First National Bank of Oneida, N.A. v. Brandt

Case Type:
Consumer
Case Status:
Reversed and Remanded
Citation:
17-11654 (11th Circuit, Apr 24,2018) Published
Tag(s):
Ruling:
District Court ruling vacated and remanded in light of changed circumstances. Specifically, remanded for district court to consider whether dismissal of an individual's confirmed chapter 11 bankruptcy has any effect on ability to pursue deficiency claim by a bank when the bank failed to comply with the terms of the confirmed plan for asserting a deficiency claim.
Procedural context:
On appeal from United States District Court for the Middle District of Florida.
Facts:
First National Bank of Oneida, N.A. ("Bank") brought action against Donald Brandt ("Debtor") to collect deficiency balances on amounts due an owing under both pre-petition and post-petition promissory notes. The Debtor moved to dismiss the Bank's claims on the basis that the Bank could not assert a claim for deficiency because it had not complied with the terms of the confirmed Chapter 11 Plan. The district court agreed and dismissed all of the Bank's deficiency claims that related to loans made before the Debtor filed for bankruptcy. The district court allowed the deficiency claims to go forward related to post-petition promissory notes executed by the Debtor. After the case was fully briefed, the Debtor sought and obtained dismissal of his bankruptcy case. The appellate court noted that dismissal of a confirmed individual bankruptcy case, without discharge, could have an effect on the Bank's ability to pursue its deficiency claims. Because the matter was already brief prior to the dismissal, the parties did not meaningfully brief the issue. Given the change in circumstance and with the understanding that dismissal is aimed to return the parties to their respective pre-bankruptcy positions, the appellate court remanded the matter to the district court to consider the issue and further develop the record.
Judge(s):
Pryor, Carnes, Antoon

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