Maxon Engineering Services, Inc. v. Municipality of Aibonito

397 B.R. 623, 2008 U.S. Dist. LEXIS 106314
CourtDistrict Court, D. Puerto Rico
DecidedNovember 17, 2008
DocketCivil Nos. 08-1733 (SEC), 08-1741(SEC)
StatusPublished
Cited by2 cases

This text of 397 B.R. 623 (Maxon Engineering Services, Inc. v. Municipality of Aibonito) is published on Counsel Stack Legal Research, covering District Court, D. Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Maxon Engineering Services, Inc. v. Municipality of Aibonito, 397 B.R. 623, 2008 U.S. Dist. LEXIS 106314 (prd 2008).

Opinion

OPINION AND ORDER

SALVADOR E. CASELLAS, Senior District Judge.

Pending before the Court are two appeals (Cases Nos. 08-1733 & 08-1741) filed by Noreen Wiscovitch-Rentas, Debtor Maxon Engineering Services, Inc.’s Chapter 7 Trustee (hereinafter referred to as “Appellant”). Appellant appeals the Orders and Judgments issued by the United States Bankruptcy Court for the District of Puerto Rico dismissing certain adversary proceedings brought against Appellee Municipality of Aibonito (hereinafter referred to as “Appellee”). 1 On October 9, 2008, Appellant filed a motion requesting the consolidation of cases nos. 07-1733, OS-1734, 08-1736, 08-1737-08-1738, 08-1739, 08-1740 and 08-1742 filed before this Court, and an extension of time to file the appellant brief. Case No. 08-1733, Docket # 8; Case No. 08-1741, Docket # 4. Ap-pellee filed an opposition thereto and requested the dismissal of the case for want of prosecution. Case No. 08-1733, Docket # 9; Case No. 08-1741, Docket # 5. After reviewing the filings and the applicable law, Appellee Municipality of Aibonito’s request for dismissal is GRANTED.

Factual and Procedural Background

Case No. 08-17S3

On July 7, 2008, Appellant filed a notice of appeal of the Bankruptcy Court’s Order and Judgment granting Appellee’s motions for summary judgment and for entry of judgment. Case No. 04-4781(GAC), ADV. 07-00138. The Bankruptcy Court conclud *625 ed that Appellant’s claims were time barred pursuant to 11 U.S.C. § 549(d). Pursuant to section 549(d), an action or proceeding seeking avoidance of post-petition transactions or transfers based on a pre-petition debt “may not be commenced after the earlier of (1) two years after the date of the transfer sought to be avoided; or (2) the time the case is closed or dismissed.” Since the post-petition transfers the Appellant sought to avoid were made on May 7 and June 1, 2004, and the adversary proceeding seeking their avoidance was commenced on June 10, 2007, the Bankruptcy Court concluded that Appellant’s claims were time-barred and dismissal was warranted.

Upon the entry of the appeal in the docket, this Court notified Appellant that the appellant’s brief was due by 7/28/2008. Docket # 1. This Court notes that Appellant did not request an extension of time within the period of 15 days to file the brief as required by Fed. R. BankR.R 8009(a). Furthermore, to this date, Appellant has not filed the appellant brief.

Case No. 08-17hi

On July 7, 2008, Appellant filed a notice of appeal of the Bankruptcy Court’s Order and Judgment dismissing Appellant’s adversary proceeding seeking the return of a post-petition transfer based on a pre-petition debt. Case No. 04-478KGAC), ADV. 07-202. The Bankruptcy Court noted that pursuant to 11 U.S.C. § 546(a), the limitations period for an action under 11 U.S.C. § 547, seeking avoidance of a post-petition transfer based on a pre-petition debt, is two years after the entry of the order for relief, or one year after the appointment of a Chapter 7 Trustee, if the trustee is appointed within the initial two year period. Since the action commenced by the Trustee did not comply with any of the before mentioned requisites, the Bankruptcy Court concluded that pursuant to 11 U.S.C. § 546(a) the action was time-barred. Furthermore, the Bankruptcy Court held that the doctrine of equitable tolling was inapplicable to Appellant’s action because there had been no showing that the defendants had engaged in any wrongful conduct. As such, the Bankruptcy Court dismissed the adversary proceeding.

On July 7, 2008, upon entry of the appeal in the docket, this Court notified Appellant that the appellant’s brief was due by 7/28/2008. Docket # 1. Appellant failed to comply with said order, and as a result, on August 28, 2008, the Court issued an order for Appellant to show cause as to why the appeal should not be dismissed for lack of prosecution. Docket #2. In response to the Court’s order, Appellant alleged that “it neglected to file the Appellant Brief due to a huge volume of adversary proceedings filed in the instant case, the intense litigation produced by the sale and exportation of the Power Plant, the trips to Santo Domingo, and the fact that the related appeals are still being transferred to different Judges.” Docket # 3. As such, Appellant requested an additional 5 days to file the appellant’s brief and to request the consolidation of the appeals filed before the Court. Docket # 3. However, to this date, Appellant has not filed the appellant brief.

On October 9, 2008, three months after the filing of the instant appeals, Appellant filed the motion to consolidate cases 07-1733, 08-1734, 08-1736, 08-1737-, 08-1738, 08-1739, 08-1740 and 08-1742 pending before the Court. Case No. 08-1731, Docket # 8; Case No. 08-1741, Docket # 4. Appellant avers that the before mentioned appeals, as well as an additional six appeals that will be filed with the Court, share common issues of fact and law and, as such, should be consolidated. Appellant also petitions the Court to grant leave to *626 file only one brief once all appeals have been duly filed and consolidated.

Appellee filed a memorandum in opposition to Appellant’s motion for consolidation and requested the dismissal of the instant appeals per Fed. R. Civ. P. 41(b), due to Appellant’s failure to prosecute the cases and to comply with this Court’s orders. Case No. 08-1731, Docket # 9; Case No. 08-1741, Docket # 5. According to Appel-lee, a request for consolidation under Fed. R. Civ. P. 42 cannot be granted as to actions that are not before the Court, thus Appellant’s request for consolidation of appeals that have yet to be filed is premature and should be denied. Appellee also contends that Appellant has failed to file the appellant brief within the ten day period provided by Fed. R. Bankr. R. 8009(a), despite the Court’s orders to that effect. Hence, Appellee requests the dismissal of the instant case for want of prosecution.

Applicable Law and Analysis

Fed. R. BANKR.R. 8009(a) provides that “[ujnless the district court or the bankruptcy appellate panel by local rule or by order excuses the filing of briefs or specifies different time limits: (1) The appellant shall serve and file his brief within 15 days after entry of the appeal in the docket pursuant to Rule 8007.” This Court has held “that it is proper to dismiss an appellant’s appeal for failure to file a brief or request an extension within the time allotted by the Bankruptcy Rules.” In re Quevedo (Cesar J. Otero), 35 B.R. 117, 120 (D.Puerto Rico 1983). The Court has also emphasized the importance of enforcing these types of procedural rules even when doing so may seem harsh. Rodríguez-Quesada v. U.S. Trustee, 222 B.R.

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Bluebook (online)
397 B.R. 623, 2008 U.S. Dist. LEXIS 106314, Counsel Stack Legal Research, https://law.counselstack.com/opinion/maxon-engineering-services-inc-v-municipality-of-aibonito-prd-2008.