In re Gundrum

509 B.R. 155, 2014 WL 1664280, 2014 Bankr. LEXIS 1650
CourtUnited States Bankruptcy Court, S.D. Ohio
DecidedApril 3, 2014
DocketNo. 13-12641
StatusPublished
Cited by4 cases

This text of 509 B.R. 155 (In re Gundrum) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Gundrum, 509 B.R. 155, 2014 WL 1664280, 2014 Bankr. LEXIS 1650 (Ohio 2014).

Opinion

MEMORANDUM OF DECISION VACATING ORDER DENYING MOTION TO ALTER, AMEND, OR VACATE

JEFFREY P. HOPKINS, Bankruptcy Judge.

This matter is presently before the Court on the Debtor’s motion to alter, amend, or vacate the judgment entry granting relief from stay pursuant to Federal Rules of Civil Procedure 59(e) and 60(b) (“Motion”) (Doc. Ill) and the objection thereto by the creditor Melvin I. Shapiro (“Shapiro”) (Doc. 116). In the Motion the Debtor asserts that the judgment entry granting Shapiro relief from the automatic stay (“Judgment”) should be vacated to enable the Debtor to present evidence in support of the chapter 13 plan of reorganization, that the Judgment should be amended to conditionally grant relief from the automatic stay triggered by the Debt- or’s failure to provide adequate protection payments, and the Judgment should be altered so that it is clear that the decision is a final appealable order. Specifically, in support of the Debtor’s request to vacate the Judgment, the Debtor asserts that the grounds upon which the Court found “cause” for granting relief under 11 U.S.C. § 362(d)(1) are inconsistent with both the decisions cited by the Court and applicable law.

Procedural History

On May 31, 2013, the Debtor filed a bankruptcy petition seeking a discharge of certain of his indebtedness under chapter 13 of the Code (Doc. 1). On October 18, 2013, Shapiro filed a motion for relief from stay (Doc. 65) and a hearing on the motion for relief from stay was held on November 21, 2013. On November 22, 2013, the Court rendered an oral decision finding that the motion for relief from stay should be granted for cause under § 362(d)(1). In support of the decision, the Court found that the Debtor’s proposed chapter 13 plan did not adequately protect the interests of Shapiro, the plan was not feasible, and a consideration of the totality of the circumstances lead to the conclusion that the plan was not filed in good faith (Doc. 107). On November 22, 2013, the Court entered the Judgment (Doc. 100), and on December 7, 2013, the Debtor filed the present Motion (Doc. Ill) seeking to have the Court alter, amend or vacate the Judgement entered in the case. In response to the Motion, on December 30, 2013, Shapiro filed an objection (Doc. 116).1

Jurisdiction

The Court has jurisdiction over this action pursuant to 28 U.S.C. § 1334(a) and (b). This proceeding arises in a case referred to this Court by the Standing Order of Reference entered in this District and is determined to be a core proceeding pursuant to 28 U.S.C. § 157(b)(2)(G). The Court is authorized to enter final judgment in this proceeding. This memorandum constitutes the Court’s findings of fact and conclusions of law under Federal Rule of Bankruptcy Procedure 7052.

Law

Federal Rule of Civil Procedure 59, made applicable to these proceedings by Federal Rule of Bankruptcy Procedure 9023, allows a bankruptcy court to grant a new nonjury trial on some or all of the issues “for any reason for which a new [159]*159trial has heretofore been granted in an action at law in federal court.” Fed. R.Civ.P. 59(a)(1)(A). A motion for a new trial under Rule 59 may be granted “‘if there is: (1) a clear error of law; (2) newly discovered evidence; (3) an intervening change in controlling law; or (4) a need to prevent manifest injustice.’ ” In re Pertuset, 485 B.R. 478, 2012 WL 6598444, at *20 (6th Cir. BAP 2012) (quoting Intera Corp. v. Henderson, 428 F.3d 605, 620 (6th Cir.2005)). However, “[a] motion for a new trial or to alter or amend a judgment [under Rule 59] shall be filed ... no later than 14 days after entry of judgment.” Fed. R. Bankr.P. 9023.

Federal Rule of Civil Procedure 60(b), made applicable by Federal Rule of Bankruptcy Procedure 9024, provides that “[o]n motion and just terms, the court may relieve a party ... from a final judgment, order, or proceeding for the following reasons: (1) mistake, inadvertence, surprise, or excusable neglect; ... or (6) any other reason that justifies relief.” Fed.R.Civ.P. 60(b). The party seeking relief from a judgment or an order under Rule 60(b) “bears the burden of establishing that its prerequisites are satisfied,” In re Brown, 413 B.R. 700, 705 (6th Cir. BAP 2009), and “the party seeking relief under Rule 60(b) bears the burden of establishing the grounds for such relief by clear and convincing evidence.” Info-Hold, Inc. v. Sound Merch., Inc., 538 F.3d 448, 454 (6th Cir.2008).

Relief from a judgment or an order under Rule 60(b)(1) may be granted because of a mistake, inadvertence, surprise, or excusable neglect. Relief under Rule 60(b)(1) is “intended to provide relief to a party in only-two instances: (1) when the party has made an excusable litigation mistake or an attorney in the litigation has acted without authority; or (2) when the judge has made a substantive mistake of law or fact in the final judgment or order.” Cacevic v. City of Hazel Park, 226 F.3d 483, 490 (6th Cir.2000) (quoting Yapp v. Excel Corp., 186 F.3d 1222, 1231 (10th Cir.1999)). In evaluating whether relief under Rule 60(b)(1) is appropriate courts consider the following factors: “(1) whether the party seeking relief is culpable; (2) whether the party opposing relief will be prejudiced; and (3) whether the party seeking relief has a meritorious claim or defense.” Williams v. Meyer, 346 F.3d 607, 613 (6th Cir.2003); In re Liberty Fibers Corp., 05-53874, 2008 WL 2287466, at *4 (Bankr.E.D.Tenn. Apr. 30, 2008). Only after a movant has shown a lack of culpability because of mistake, inadvertence, surprise, or excusable neglect, will the court consider whether prejudice to the party opposing relief and whether the movant has a meritorious claim or defense. Williams, 346 F.3d at 613; In re Smith Mining & Material, LLC, 399 B.R. 199, 201 (Bankr.W.D.Ky.2008).

In addition, when addressing excusable neglect courts must consider “all relevant circumstances surrounding the party’s omission.” Pioneer Inv. Servs. Co. v. Brunswick Associates Ltd. P’ship,

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Cite This Page — Counsel Stack

Bluebook (online)
509 B.R. 155, 2014 WL 1664280, 2014 Bankr. LEXIS 1650, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-gundrum-ohsb-2014.