MEMORANDUM OPINION
THOMAS SELBY ELLIS, III, District Judge.
At issue in this Chapter 7 bankruptcy appeal is whether an appellant has standing to appeal an order of the bankruptcy court authorizing interim distribution of a claim where, as here, the appellant failed to file an objection to the claim as required by the bankruptcy court’s order and then failed to appear and object at the hearing on the trustee’s motion for interim distribution of the claim.
I.
Appellant Theodore White was the majority shareholder of Urban Broadcasting Corporation (UBC), an affiliate of the Home Shopping Network, and the owner and operator of a Washington, D.C. UHF television station. On August 1, 2000, UBC filed a bankruptcy petition in this district seeking reorganization under Chapter 11 of the Bankruptcy Code, 11 U.S.C. § 1101
et seq.
On August 23, 2003, UBC’s petition was converted to a Chapter 7 petition.
See
11 U.S.C. § 1112.
More than a year after UBC filed its Chapter 11 petition, the appellee, Univision of Virginia, Inc. (Univision), a subsidiary of USA Networks, Inc., filed a timely proof of claim against UBC on October 17, 2001 in the amount of $7.9 million.
Univision’s claim arose from an agreement entered into between UBC and Silver King Broadcasting of Virginia, Inc., Univision’s predecessor in interest, on August 21, 1989. Pursuant to that agreement, Silver King had a right to “put” or sell its shares in UBC to UBC and, in the event certain triggering events occurred, UBC had a corresponding obligation to purchase Silver King’s UBC shares for 45% of the fair market value of UBC. The agreement also provided that Silver King’s right to exercise the “put” option would be deemed waived in the event that UBC exercised its “call” option under the agreement.
In its October 17 proof of claim, Univision asserted that as Silver King’s successor in interest it was entitled to exercise its “put” right under the agreement because the circumstances triggering the “put” right had occurred, namely (1) UBC had defaulted on its long term debt and (2) UBC had ceased its affiliation with HSN or one of HSN’s subsidiaries. UBC, however, disputed Univision’s right to exercise the “put” option pursuant to the terms of the agreement and filed a timely objection to Univision’s proof of claim on December 18, 2001. The merits of Univision’s claim were litigated in the bankruptcy court for the next year and a half in connection with hearings regarding the confirmation of competing Chapter 11 reorganization
plans. Despite this lengthy period of litigation, the claim was never resolved. The primary disputed issue was whether Univision was the proper successor in interest to Silver King and thus had rights under the put-call agreement.
In the course of the Chapter 7 proceedings, UBC’s assets were sold and its creditors paid. Once all UBC’s creditors had been paid from the proceeds of the sale of UBC’s assets, the Chapter 7 trustee filed a Motion for Interim Distribution in the bankruptcy court on April 1, 2003 seeking to distribute the debtor’s surplus funds to White and Univision as shareholders.
The Chapter 7 trustee concluded that White was entitled to 55% of UBC’s remaining assets and Univision was entitled to 45%. Yet, Univision opposed the trustee’s motion on the ground that it should be paid as a creditor, not a shareholder. Univision, it seems, took this position because distribution as a shareholder might not have a
res judicata
effect with regard to Univision’s rights under the put-call agreement and thus Univision was concerned that it would remain subject to possible future litigation by White, whom it considered to be aggressively litigious.
Because of Univision’s objection to the Chapter 7 trustee’s Motion for Interim Distribution, the bankruptcy court held a hearing on June 3, 2000. White did not appear at this hearing. The bankruptcy court, concluding that the trustee’s motion required further hearing, entered an order on June 5, 2003 stating that all objections to Univision’s claim and the trustee’s Motion for Interim Distribution would be heard and resolved at a hearing scheduled for July 22, 2003. Moreover, the June 5 order specifically directed that:
(i) Univision shall file an amended proof of claim by June 13, 2003 “and shall serve a copy of the amended proof of claim on the trustee and Mr. White.”
(ii) The Chapter 7 trustee is substituted for UBC with respect to UBC’s objection to Univision’s proof of claim, but that “[njothing in this Order... requires the trustee to prosecute the objection. ..
(iii) White must file any objection to the allowance of Univision’s claim by July 3, 2003 “or be forever barred.”
(iv) Univision shall give notice to the trustee and Mr. White of the July 3 claim objection bar date and the July 22 claim allowance hearing.
(v) The Clerk shall mail a copy of the order to the trustee, counsel for Univision, and White.
In compliance with the June 5 order, Uni-vision timely filed its amended proof of claim and properly notified White of his obligation to object by July 3 on June 13, 2003. White does not dispute that he received proper notice of the June 5 order prior to the July 3 bar date.
