.R. at 80). “While acknowledging this standard, the Court of Appeals for the Sixth Circuit has recently expressed it in another way as well: ‘The question is not how the reviewing court would have ruled, but rather whether a reasonable person could agree with the bankruptcy court’s decision; if reasonable persons could differ as to the issue, then there is no abuse of discretion.’” Id. (citing Barlow v. M.J. Waterman & Assocs., Inc. (In re M.J. Waterman & Assocs., Inc.), 227 F.3d 604, 608 (6th Cir. 2000)).

FACTS

On October 12, 2014, Edwards and his wife, Leslie JoAnna Edwards (“Leslie Edwards” and collectively “Ryan and Leslie Edwards”) filed a Chapter 7 bankruptcy petition. They retained Steve Vidmer, Esq. (“Vidmer”) to represent them in the bankruptcy case. On April 1, 2015, Plaintiff-Appellee Community Financial Services Bank (“CFSB”) filed an adversary proceeding against Ryan and Leslie Edwards to determine the amount of a debt owed to CFSB and whether the debt is excepted from discharge in the bankruptcy case. Vidmer represented Ryan and Leslie Edwards in the adversary proceeding. On July 17, 2017, the bankruptcy court entered a Memorandum Opinion and Judgment (“Judgment”) in favor of CFSB and against Edwards (but not Leslie Edwards) in the amount of $610,053.55 and determined the debt to be excepted from discharge. No. 17-8028 In re Edwards Page 4

On August 16, 2017, Edwards filed a Motion for Extension of Time for Filing Notice of Appeal on Ground of Excusable Neglect (“Motion”) through his new counsel, Michael G. Byers, Esq. In the Motion, Edwards requested an extension of time to appeal the bankruptcy court’s Judgment on grounds of excusable neglect. Edwards asserted that he did not learn about the adverse Judgment from his counsel until after the ten-day deadline2 for appeal had passed nor did he learn, until that time, that Vidmer declined to represent him in an appeal. Furthermore, Edwards asserted that he has many demands on his time as he lives in Missouri and travels for work extensively. Even with these demands on his time, he made multiple attempts to retain representation but was unable to do so until August 11, 2017.

On August 23, 2017, Edwards filed an Amended Motion for Extension of Time for Filing Notice of Appeal on Ground of Excusable Neglect to correct factual errors in the prior Motion. In the Amended Motion, Edwards admitted that Vidmer provided Edwards with notice of the Judgment on July 18, 2017, the day after the Judgment was entered. However, Edwards asserts that he was still unable to find new counsel in time to file the notice of appeal for the reasons stated in the Motion.

CFSB filed its response in opposition to the extension and a hearing was held on August 24, 2017.

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Related

Midland Asphalt Corp. v. United States
489 U.S. 794 (Supreme Court, 1989)
United States v. Munoz
605 F.3d 359 (Sixth Circuit, 2010)
James M. Jourdan, Jr. v. John Jabe and L. Boyd
951 F.2d 108 (Sixth Circuit, 1991)
Yeschick v. Mineta
675 F.3d 622 (Sixth Circuit, 2012)
Yvette Duncan v. Mertis Washington
25 F.3d 1047 (Sixth Circuit, 1994)
Torrance Pilgrim v. John Littlefield
92 F.3d 413 (Sixth Circuit, 1996)
Schmidt v. Boggs (In Re Boggs)
2000 FED App. 0004P (Sixth Circuit, 2000)
First Union Mortgage Corp. v. Eubanks (In Re Eubanks)
1998 FED App. 0011P (Sixth Circuit, 1998)
Allied Domecq Retailing USA v. Schultz (In Re Schultz)
2000 FED App. 0010P (Sixth Circuit, 2000)
HML II, Inc. v. Ginley (In Re HML II, Inc.)
1999 FED App. 0008P (Sixth Circuit, 1999)
In Re Ly
378 B.R. 416 (Sixth Circuit, 2007)
Nicholson v. City of Warren
467 F.3d 525 (Sixth Circuit, 2006)
Nafziger v. McDermott International, Inc.
467 F.3d 514 (Sixth Circuit, 2006)
Proctor v. Northern Lakes Community Mental Health
560 F. App'x 453 (Sixth Circuit, 2014)
Larson v. Bayer (In re Bayer)
527 B.R. 202 (E.D. Pennsylvania, 2015)

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Bluebook (online)
In re Edwards, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-edwards-ca6-2018.