Hancock v. McDermott

Citation:
___ F3d. ___ (6th Cir. 20110; Case No. 09-6203 (May 18, 2011).
Tag(s):
Ruling:
The Sixth Circuit affirmed the District Court's summary affirmance of the Bankruptcy Court's order pursuant to Disctrict Court's local rule which provides that the failure of the appellant to comply with either Bankruptcy Rules 8006, 8007 or 8009 will result in summary affirmance of the opinon of the Bankruptcy Judge. The SIxth Circuit held that the appellant's repeated and blantant disregard for the rules and procedure for appeal from bankruptcy court to district court warranted the district court's action, and that summary affirmance without consideration of the merits was appropriate because of the clear record of delay and contumacious conduct of the appellant.
Procedural context:
Debtor filed a Chapter 11bankrupcty proceeding that was then converted to a Chapter 7. Debtor's counsel submitted a fee application that was denied in full by the Bankruptcy Court. Debtor's counsel timely appeals to the district court. District Court summarily affirms the bankruptcy court's order pursuant to local rule (M.D.Tenn. R. 81.01) for failure to follow appellate rules and procedure. Sixth Circuit affirms the District Court's summary affirmance.
Facts:
Chapter 11 Debtor files his final fee application after the case has converted to a Chapter 7. The US Trustee and the Chapter 7 Trustee object to the fee application. After a week long trial, the bnkruptcy court denies all of Debtor's counsel fee for failure to disclose, abusive conduct in the case, excessive and incomplete billing and general disruptive behavior. Upon timely appealing to district court, appellant (Debtor's counsel) then proceeded to file extension after extension citing delays and missing deadlines which resulted in the district court issuing a show cause order why the appeal should not be dismissed for failure to prosecute as no brief had yet been filed over six months after the appeal had been taken. Appellant did not respond to the show cause but instead filed a brief that exceeded 100 pages, disregarding the 50 page limit for which special permission had been granted. Appellees moved to have the appeal dismissed or to require appellant to comply with the breifing limits. District Court entered an order for appellant to file a brief under 50 pages and to file another motion for extension explaining why his brief was not timely filed. Appellant then filed two documents (i) a brief arguably 50 pages in length almost entirely single spaced and in small font which was in clear violation of the local filing requirements and (ii) an explanation for the delay that personal reasons existed that could only be discussed in chambers and that the district would not have the "extraordinary courage" required to find the bankruptcy court violated his constitutional rights so there was no point investing more hours into the district court because any ruling would be appealed and the Sixth Circuit reviews only the findings of the bankruptcy judge. The district court then entered an order pursuant to local rule summarily affirming the opinion of the bankruptcy court for appellant's failure to comply with Rules 8006, 8007 and 8009 of the Bankruptcy Rules. Sixth Circuit found that the district court's order was proper and agreed that summary affirmance without consideration of the merits was appropriate. Further that appellants cannot leapfrog the district court in bankruptcy appeals by blantantly ignoring the rules and procedures for appeals and that permitting parties to skip the intermediate appeal would undermine the bankruptcy appellate process.

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