Santana v. Santander Fin. Servs., Inc. (In re Santana)

309 F. Supp. 3d 6
CourtUnited States District Court
DecidedMay 4, 2018
DocketAPPEAL NO. 18–1082 (GAG); BANKR. CASE NO. 16–9874
StatusPublished

This text of 309 F. Supp. 3d 6 (Santana v. Santander Fin. Servs., Inc. (In re Santana)) is published on Counsel Stack Legal Research, covering United States District Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Santana v. Santander Fin. Servs., Inc. (In re Santana), 309 F. Supp. 3d 6 (usdistct 2018).

Opinion

GUSTAVO A. GELPI, United States District Judge

German Rosado Santana and Lilian Alejandro Diaz ("Debtors/Appellants") filed a voluntary petition under Chapter 11 of the Bankruptcy Code. Bankr. Case No. 16-9874. On December 1, 2017, the bankruptcy court granted Creditor's motion to lift the automatic stay. Two weeks later, Debtors filed a motion for reconsideration, which the bankruptcy court denied on January 26, 2018. (Docket No. 1-1).1 On February 9, 2018, Debtors filed a notice of appeal of the order lifting the stay and the order denying the reconsideration. Id. Appellee moves to dismiss this appeal for lack of subject matter jurisdiction because it was time-barred. (Docket No. 5). For the reasons below Appellee's motion to dismiss is DENIED .

I. Standard of Review

District courts have jurisdiction over appeals from final judgments, orders, and decrees of the bankruptcy court. 28 U.S.C.A. § 158. Orders granting stay relief are considered "final and appealable." In re Atlas IT Export Corp., 761 F.3d 177, 182 (1st Cir. 2014). When jurisdiction is proper, Appellate courts reviewing a bankruptcy *8appeal generally apply the "clearly erroneous" standard to findings of fact and de novo review to conclusions of law. TI Fed. Credit Union v. Del Bonis, 72 F.3d 921, 928 (1st Cir. 1995) ; In re Savage Indus., Inc., 43 F.3d 714, 719-20 n.8 (1st Cir. 1994). In addition to the clearly erroneous and de novo standards of review, "[t]he appellate court in a bankruptcy appeal may apply an abuse of discretion standard of review of a decision or action by a Bankruptcy Court when such decision is within the discretion of the Bankruptcy Court." Id. (quoting 9E Am. Jur. 2d Bankruptcy § 3512 (2004) ).

II. Relevant Factual Background

Appellee filed a motion seeking relief from the automatic stay under 11 U.S.C. § 362(d)(1), (d)(4). (Docket No. 1-4 at 8). The bankruptcy court held a hearing on August 29, 2017, and stated in its minutes that the parties had thirty days to reach an agreement, otherwise the stay would be lifted automatically. Id. at 10 ( "Upon the reasons stated in open court, parties are granted thirty (30) days to file stipulation or joint motion for consent judgment. Upon failure to so file, the stay is lifted automatically."). For simplicity, the Court shall refer to the August 29 Order as Order # 1.

On September 12, 2017, Appellants filed a motion for reconsideration as to Order # 1 asking the bankruptcy court to amend the hearing's minute. (Id. at 11). According to Appellants, the minutes' assertion that the stay would lift automatically inaccurately reflected what was said in court. (Docket No. 5-2 at 2). Without ruling on Appellants' motion, the bankruptcy court amended the minutes on November 28, 2017. (Docket No. 1-4 at 12). In relevant part, the amended minutes state: "If no agreement is reached, the Court will lift the stay under § 362(d)(l)." (Docket No. 1-4 at 11) (emphasis added).

Three days later, on December 1, the bankruptcy court entered an order stating that it had amended the minutes, and therefore, Appellant's motion for reconsideration was moot. id. at 12. In the same order, it also granted Appellee's motion to lift the stay. Id. ("The Motion to Lift of Stay, docket entry No. 52, is granted and the stay is lifted under 11 U.S.C. § 362 (d)(1) in favor of [Appellee].") (emphasis added). For simplicity, the Court will refer to this order as Order # 2.

Appellants filed a motion for reconsideration as to Order # 2 on December 15, 2017. (Docket No. 5-6 at 7 ("requesting the Court to reconsider its Stay Order" issued on December 1) ). Appellee opposed the motion for reconsideration, labeling it as a second motion for reconsideration against Order # 1. The bankruptcy court agreed with Appellee and denied the motion "for the reasons [Appellee] stated" on January 26, 2018. (Docket No. 1-3). On February 9, 2018, Appellants appealed Order # 2 and the bankruptcy court's denial of its motion for reconsideration of Order # 2. (Docket No. 1-1).

In sum, the dispositive timeline is as follows:

• August 29: Order # 1 (stay will be lifted unless conditions are met)
• September 12: Motion for reconsideration of Order # 1 (stating that minutes were inaccurate).
• December 1: Order # 2 (finding conditions were not met, lifting stay)
• December 15: Motion for reconsideration of Order # 2.
• January 26: Motion for reconsideration regarding Order # 2 denied.
• February 9: Appeal of Order # 2 and appeal of denial of motion for reconsideration regarding Order # 2.

*9III. Discussion

Appellee argues that the Court lacks subject matter jurisdiction over this appeal because it was untimely. Rule 8002 of the Federal Rules of Bankruptcy Procedure establishes a general fourteen-day period to file a notice of appeal from the date of entry of a judgment, order, or decree, which includes an order granting stay relief. See In re Atlas IT Export Corp., 761 F.3d at 182 ; FED. R. BANKR. P. 8002.

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309 F. Supp. 3d 6, Counsel Stack Legal Research, https://law.counselstack.com/opinion/santana-v-santander-fin-servs-inc-in-re-santana-usdistct-2018.