Cert Petitions

Cert Grant on Finality of Orders Denying Bankruptcy-Stay Relief

The Supreme Court granted cert in Ritzen Group Inc. v. Jackson Masonry, LLC to decide whether a denial of bankruptcy-stay relief is final and appealable.

May 20, 2019

By Bryan Lammon

The Supreme Court granted cert this morning in Ritzen Group Inc. v. Jackson Masonry, LLC. The case asks whether an order denying relief from a bankruptcy stay is final and appealable.

When a debtor files for bankruptcy, most litigation against that debtor is automatically stayed. But those with claims against the debtor can petition for relief from that stay so they can pursue their claims.

In Ritzen Group, a creditor’s breach-of-contract claim against a debtor was automatically stayed when the debtor filed for bankruptcy. The creditor sought relief from the automatic stay, which the bankruptcy court denied. The creditor did not immediately appeal that decision. It instead pursued its breach-of-contract claim in the bankruptcy court and, after losing, sought to appeal both the denial of relief from the stay and the merits to the district court. The district court held that it lacked appellate jurisdiction over the denial of stay relief.

On further appeal to the Sixth Circuit, the court held that the denial of relief from the stay was a final order entered in a bankruptcy proceeding under 28 U.S.C. § 158(a), the jurisdictional statute for bankruptcy appeals. The denial was thus final and appealable at the time it was entered. At that point, the creditor could—indeed, had to—appeal the denial of relief. Because it did not do so within the 14-day period for filing a notice of appeal in bankruptcy, its later appeal was untimely. The Sixth Circuit accordingly affirmed the district court’s dismissal the appeal.

The Supreme Court granted cert to decide whether a bankruptcy court order denying relief from an automatic stay is final and thus appealable under § 158(a).

I’m sure I’ll be writing more about this case in the future. For now, here are some helpful links for anyone who want to read up on the case:

 

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