On June 30, 2003, White, by counsel, filed three motions: (1) a motion to extend the July 3 deadline for objecting to Univision’s claim; (2) a motion to postpone the related July 22 hearing date; and (3) a
motion to authorize the trustee to make a partial distribution of the debtor’s estate to White, ostensibly to pay legal fees. Without holding a hearing on White’s motions and by order dated July 1, 2003, the bankruptcy court denied the motions to extend the July 3 deadline and to postpone the July 22 hearing and declined to consider the motion to authorize the trustee to make a partial distribution on an emergency basis. Specifically, the order stated that:
So much of the motion to extend deadline, postpone hearing date, and authorize partial distribution is denied as seeks to extend the deadline for filing an objection to the Univision amended proof of claim and to postpone the hearing on the objection to claim. That portion of the motion seeking authority for the trustee to make a partial distribution may be set for hearing on any regularly scheduled motions day that provides at least 15 days notice to the chapter 7 trustee and Univision.
On July 3, 2003, White, now proceeding
pro
se,
filed a motion seeking reconsideration of the July 1 order.
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MEMORANDUM OPINION
THOMAS SELBY ELLIS, III, District Judge.
At issue in this Chapter 7 bankruptcy appeal is whether an appellant has standing to appeal an order of the bankruptcy court authorizing interim distribution of a claim where, as here, the appellant failed to file an objection to the claim as required by the bankruptcy court’s order and then failed to appear and object at the hearing on the trustee’s motion for interim distribution of the claim.
I.
Appellant Theodore White was the majority shareholder of Urban Broadcasting Corporation (UBC), an affiliate of the Home Shopping Network, and the owner and operator of a Washington, D.C. UHF television station. On August 1, 2000, UBC filed a bankruptcy petition in this district seeking reorganization under Chapter 11 of the Bankruptcy Code, 11 U.S.C. § 1101
et seq.
On August 23, 2003, UBC’s petition was converted to a Chapter 7 petition.
See
11 U.S.C. § 1112.
More than a year after UBC filed its Chapter 11 petition, the appellee, Univision of Virginia, Inc. (Univision), a subsidiary of USA Networks, Inc., filed a timely proof of claim against UBC on October 17, 2001 in the amount of $7.9 million.
Univision’s claim arose from an agreement entered into between UBC and Silver King Broadcasting of Virginia, Inc., Univision’s predecessor in interest, on August 21, 1989. Pursuant to that agreement, Silver King had a right to “put” or sell its shares in UBC to UBC and, in the event certain triggering events occurred, UBC had a corresponding obligation to purchase Silver King’s UBC shares for 45% of the fair market value of UBC. The agreement also provided that Silver King’s right to exercise the “put” option would be deemed waived in the event that UBC exercised its “call” option under the agreement.
In its October 17 proof of claim, Univision asserted that as Silver King’s successor in interest it was entitled to exercise its “put” right under the agreement because the circumstances triggering the “put” right had occurred, namely (1) UBC had defaulted on its long term debt and (2) UBC had ceased its affiliation with HSN or one of HSN’s subsidiaries. UBC, however, disputed Univision’s right to exercise the “put” option pursuant to the terms of the agreement and filed a timely objection to Univision’s proof of claim on December 18, 2001. The merits of Univision’s claim were litigated in the bankruptcy court for the next year and a half in connection with hearings regarding the confirmation of competing Chapter 11 reorganization
plans. Despite this lengthy period of litigation, the claim was never resolved. The primary disputed issue was whether Univision was the proper successor in interest to Silver King and thus had rights under the put-call agreement.
In the course of the Chapter 7 proceedings, UBC’s assets were sold and its creditors paid. Once all UBC’s creditors had been paid from the proceeds of the sale of UBC’s assets, the Chapter 7 trustee filed a Motion for Interim Distribution in the bankruptcy court on April 1, 2003 seeking to distribute the debtor’s surplus funds to White and Univision as shareholders.
The Chapter 7 trustee concluded that White was entitled to 55% of UBC’s remaining assets and Univision was entitled to 45%. Yet, Univision opposed the trustee’s motion on the ground that it should be paid as a creditor, not a shareholder. Univision, it seems, took this position because distribution as a shareholder might not have a
res judicata
effect with regard to Univision’s rights under the put-call agreement and thus Univision was concerned that it would remain subject to possible future litigation by White, whom it considered to be aggressively litigious.
