Weston v. Mann (In Re Weston)

139 B.R. 543, 1992 U.S. Dist. LEXIS 5904, 1992 WL 84943
CourtDistrict Court, D. Utah
DecidedApril 22, 1992
Docket91-C-722B
StatusPublished
Cited by5 cases

This text of 139 B.R. 543 (Weston v. Mann (In Re Weston)) is published on Counsel Stack Legal Research, covering District Court, D. Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Weston v. Mann (In Re Weston), 139 B.R. 543, 1992 U.S. Dist. LEXIS 5904, 1992 WL 84943 (D. Utah 1992).

Opinion

MEMORANDUM DECISION AND ORDER

BENSON, District Judge.

On April 9, 1992, the court heard oral argument on two motions filed by appellees Roger A. Mann, Robert A. Nickerson, Patricia Stoltenberg, Herbert Stoltenberg, Edwin Stoltenberg, Delford Ashley, Sam Hambarian, Alyce Hambarian, Lionel Ascher, Samuel Harmatz, Bernard Hodowski, Chris Waugh, H.E. Moses, and Harmatz & Hodowski, a partnership, (“the electing creditors”). Pending before the court were appellees’ Motion for Summary Dismissal of Untimely Appeal of the debtor, W. David Weston, and appellees’ Motion to Dismiss Appeal of appellants Harold Masunaga, Yukio Ayabe, Marion Harada, Resource Concepts, and George Pingree (“the surety creditors”). Gerald Suniville and Eric Olsen represented the electing creditors. Richard Bigelow represented the surety creditors. The debtor, W. David Weston, appeared pro se.

*545 Having reviewed the memoranda submitted by the parties, having heard oral argument from counsel, being fully apprised, and for good cause appearing, the court makes the following findings and enters the following MEMORANDUM DECISION and ORDER:

Background

On September 11,1990, the debtor filed a Chapter 11 petition for bankruptcy. This petition was converted to a Chapter 7 liquidation bankruptcy on October 22, 1990. On November 26, 1990, a meeting of the creditors was held. At that meeting, John B. Maycock was nominated and elected as permanent trustee. The surety creditors and the debtor opposed the election of Mr. Maycock and disputed the results of the election.

On December 17, 1990, the bankruptcy court held a hearing to determine the election dispute. The debtor appeared at the hearing and opposed the election of Mr. Maycock. The surety creditors did not appear at the hearing. The court, announcing its decision from the bench, found that the election of Mr. Maycock was proper, and approved his selection as trustee.

Subsequent to the hearing, the court’s decision was entered in two different written Orders. Each Order affirms the approval of Mr. Maycock as trustee of the bankruptcy estate.

The first Order (“the December 20 Order”) was submitted to the court as a proposed Order by the United States Trustee. No copies of the proposed Order were sent to the other parties to the dispute. The Order was signed by the court on December 20, 1990, and entered on the docket on December 21, 1990. Copies of the signed Order were sent to the parties on December 20, 1990.

The second Order (“the January 12 Order”) was submitted to the court by the electing creditors on December 21, 1990. Although no copies of this proposed Order were sent to the parties, each party received a copy of the cover letter accompanying the proposed Order. The letter informed the parties that a generic order, approving the election of Mr. Maycock as trustee, had been submitted to the court. The court did not sign the proposed Order until January 12, 1991. The Order was entered on the docket on January 16, 1991.

The debtor filed nothing with the court until January 22, 1991. On that date, he filed a memorandum entitled Debtor’s Objection to the Proposed Order ... and Motion for Findings. The memorandum was dated January 18, 1991. The memorandum objected to the form of the proposed Order submitted by the electing creditors and requested that the bankruptcy court make findings as to why it had approved Mr. Maycock’s election. This objection, however, was filed ten days after the January 12 Order had been signed, and more than one month after the Order had been submitted to the bankruptcy court.

On January 29, 1991, the debtor filed a Motion to Reconsider or Amend the January 12, 1991, Order. This motion was filed 13 days after the January 12 Order was entered on the docket. At a hearing on March 11, 1991, the bankruptcy court denied the motion to reconsider. The bankruptcy court stated that the motion.was untimely because it was not filed within ten days of the December 20 Order. A written Order reflecting this decision was signed on June 8, 1991, and entered on the docket on June 11, 1991.

The debtor and the surety creditors (“appellants”) filed notices of appeal on June 13, and June 25, 1991, respectively. The electing creditors (“appellees”) responded by filing motions to dismiss the appeals as untimely.

Discussion

The time for filing a notice of appeal is governed by Rule 8002 of the Bankruptcy Rules. Pursuant to Rule 8002(a), a notice of appeal must be filed within ten days of entry of the Order appealed from. If, however, an appropriate Rule 8002(b) motion to reconsider is filed within the ten days, the time for appeal does not begin to run until entry of the Order denying or granting the motion to reconsider.

*546 The timeliness of a filing under Rule 8002 is critical. The court has no jurisdiction to hear an appeal which is not timely filed. Accordingly, the requirements of Rule 8002 must be strictly construed. See In re Slimick, 928 F.2d 304, 306 (9th Cir.1990).

The issue confronting this court is whether the time for appeal runs from the entry of the December 20 Order, or from the entry of the January 12 Order. If the time for appeal is based on the December 20 Order, both appeals are untimely and must be dismissed for lack of jurisdiction. If, however, the time for appeal is based on the January 12 Order, there remains an issue as to whether the debtor filed a Rule 8002(b) motion within the ten day period.

Appellees argue that the time for appeal expired ten days after entry of the December 20 Order. They submit that the December 20 Order was a final disposition of the matter, and thus commenced the time for appeal.

Appellants maintain that the time for appeal commenced upon the entry of the January 12 Order. First, they argue that the December 20 Order is invalid. Next, they assert that the entry of the January 12 Order commenced a new ten day period for appeal. Finally, it is argued that even if the appeals are found to be untimely, this court should allow the appeals under the doctrine of “unique circumstances.”

Accordingly, there are three issues which must be considered by the court: (1) whether the December 20 Order is valid, (2) whether the entry of the January 12 Order affects the time for appeal, and (3) whether the court should allow an untimely appeal under the doctrine of unique circumstances.

1. The Validity of the December 20 Order

Appellants claim that the December 20 Order is defective and void. They argue that procedural improprieties in the way the Order was submitted and entered by the bankruptcy court render the Order invalid.

First, they assert that the United States trustee lacked standing to submit a proposed Order to the court. The trustee was not a party to the election dispute and had no standing to appeal the decision. Accordingly, it is argued, it was improper for the trustee to submit a proposed Order to the court.

Next, appellants argue that the submission and entry of the proposed Order were in violation of Rule 13 of the Local Rules for the District of Utah. 1

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139 B.R. 543, 1992 U.S. Dist. LEXIS 5904, 1992 WL 84943, Counsel Stack Legal Research, https://law.counselstack.com/opinion/weston-v-mann-in-re-weston-utd-1992.