Judson v. International Terminal Operating Co. (In re Oro Import Co.)

57 B.R. 341, 1986 Bankr. LEXIS 6755
CourtUnited States Bankruptcy Court, S.D. Florida.
DecidedFebruary 5, 1986
DocketBankruptcy No. 83-00860-BKC-AJCZ; Adv. No. 85-0739-BKC-AJC-A
StatusPublished
Cited by1 cases

This text of 57 B.R. 341 (Judson v. International Terminal Operating Co. (In re Oro Import Co.)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, S.D. Florida. primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Judson v. International Terminal Operating Co. (In re Oro Import Co.), 57 B.R. 341, 1986 Bankr. LEXIS 6755 (Fla. 1986).

Opinion

ORDER DENYING MOTION FOR RELIEF FROM JUDGMENT FOR DEFENDANT AND ORDER DENYING MOTION FOR REHEARING

A. JAY CRISTOL, Bankruptcy Judge.

This cause came on to be heard upon the motion for relief from judgment for defendant and order denying motion for rehearing filed by Stephen H. Judson, trustee, on December 30, 1985.

This court is initially concerned with its jurisdiction to hear this motion purportedly filed under Rule 60(b), Fed.R.Civ.P. because a notice of appeal was filed in this cause by Stephen H. Judson, trustee, on December 6, 1985. (C.P. No. 24). At least one other judge opined that it was inappropriate, due to lack of jurisdiction, for the court to rule on a motion under Rule 60(b) after a notice of appeal has been filed. In re Bialac, 694 F.2d 625, 627 (9th Cir.1982). The Eleventh Circuit seems to indicate that [342]*342there is a “discretionary power of a ... court to consider such a motion even after an appeal has been noticed. Parrott v. Wilson, 707 F.2d 1262, 1266-1267, n. 8 (11th Cir.1983). This prospect of simultaneous jurisdiction in an appellate court and a trial court creates substantial concern in the mind of this court as to the possible problems that might result. This court agrees with Judge Paskay’s decision, In the Matter of Urban Development Ltd., Inc., 42 B.R. 741, 744 (Bankr.M.D.Fla.1984), wherein he stated: “While the bankruptcy court has a wide latitude to reconsider and vacate its own prior decisions, it may not do anything which has any impact on the order on appeal.” The court will, however, assume jurisdiction here in the interest of judicial economy since the merits are clearly dispositive of the matter.

To correct a mistake in a stipulation submitted to the court, the trustee relies on Rule 60(b), Fed.R.Civ.P. The court will determine whether this reliance is legally justified.

On May 20, 1985, the trustee filed his original complaint (C.P. No. 1) in which he alleged his appointment as trustee on May 18, 1985. The defendant generally denied this allegation in paragraph 2 of an answer filed on July 17, 1985 (C.P. No. 6) and once again denied this allegation in an amended answer filed on July 26, 1985 (C.P. No. 7).

Thereafter, pursuant to pre-trial procedures, counsel for the plaintiff (the trustee) and the defendant met and agreed on a stipulation of fact that was Part C of a Pre-Trial Report, filed on August 14, 1985. The trustee and the defendant quite clearly stipulated that the trustee was appointed on May 18, 1983. (C.P. No. 10).

On August 15, 1985, the defendant filed a memorandum of law on the untimely filing of this proceeding noting that the complaint was filed two years and two days after May 18, 1983, the date of the appointment of the trustee (C.P. No. 11). On the same day, the plaintiff filed a pre-trial memorandum which opposed this defense with the assertion that the filing was timely based on B.R. 9006(a) (C.P. No. 12).

On August 30, 1985, this court prepared Findings of Fact and Conclusions of Law and also issued a Final Judgment, which were docketed by the clerk on September 11, 1985 (C.P. Nos. 13 and 14).

Then, on September 9, 1985, plaintiff-trustee filed a motion for rehearing (C.P. No. 15) in which he further argued the timeliness of the filing. The court observes he chose not to question the stipulated fact that May 18, 1983 was the date from which the statute of limitations began to run. Also on September 9, 1985, the trustee filed a notice of appeal (C.P. No. 16).

Plaintiff submitted a memorandum of law in support of rehearing, filed September 25, 1985, in which he again argued for the timely filing of the complaint. He cited B.R. 9006(a) and Rule 6(a), Fed.R.Civ.P. in support of his claim, but he failed to raise any issue concerning the accuracy of the factual stipulation that May 18, 1983 was the date of the trustee’s appointment.

On September 26, 1985, the defendant filed a memorandum of law arguing the issue of timeliness and opposing plaintiff’s motion for rehearing (C.P. No. 21).

On November 29, 1985, the court signed an order denying plaintiff’s motion for rehearing which was docketed by the clerk on December 4, 1985 (C.P. No. 23).

An additional notice of appeal was filed by the trustee on December 6, 1985 (C.P. No. 24). Then, on December 12, 1985, plaintiff filed a motion for relief under Rule 60(b) Fed.R.Civ.P. (C.P. No. 26) in which he raised for the first time, the issue of “mistake of fact” regarding the stipulated date of May 18, 1983, which purportedly is not the true date of the trustee’s appointment.

The trustee relies heavily on U.S. v. Gould, 301 F.2d 353 (5th Cir.1962), (hereinafter Gould) as authority for relief from mistake of fact. In that case, Chief Judge Tuttle extensively quoted from Moore’s Federal Practice treatise which sets forth the various grounds a court should consider in granting a motion under Rule 60(b). [343]*343However, Professor Moore specifically points out that Rule 60(b) is not a substitute for an appeal. Gould at 356.

The court will carefully weigh both sides of the argument. On the trustee’s side of the scale are the points that the rule should be liberally construed for the purpose of doing substantial justice and that there are apparently no substantial intervening equities which would make it inequitable to grant relief. The other side of the scale, however, carries heavier weight. The principles of finality and predictability dictate that a final judgment should not be lightly disturbed. This consideration is reemphasized by Professor Moore when he cautions “that the principle of finality of judgments serves a most useful purpose for society, the courts, and the litigants — in a word, for all concerned.” Gould at 356. Professor Moore advises that the court should also consider:

1. “Whether in the particular case the interest of deciding cases on the merits outweighs the interest in orderly procedure and in the finality of judgments.” Gold at 356. In this case, it does not.

2. “Whether the movant had a fair opportunity to present his claim.” Gold at 356. The court believes he did.

3. Whether “the motion is made within a reasonable time[?]” Gold at 356. Under the circumstances of this case, raising the point of mistake of fact at this stage of the proceedings is not within a reasonable time. The trustee had ample opportunity to study the record. In fact, he had in excess of two years to prepare his case. Such preparation should include knowing when the statute of limitations begins to run. After filing the original complaint two years and two days after the date set forth in the complaint as the date commencing the statute of limitations, the trustee presented the argument that the complaint was properly filed under Rule 6(a), Fed.R.Civ.P. No doubt, a body of caselaw exists in support of the trustee’s argument under Rule 6(a). In rejecting this line of opinion, this court felt the other view was the better view and decided the case accordingly.

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57 B.R. 341, 1986 Bankr. LEXIS 6755, Counsel Stack Legal Research, https://law.counselstack.com/opinion/judson-v-international-terminal-operating-co-in-re-oro-import-co-flsb-1986.