Because of Univision’s objection to the Chapter 7 trustee’s Motion for Interim Distribution, the bankruptcy court held a hearing on June 3, 2000. White did not appear at this hearing. The bankruptcy court, concluding that the trustee’s motion required further hearing, entered an order on June 5, 2003 stating that all objections to Univision’s claim and the trustee’s Motion for Interim Distribution would be heard and resolved at a hearing scheduled for July 22, 2003. Moreover, the June 5 order specifically directed that:
(i) Univision shall file an amended proof of claim by June 13, 2003 “and shall serve a copy of the amended proof of claim on the trustee and Mr. White.”
(ii) The Chapter 7 trustee is substituted for UBC with respect to UBC’s objection to Univision’s proof of claim, but that “[njothing in this Order... requires the trustee to prosecute the objection. ..
(iii) White must file any objection to the allowance of Univision’s claim by July 3, 2003 “or be forever barred.”
(iv) Univision shall give notice to the trustee and Mr. White of the July 3 claim objection bar date and the July 22 claim allowance hearing.
(v) The Clerk shall mail a copy of the order to the trustee, counsel for Univision, and White.
In compliance with the June 5 order, Uni-vision timely filed its amended proof of claim and properly notified White of his obligation to object by July 3 on June 13, 2003. White does not dispute that he received proper notice of the June 5 order prior to the July 3 bar date.
On June 30, 2003, White, by counsel, filed three motions: (1) a motion to extend the July 3 deadline for objecting to Univision’s claim; (2) a motion to postpone the related July 22 hearing date; and (3) a
motion to authorize the trustee to make a partial distribution of the debtor’s estate to White, ostensibly to pay legal fees. Without holding a hearing on White’s motions and by order dated July 1, 2003, the bankruptcy court denied the motions to extend the July 3 deadline and to postpone the July 22 hearing and declined to consider the motion to authorize the trustee to make a partial distribution on an emergency basis. Specifically, the order stated that:
So much of the motion to extend deadline, postpone hearing date, and authorize partial distribution is denied as seeks to extend the deadline for filing an objection to the Univision amended proof of claim and to postpone the hearing on the objection to claim. That portion of the motion seeking authority for the trustee to make a partial distribution may be set for hearing on any regularly scheduled motions day that provides at least 15 days notice to the chapter 7 trustee and Univision.
On July 3, 2003, White, now proceeding
pro
se,
filed a motion seeking reconsideration of the July 1 order. Yet, White did not at this, or any other time, file an objection to Univision’s claim, as the bankruptcy court’s June 9 order had directed.
On July 18, 2003, the Chapter 7 trustee provided formal notice to the bankruptcy court and White that he did not intend to prosecute any objection to Univision’s claim on the ground “there would be no economic benefit to the bankruptcy estate to be gained by prosecution of this objection,” given that White had failed to object to the amended proof of claim and “Univision would be compensated the identical amount whether [paid] as a creditor or as a shareholder.”
It appears from the trustee’s motion that the trustee believed that the issue to be addressed at the July 22 hearing was chiefly whether Univision was to be paid as a shareholder or, alternatively, as a creditor, and not any other objection White might have to Univision’s claim.
The July 22 hearing was held as scheduled and White did not appear.
As a result of the hearing, the bankruptcy court entered an order allowing Univision’s claim and authorizing distribution of $7.9 million to Univision as a creditor of UBC pursuant to its rights under the put-call agreement (July 22 Allowance Order). The remaining UBC assets totaling $8.9
million were distributed to White. Notably, the bankruptcy court in its order reasoned that “the trustee has properly determined not to prosecute the objection to Univision’s claim; that no other party has, within the time allowed by the court, filed an objection to the claim; that in the absence of an objection, the claim is deemed allowed.... ” Although the bankruptcy court heard evidence at the hearing regarding Univision’s claim under the put-call agreement, that claim was not disputed. Accordingly, the bankruptcy court allowed the claim and granted the trustee’s motion to distribute UBC’s assets to Uni-vision in payment of Univision’s claim.
On August 1, 2003, White filed here a timely Notice of Appeal
pro
se.
Since then White has retained new counsel to represent him in this appeal. On September 25, 2003, Univision filed its motion to dismiss White’s appeal on the ground that White lacks standing to prosecute this appeal. Thus, at issue here is whether White lacks standing to appeal and hence whether Univision’s motion to dismiss on that basis must be granted.
II.
The starting point in this analysis is the legal standard governing a party’s standing to appeal in the bankruptcy context. Prior to 1978, the former Bankruptcy Act, 11 U.S.C. § 67(c), explicitly defined the standard governing standing to appeal. Specifically, § 67(c) provided that any “person aggrieved” had standing to appeal an order of the bankruptcy court and the caselaw interpreting this provision defined “persons aggrieved” as those “whose rights or interests are directly and adversely affected pecuniarily by the order or decree of the bankruptcy court.”
