Auto-Owners Insurance v. Rossi (In re Rossi)

Summarized by J. Debbeler , Bricker Graydon LLP
15 years 2 weeks ago

Citation:

2011 FED App. 0001P

Tag(s):

6th Circuit

Ruling:

The BAP held that it lacked jurisdiction to hear the appeal of the bankruptcy court's order granting debtors' motion to remand for lack of subject matter jurisdiction, regardless of whether the bankruptcy court was correct in determining that it lacked subject matter jurisdiction.

Procedural context:

appeal from bankruptcy court order granting the debtors' motion to remand

Facts:

Debtors home and personal property were destroyed in a fire post-petition. The trustee advised the insurance company to make direct payment to the mortgagee for the loss and, becaue the value of the personal property identified by the debtors on their bankruptcy schedules was within the exemption limits, to negotiate a settlement directly with the debtors on the personal property. The trustee filed a report of no distribution, the debtors received their discharge, and the bankruptcy case closed. The insurance company paid the debtors the amount listed on their schedules for their personal property - $2,200. The debtors were dissatisfied with the payout and valued the damaged personal property at $45,924.88. The debtors sued the insurance company in state court. The insurance company filed a notice of removal to the bankruptcy court. The debtors filed a motion to remand to state court, which was granted by the bankruptcy court.

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