Riccitelli v. Girard Savings Bank (In re Riccitelli)

241 B.R. 343, 1999 Bankr. LEXIS 1444, 35 Bankr. Ct. Dec. (CRR) 58
CourtUnited States Bankruptcy Court, D. Vermont
DecidedNovember 9, 1999
DocketBankruptcy No. 95-10030RLK; Adversary No. 98-1005
StatusPublished

This text of 241 B.R. 343 (Riccitelli v. Girard Savings Bank (In re Riccitelli)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, D. Vermont primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Riccitelli v. Girard Savings Bank (In re Riccitelli), 241 B.R. 343, 1999 Bankr. LEXIS 1444, 35 Bankr. Ct. Dec. (CRR) 58 (Vt. 1999).

Opinion

RULING ON MOTION FOR ENTRY OF FINAL JUDGMENT

ROBERT L. KRECHEVSKY, Bankruptcy Judge.1

I.

Issue

The issue before the court is whether Green Mountain Power Corporation (the “Defendant”) is entitled to the entry of final judgment pursuant to Fed.R.Civ.P. 54(b) on the amended complaint (the “Amended Complaint”) filed by Carl Ricci-telli, the debtor in this chapter 13 case (the “Debtor”). This court (Conrad, J.) previously granted summary judgment in favor of the Defendant on all counts against the Defendant in the Amended Complaint.

II.

Background

The following background is derived from the court record in this proceeding. On or about January 13, 1998, the Debtor initiated an adversary proceeding against the Defendant, alleging that the Defendant was responsible for the destruction by fire of the Debtor’s house located in Wilmington, Vermont. The Debtor’s complaint (the “Complaint”) asserted claims against the Defendant sounding in trespass, negligence, breach of warranty, strict products liability, and intentional or negligent infliction of emotional distress.

On or about August 13, 1998, the Debtor filed the Amended Complaint, asserting claims, in addition to those asserted against the Defendant, against Girard Savings Bank (“Girard”) and Wilshire Credit Corp. (“Wilshire,” and together with Gir-ard, the “Other Defendants”),2 alleging that those parties breached an obligation to insure his home for his benefit. The Debtor’s claims against Wilshire and Gir-ard (insurance of the home for the Debt- or’s benefit), although arising from the fire at the Debtor’s home, clearly were entirely different from the claims against the Defendant (liability for causing fire).

On or about May 6, 1999, the Defendant filed a motion for summary judgment, and on June 17, 1999, after oral argument, the court (Conrad, J.) ruled from the bench, granting summary judgment to the Defendant on all counts in the Amended Complaint. Judge Conrad signed a separate order entered on July 2, 1999. Judge Conrad also granted partial summary judgment to the Other Defendants, reserving for another day an issue (the “Accounting Issue”) of:

whether the [Other] Defendants obtained the full amount of the available insurance proceeds from their insurance company, and how those proceeds were applied to the Debtor’s loan, in order to determine what amount, if any, the Debtor may still owe to the [Other] Defendants.

June 30, 1999 Order Granting Girard Savings Bank and Wilshire Credit Corporation’s Motion for Summary Judgment.

On July 13, 1999, the Debtor filed a notice of appeal of Judge Conrad’s order granting summary judgment in favor of the Defendant. The Debtor, on July 22, 1999, filed a motion to dismiss his appeal as premature because the order in favor of the Defendant was not a final order. On August 10, 1999, the Bankruptcy Appellate Panel for the Second Circuit dismissed the appeal, without prejudice, as untimely.

The Debtor, on July 26, 1999, filed a motion to vacate Judge Conrad’s summary judgment order in favor of the Defendant. At a hearing on September 22, 1999, this court (Krechevsky, J.) denied the Debtor’s motion to vacate. The court further di[346]*346rected that the Debtor, Girard and Wil-shire submit a scheduling order regarding discovery, dispositive motion deadlines and a trial date, all with respect to the Accounting Issue.

On September 30, 1999, the Defendant filed the present motion for an order pursuant to Fed.R.Civ.P. 54(b) directing entry of final judgment with respect to the Debt- or’s claims against the Defendant. The Debtor filed an objection to the motion and the court heard oral argument on October 13, 1999, after which it reserved decision.

III.

Discussion

A.

Fed.R.Civ.P. 54(b), which applies in bankruptcy adversary proceedings by virtue of Fed. R. Bankr.P. 7054(a), states in relevant part as follows:

When more than one claim for relief is presented in an action, whether as a claim, counterclaim, cross-claim or third-party claim, or when multiple parties are involved, the court may direct the entry of a final judgment as to one or more but fewer than all of the claims or parties only upon an express determination that there is no just reason for delay and upon an express direction for the entry of judgment.

Fed.R.CivJP. 54(b).

“Rule 54(b) provides an exception to the general principle that a final judgment is proper only after the rights and liabilities of all the parties to the action have been adjudicated. It empowers the district court to enter a final judgment as to fewer than all of the parties in an action, but ‘only upon an express determination that there is no just reason for delay.’” Hogan v. Consolidated Rail Corp., 961 F.2d 1021, 1024-25 (2nd Cir.1992) (citation omitted).

In analyzing whether a Rule 54(b) final judgment should be entered “[a] district court must first determine that it is dealing with a ‘final judgment’ in the sense that it is a decision on a cognizable claim for relief, and it must be ‘final’ in the sense that it is ‘an ultimate disposition of an individual claim entered in the course of a multiple claims action.’” Curtiss-Wright Corp. v. General Electric Co., 446 U.S. 1, 7, 100 S.Ct. 1460, 64 L.Ed.2d 1 (1980) (citation omitted). “One way to approach the finality issue is to imagine that the adjudicated claims had been brought in a separate, independent action. If the adjudication would be final in such a hypothetical independent action, it is final for the purposes of certification under Rule 54(b).” 10 Moore’s Federal Practice ¶ 54.22[2][a] at 54-43.

After determining that the finality requirement is met, the court must make an “express determination that there is no just reason for delay.” Hogan, 961 F.2d at 1025 (citation omitted). That test has been satisfied where there are “interestfs] of sound judicial administration and efficiency to be served ... or in the infrequent harsh ease, ... where there exists some danger of hardship or injustice through delay which would be alleviated by immediate appeal.” Id. (internal citations and quotations omitted); see also Washington Elec. Co-op. v. Mass. Mun. Wholesale Elec., 894 F.Supp. 777, 792-93 (D.Vt.1995) (quoting extensively from Hogan).

B.

The court must first determine whether there has been a final decision “disposing of one or more claims or one or more parties in a multi-claim or multi-party action.” 10 Moore’s Federal Practice ¶ 54.21 [2] at 54-37 (3d ed.1999).

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Related

Curtiss-Wright Corp. v. General Electric Co.
446 U.S. 1 (Supreme Court, 1980)
Hogan v. Consolidated Rail Corp.
961 F.2d 1021 (Second Circuit, 1992)

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Bluebook (online)
241 B.R. 343, 1999 Bankr. LEXIS 1444, 35 Bankr. Ct. Dec. (CRR) 58, Counsel Stack Legal Research, https://law.counselstack.com/opinion/riccitelli-v-girard-savings-bank-in-re-riccitelli-vtb-1999.