McGuirl v. White,
86 F.3d 1232, 1234 (D.C.Cir.1996) (citing
In re El San Juan Hotel,
809 F.2d 151, 154 (1st Cir.1987));
In re Elkins Energy Corp.,
7 B.R. 971, 973 (W.D.Va.1980) (citing 11 U.S.C. § 67 (now repealed) which permits “a person aggrieved” to appeal an order from the bankruptcy court). Yet, in 1978 Congress repealed § 67(c) of the Bankruptcy Act and did not include a provision in the new Act stating a standard for standing to appeal.
See McGuirl,
86 F.3d at 1234-35. Therefore, as Collier’s notes, “[n]o indication is given either in title 11 or title 28 regarding the requisites for standing to appeal an order of the bankruptcy court.” 10
Collier on Bankruptcy
¶ 8001.05 (Alan N. Resnick
&
Henry J. Sommer eds., 15th ed.2003). Nonetheless, it appears that courts have carried forward to today the pre-1978 “person aggrieved” standard and thus have uniformly held that an individual has standing to appeal if his rights or interests are directly and adversely affected pecuni-arily by the order of the bankruptcy court.
While this standard also governs
in the Fourth Circuit, decisions in this circuit have applied the term “party in interest” interchangeably with “person aggrieved” to describe the standard, but it is clear that the standard applied is essentially the pre-1978 standard.
Thus, the question presented here is whether White meets the standard for standing to appeal.
Before addressing whether White meets the standard for standing to appeal, it is necessary to address a threshold question, namely which bankruptcy court orders are the subject of White’s appeal. White argues that he appeals three orders: (1) the July 22 order denying his motion to reconsider; (2) the July 1 order denying his motions to extend the July 3 deadline, delay the hearing, and authorize partial distribution;
and (3) the July 22 Allowance Order. The first two orders are interlocutory
and thus not appealable absent (i) leave of the bank
ruptcy court,
which did not occur here, or (ii) entry of a final, appealable judgment such that the “interlocutory orders merge into that judgment.”
Thus, the proper focus here is whether White has standing to appeal the July 22 Allowance Order. If so, then the two interlocutory orders, which merge into the final order, are properly considered on appeal. But if White lacks standing to appeal the July 22 Allowance Order, then the interlocutory orders are not appealable
and it would then be unnecessary to reach and decide Univision’s further contention that White lost his right to appeal the interlocutory extension orders as a consequence of failing to designate these orders in his Notice of Appeal.
The conclusion that White lacks standing to appeal the July 22 Allowance Order is compelled on two distinct, but related, grounds. First, White was clearly and unambiguously ordered by the bankruptcy court in its June 5 order to file an objection to Univision’s claim by July 3 or be “forever barred.” White failed to comply; he filed no objection by July 3 or ever. Therefore, his objection to Univision’s claim is forever barred. Because White failed to object, the bankruptcy court, when it allowed Univision’s claim, was not aware of any objection by White to the claim or of any evidence White might offer in support of an objection. Given this and given the clarity of the bankruptcy court’s June 5 order, White’s objection has been “forever barred,”
and
thus he is not a “person aggrieved” or “party in interest” with regard to the July 22 Allowance Order and does not meet the standard governing standing to appeal. A contrary conclusion would render bankruptcy court orders meaningless and imperil the integrity of the bankruptcy process.
White attempts to avoid this conclusion by arguing that his failure to object by the July 3 bar date must be excused (i) because he did not receive notice that the Chapter 7 trustee would not prosecute UBC’s objection at the July 22 hearing until July 18, four days before the hearing, and (ii) because he filed a motion to reconsider the bankruptcy court’s denial of his motion to extend the deadline to object on July 3. White’s failure to comply with the June 5 order is not excused on either ground. Although White was not formally notified of the trustee’s intention not to prosecute the objection until July 18, the bankruptcy court’s June 9 order makes clear that the trustee is not obligated to prosecute the objection. Moreover, White’s failure to object is not excused by his motion to reconsider. To conclude otherwise would permit any party to ignore a bankruptcy court’s order setting a deadline simply by filing a motion to reconsider.
White’s failure to attend and object at the properly-noticed July 22 hearing is a second ground for the conclusion that White lacks standing to appeal the order that resulted from the hearing. While this circuit has not resolved the question whether attendance and objection at the hearing are pre-requisites for standing to appeal the order, three other circuits — the Seventh, Ninth, and Tenth — have squarely addressed the issue and concluded that attendance and objection at the bankruptcy court proceedings are pre-requisites for standing to appeal an order from that proceeding.
