Blixseth v. Glasser (In re Yellowstone Mountain Club, LLC)

Summarized by Lars Fuller , BakerHostetler
11 years 1 month ago

Citation:

Blixseth v. Glasser (In re Yellowstone Mountain Club, LLC), No. 13-35113 (9th Cir. Feb. 11, 2015)

Tag(s):

Ruling:

In an unpublished decision, the 9th Circuit affirmed the U.S. District Court for the District of Montana, who had affirmed the U.S. Bankruptcy Court for the District of Montana, and ruled that the bankruptcy court acted well within its discretion in denying movant's motion for reconsideration of an order allowing a $22 million claim against the estate. The 9th Circuit ruled that FRBP 9024 (FRCP 60) provides limited grounds for reconsideration, that 11 USC 502(j) does not provide additional grounds, and movant failed to establish adequate grounds for reconsideration. Movant failed to establish grounds under Rule 60(b)(1)-(5). Movant also failed to satisfy Rule 60(b)(6)'s catchall provision by failing to show "extraordinary circumstances prevented [him] from taking timely action." The court rejected movant's argument that the delay was excusable because the bankruptcy court lacked jurisdiction to reconsider its order until movant's standing was separately adjudicated. The court specified that the bankruptcy court's jurisdiction to reconsider its own order was not impacted by movant's standing issue.

Procedural context:

The bankruptcy court entered an order allowing a $22 million claim against the estate. Over a year after the date of the order, movant filed a motion requesting the court reconsider the order. The bankruptcy court denied the motion, and movant appealed to the US District Court. The US District Court affirmed, and the movant appealed to the 9th Circuit.

Facts:

The bankruptcy court entered an order allowing a claim against the estate on April 19, 2010. Approximately four months later, movant obtained an order giving him standing to contest the claim. Over a year later, movant (otherwise unidentified as being either a creditor, trustee, or party in interest in debtor's bankruptcy case) filed a motion seeking reconsideration of the order. Movant asserted cause because his standing to contest the order was separately adjudicated.

Judge(s):

Kozinski, Paez, Berzon

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