Knaub v. Rollison (In re Rollison)

Citation:
Knaub v. Rollison, No. 13-1503 (10th Cir. May 9, 2014)
Tag(s):
Ruling:
Tenth Circuit ruled that it lacked jurisdiction to review appeal of BAP's reversal and remand order. Tenth Circuit ruled that because BAP remanded to bankruptcy court to take evidence and rule on unconsidered damages issue, reversal and remand order was not final and thus, not appealable. Under 28 USC 158(d)(1), Tenth Circuit's jurisdiction was limited to "final" decisions or orders of the BAP. BAP's remand to bankruptcy court to take evidence and adjudicate undecided issue constituted "significant further proceedings," and thus, BAP's reversal and remand of bankruptcy court was neither final, nor reviewable by Tenth Circuit.
Procedural context:
Following judgment entered by bankruptcy court in dischargeability suit, defendant appealed adverse verdict to BAP. BAP reversed and remanded to bankruptcy court to take evidence and adjudicate undecided issue. Plaintiffs appealed to Tenth Circuit.
Facts:
Plaintiffs sued debtor-defendant to except debt from discharge pursuant to 523(a)(2). Plaintiffs asserted defendant constructed defective home, and then promised to build them new home as replacement, but failed to do so. Bankruptcy court entered judgment in favor of plaintiffs, and awarded $162,000 in damages under a "benefit of the bargain" theory, based on the difference between the value of the defective home constructed and the price paid by plaintiffs. Defendant objected that the proper measure of damages was plaintiffs' "out of pocket" damages related to Defendant's unperformed promise to build them a new house. The BAP agreed that "out of pocket" was the proper measure of damages, reversed, and remanded for the bankruptcy court to take evidence and determine the "out of pocket" damages.
Judge(s):
Holmes, Anderson, and Baldock

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