LL Painting Co., Inc. v. Odyessy Contracting Corp

Case Type:
Business
Case Status:
Affirmed
Citation:
UNITED STATES COURT OF APPEALS Case Nos. 19-1150 & 19-1151 (3rd Circuit, Dec 12,2019) Published
Tag(s):
Ruling:
The debtor waived its right to appeal the Bankruptcy Court's decision by entering into a stipulation that was silent as to appeals and provided that if the Bankruptcy Court determined that debtor was the breaching party, then “all of the [p]arties’ pending claims [would] be withdrawn and disposed of in their entirety with prejudice” and the adversary proceeding “[would] be deemed to be finally concluded in all respects.” In addition, several aspects of the language in the stipulation indicate an intent to waive that right to appeal.
Procedural context:
Appeal to the United States Court of Appeals for the Third Circuit from the United States District Court for the Western District of Pennsylvania, which had affirmed a decision of the United States Bankruptcy Court for the Western District of Pennsylvania.
Facts:
Appellant Odyssey Contracting Corp. and Appellee L&L Painting Co., Inc. were, respectively, a subcontractor and the prime contractor on a project to repaint the Queensboro Bridge. Over the course of that project, Odyssey and L&L became embroiled in a dispute over whether L&L was underpaying Odyssey. Consequently, Odyssey stopped its work, and the parties sued each other for breach of contract. After Odyssey filed for bankruptcy, this litigation became the subject of an adversary proceeding in the Bankruptcy Court. At the final pre-trial conference, the parties entered into a stipulation approved by the Bankruptcy Court. The stipulation provided that if the Bankruptcy Court determined that Odyssey was the breaching party, then “all of the [p]arties’ pending claims will be withdrawn and disposed of in their entirety with prejudice” and the adversary proceeding “shall be deemed to be finally concluded in all respects.” The stipulation was silent as to the right to appeal. The Bankruptcy Court ultimately ruled that Odyssey was the breaching party, but Odyssey, notwithstanding the stipulation, appealed. The issue before the United States Court of Appeals for the Third Circuit was whether the stipulation entered into by the parties and approved by the Bankruptcy Court barred Odyssey's right to appeal.
Judge(s):
Ambro, Circuit Judge

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