McCarthy v. Prince (In Re McCarthy)

230 B.R. 414, 99 Cal. Daily Op. Serv. 1407, 99 Daily Journal DAR 1844, 41 Collier Bankr. Cas. 2d 613, 1999 Bankr. LEXIS 135, 33 Bankr. Ct. Dec. (CRR) 1206, 1999 WL 98609
CourtUnited States Bankruptcy Appellate Panel for the Ninth Circuit
DecidedFebruary 2, 1999
DocketBAP No. CC-98-1400-KMeB, Bankruptcy No. SV-96-15656-AG, Adversary No. 98-01165-AG
StatusPublished
Cited by110 cases

This text of 230 B.R. 414 (McCarthy v. Prince (In Re McCarthy)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Appellate Panel for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McCarthy v. Prince (In Re McCarthy), 230 B.R. 414, 99 Cal. Daily Op. Serv. 1407, 99 Daily Journal DAR 1844, 41 Collier Bankr. Cas. 2d 613, 1999 Bankr. LEXIS 135, 33 Bankr. Ct. Dec. (CRR) 1206, 1999 WL 98609 (bap9 1999).

Opinion

OPINION

KLEIN, Bankruptcy Judge.

This appeal from the remand to state court of a removed lawsuit presents the problem of what happens when the appellant does not provide the record that the rules of procedure require.

The appellant hamstrung himself in his effort to show that the bankruptcy court erred when he failed to designate and provide us "with the transcript of the oral findings of fact and conclusions of law required by Federal Rules of Bankruptcy Procedure 8006 and 8009. As the appellate record does not on its face suggest that the remand was infected by error, we AFFIRM.

Jurisdiction

Original subject-matter jurisdiction was founded on 28 U.S.C. § 1334(b). We have jurisdiction under 28 U.S.C. § 158.

Standard of Review

Decisions to remand under 28 U.S.C. § 1452(b) are committed to the sound discretion of the bankruptcy judge and are reviewed for abuse of discretion. See Bethlah-my v. Kuhlman (In re ACI-HDT Supply Co.), 205 B.R. 231, 234 (9th Cir. BAP 1997).

Facts

The debtor, Charles McCarthy, and his nondebtor spouse were sued in state court by a judgment creditor, Martha-Helen Prince (“Prince”), to recover a debt that the bankruptcy court had determined to be nondis-chargeable under 11 U.S.C. § 523(a)(4).

In the state court lawsuit, Prince asserted four causes of action: fraudulent transfer; liability under California Family Code § 1000; liability under California Code of Civil Procedure § 708.210; and declaratory relief. The goal of the action was to reach property in the hands of the nondebtor spouse.

The debtor removed the state court action to bankruptcy court pursuant to 28 U.S.C. § 1452(a). Prince filed a motion to remand the action to state court, citing both abstention under 28 U.S.C. § 1334(c) and remand under the “any equitable ground” standard of 28 U.S.C. § 1452(b).

The bankruptcy court ordered the action remanded to state court following a hearing at which it rendered findings of fact and conclusions of law orally on the record. Those findings have not been made part of the appellate record. The ensuing order directed a remand and made no mention of abstention.

The debtor appealed.

Discussion

This appeal smacks of ships passing in the night. The order remands a lawsuit to the state court whence it was removed under 28 U.S.C. § 1452, which permits remand on “any equitable ground.” 28 U.S.C. § 1452(b). The appellant ignores § 1452(b) and, instead, attempts to debate mandatory abstention under 28 U.S.C. § 1334(c)(2) and to question Prince’s standing to pursue the fraudulent conveyance count.

I

The key procedural problem in this appeal is that the appellant failed to designate and provide record materials that are required by *417 governing rules of procedure. The face of the remand order reflects that the court made findings of fact and conclusions of law orally on the record. No transcript of the court’s oral findings of fact and conclusions of law was designated for inclusion in the appellate record, and no copy was provided in the appendix to the appellant’s brief.

Federal Rule of Bankruptcy Procedure 8006 requires that an appellant designate a record that includes both “any opinion, findings of fact, and conclusions of law of the court” and any transcript that will be needed. Fed.R.Bankr.P. 8006. These items are mandatory, not optional. The appellant did neither.

Whenever findings of fact and conclusions of law are rendered orally on the record, it is mandatory that an appellant designate the transcript under Rule 8006. There is no other way for an appellate court to be able to fathom the trial court’s action.

Similarly, Federal Rule of Bankruptcy Procedure 8009(b)(5) requires that in any appeal to a bankruptcy appellate panel there be an appendix of excerpts of the record that includes the “opinion, findings of fact, or conclusions of law filed or delivered orally” by the court. Fed.R.Bankr.P. 8009(b)(5). This is also mandatory, not optional. The appellant’s appendix omits the findings and is, as a matter of law, incomplete. See Kritt v. Kritt (In re Kritt), 190 B.R. 382, 386 (9th Cir. BAP 1995); Burkhart v. FDIC (In re Burkhart), 84 B.R. 658, 661 (9th Cir. BAP 1988). The burden is on the appellant.

The court’s oral findings on the remand order unambiguously qualify as findings of fact and conclusions of law within the meaning of Rule 8006. They are the findings that are required under Federal Rule of Civil Procedure 52(a), which applies in bankruptcy contested matters by way of Federal Rules of Bankruptcy Procedure 9014 and 7052. And a motion to remand is a contested matter governed by Rule 9014. Fed.R.Bankr.P. 9027(d).

The appellant’s failure to provide the one document that would directly identify the manner in which the bankruptcy court exercised its discretion entitles us to dismiss this appeal. Syncom Capital Corp. v. Wade, 924 F.2d 167, 169 (9th Cir.1991); Southwest Administrators, Inc. v. Lopez, 781 F.2d 1378, 1378-80 (9th Cir.1986).

If we do not dismiss, we are entitled to presume that the appellant does not regard the court’s findings of fact and conclusions of law as helpful to his appeal. Gionis v. Wayne (In re Gionis), 170 B.R.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
230 B.R. 414, 99 Cal. Daily Op. Serv. 1407, 99 Daily Journal DAR 1844, 41 Collier Bankr. Cas. 2d 613, 1999 Bankr. LEXIS 135, 33 Bankr. Ct. Dec. (CRR) 1206, 1999 WL 98609, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mccarthy-v-prince-in-re-mccarthy-bap9-1999.