Especially instructive is the Tenth Circuit’s decision in
In re Weston,
18 F.3d 860 (10th Cir.1994), which held that a group of creditors did not have standing to appeal the bankruptcy court’s order electing a Chapter 7 trustee because the creditors “did not file an objection or response to the motion to resolve the disputed election” and “did not appear at the hearing set to resolve the debtor’s objections.”
In re Weston,
18 F.3d at 864. The Seventh Circuit reached the same result in
In the matter of Schultz Manufacturing Fabricating Co.,
956 F.2d 686 (7th Cir.1992). There, the court held that a credi
tor and shareholder of the debtor did not have standing to appeal two orders of the bankruptcy court regarding settlement of a mechanic’s lien claim because the creditor and shareholder failed to appear and object at the bankruptcy court hearing.
See In the matter of Schultz Mfg. Fabricating Co.,
956 F.2d at 690-91. Similarly, the Ninth Circuit, in
In re Commercial Western Finance Corp.,
761 F.2d 1329 (9th Cir.1985), noted that a group of investors would have lacked standing to appeal an order of the bankruptcy court confirming a Chapter 11 reorganization plan because they failed to attend and object at the bankruptcy court hearing had they received proper notice of the consequences of the bankruptcy court’s order.
See In re Commercial Western Finance Corp.,
761 F.2d at 1335.
These three decisions plainly stand for the proposition that attendance and objection at a bankruptcy court hearing are prerequisites for standing to appeal the order that results from that hearing, provided the party seeking to appeal received proper notice of the hearing.
It is fair to note, however, that these decisions include no extensive discussion of the rationale for holding that attendance and objection are pre-requisites to appellate standing. Only the Seventh Circuit’s decision in
In the matter of Schultz Manufacturing Fabricating Co.,
956 F.2d 686, explicitly provides a rationale for these pre-requisites. According to the unanimous Seventh Circuit panel, the attendance and objection standing requirements are intended to ensure “judicial efficiency and certainty.”
See In re Schultz Mfg. Fabricating Co.,
956 F.2d at 690. This sound and important rationale received more complete expression in a sixty-year-old district court opinion,
In re Mifflinburg Body Co.,
54 F.Supp. 560 (M.D.Pa.1944), in which that court stated:
[I]t is [the party to litigation’s] duty to appear at the hearing and present to the court evidence and legal authorities which will be of aid to the court in making its decision. If he does not do so, the court must make its decision without the benefit of any evidence which such person might have made available.... [This] would cause unlimited confusion and even disrespect of the courts and their authority.
See id.
at 561. Thus, it seems likely that when ultimately presented to the Fourth Circuit (perhaps in this case) that it too, consistent with the Seventh, Ninth, and Tenth Circuits, will conclude that attendance and objection at the bankruptcy court hearing are pre-requisites to appellate standing. These standing pre-requisites ensure that the bankruptcy court is made aware of all available evidence and objections when making its determination whether to allow a claim and prevent a party in interest from “lying in the weeds” during bankruptcy court proceedings regarding a claim, only to appeal and generate additional unnecessary proceedings upon remand.
White attempts to avoid the conclusion that he lacks standing to appeal by arguing that his failure to object to the claim and appear at the hearing should be assessed as a waiver, rather than a standing, issue. And, in this respect, White contends that his failure to object and
appear does not constitute waiver because it was not a “voluntar[y] or intentional[ ] relinquish[ment] of a known claim right,” as controlling caselaw requires.
Yet, it is unnecessary to determine whether White waived his right to object to July 22 Allowance Order because White lacks standing to appeal on the grounds discussed above. Even assuming
arguendo
that WTiite had standing to appeal, however, White’s failure to object despite specific direction by the bankruptcy court to do so is a “voluntary and intentional” relinquishment of his objection and hence a waiver. As a consequence, White is barred from attacking Univision’s claim and the Allowance Order.
See In re Varat Enterprises, Inc.,
81 F.3d at 1317 (holding that waiver estops the party in interest from subsequently contesting the claim);
In re AMF Bowling Worldwide, Inc.,
278 B.R. at 101 (same).
In sum, White lacks standing to appeal the order of the bankruptcy court allowing Univision’s claim (i) because he failed to file an objection to the claim despite the bankruptcy court’s order to do so by July 3 “or be forever barred” and (ii) because he failed to appear and object at the July 22 bankruptcy court hearing regarding Univision’s claim. Accordingly, Univision’s motion to dismiss White’s appeal on the grounds that White lacked standing must be granted and White’s appeal must be dismissed.
An appropriate order will issue.