Healthtrio, Inc. v. Centennial River Corp. (In re Healthtrio, Inc.)

Summarized by Scottie Kleypas , Scottie S. Kleypas Law, LLC
14 years 7 months ago

Citation:

Healthtrio, Inc. v. Centennial River Corp. (In re Healthtrio, Inc.) No. 10-1351 (10th Cir. Aug. 5, 2011)

Tag(s):

Ruling:

Affirmed. BAP did not have jurisdiction to review an "order for relief" entered by a bankruptcy judge serving in the District of Delaware where a Delaware bankruptcy judge entered an order for relief after the effective date of a transfer of venue 28 U.S.C. § 158(a) provides that an appeal of a decision by a bankruptcy judge "shall be taken only to the district court for the judicial district in which the bankruptcy judge is serving."

Procedural context:

HealthTrio timely filed notices of appeal from order for relief that was docketed in both the Delaware Bankruptcy Court and the Colorado Bankruptcy Court, Colorado Bankruptcy Court granted HealthTrio’s motion to stay the case pending appeal, HealthTrio asserted that the Tenth Circuit BAP had jurisdiction to hear the appeal and Creditors joined with HealthTrio requesting an expedited disposition and agreed that the relief HealthTrio sought – vacatur of the order for relief was proper. BAP dismissed the appeal concluding that it lacked jurisdiction to review an order of the Delaware Bankruptcy Court.

Facts:

An involuntary Chapter 7 case was commenced in the Delaware Bankruptcy Court. HealthTrio answered the petition and filed counterclaims. HealthTrio also moved to dismiss the petition and to transfer venue to the Colorado Bankruptcy Court pursuant to 28 U.S.C. §1412. Delaware Judge denied the motion to dismiss; however, no order for relief was entered. After subsequent hearings and continuances and discovery disputes, on November 12, 2009, the Delaware bankruptcy judge entered an order granting Healthtrio's motion to transfer venue to the Colorado Bankruptcy Court. On November 16, 2009, the case was transferred and docketed in the Colorado Bankruptcy Court. Creditors filed a motion in the Delaware Bankruptcy Court for clarification of the transfer order; in response the Delaware bankruptcy judge entered an "Order of Relief" on December 10, 2009. The Order was docketed on both the Delaware and Colorado Bankruptcy Court. Health Trio timely filed notices of appeal from that order in the District Court for the District of Delaware and in the District Court for the District of Colorado.

Judge(s):

Brorby, Senior Circuit Judge, Holmes and Anderson, Circuit Judges

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