Fisher Island Ltd. v. Fisher Island Investments, Inc.
- Citation:
- Fisher Island Ltd. v. Fisher Island Invs., Case No. 12-13045 (11th Cir. May 1, 2013) (unpublished).
- Tag(s):
-
- Ruling:
- Affirming the district court, the Eleventh Circuit Court of Appeals held the district court properly dismissed an appeal from the bankruptcy court for lack of standing.
- Procedural context:
- The district court affirmed the bankruptcy court’s order requiring six creditors who filed involuntary bankruptcy petitions (the “Petitioning Creditors”) to post a $100,000.00 bond in accordance with Section 303(e) of the Bankruptcy Code. Fisher Island Limited, a non-debtor third party, sought an extension of time to appeal the district court’s order affirming the bankruptcy court’s order on the bond requirement and filed an untimely notice of appeal. The district court denied Fisher Island Limited’s motion for extension and dismissed the appeal based on a lack of standing. Fisher Island Limited then appealed the decision to the Eleventh Circuit.
- Facts:
- The Petitioning Creditors contested the assignment of a promissory note (the “Note”) to which several of the alleged debtors were party. Fisher Island limited was not one of the alleged debtors in the underlying bankruptcy litigation, but was a partial owner of one of the alleged debtors and among the eleven signatories of the Note. The Note contained an indemnification provision obligating the makers of the note to indemnify the holders “against any claims of any third party in connection with this Note or its validity, enforceability or collection.”
The bankruptcy court entered an order requiring the Petitioning Creditors to post a $100,000.00 bond in accordance with Section 303(e) of the Bankruptcy Code (the “Bond Order”). The Petitioning Creditors appealed, but the district court affirmed the Bond Order. Fisher Island Limited subsequently sought an extension of time to appeal the district court’s order affirming the Bond Order and filed an untimely notice of appeal challenging the district court’s affirmance of the Bond Order. Fisher Island Limited claimed it did not receive the district court’s order until 33 days after its entry. The district court denied Fisher Island Limited’s motion for extension and dismissed the appeal based on a lack of standing. Fisher Island Limited then appealed the decision to the Eleventh Circuit. At the time of Fisher Island Limited’s appeal to the Eleventh Circuit, the Petitioning Creditors had not expressed an intention to collect attorney’s fees from Fisher Island Limited on account of the indemnification provision in the Note as a result of the Bond Order.
The Eleventh Circuit concluded that the district court properly dismissed the appeal for lack of standing pursuant to 28 U.S.C. § 158 and Federal Rule of Bankruptcy Procedure 8001(a) because Fisher Island Limited did not satisfy the person aggrieved doctrine. In noting that the person aggrieved doctrine requires a higher causal nexus between act and injury, the Eleventh Circuit determined that Fisher Island Limited was not an aggrieved person because it was not “directly and adversely affected pecuniarily” by the Bond Order, nor was its property or rights altered by the Bond Order.
The Eleventh Circuit also found Fisher Island Limited had failed to established excusable neglect or good cause to justify the untimely filing of its notice of appeal, reiterating that an attorney’s miscalculation or inattention to filing deadlines do not typically constitute excusable neglect.
- Judge(s):
- Marcus, Hill, and Siler, Circuit Judges
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