Mitchell v. Weinman, et al. (In re Mitchell)

Citation:
2014 WL 541877
Tag(s):
Ruling:
The Court of Appeals rejected debtors' objections that underlying settlement conceding involuntary bankruptcy was void under FRCP 60(b)(4) because requirements for involuntary bankruptcy under 11 USC 303(b)(1) were not jurisdictional. Corporate debtor's objections on this basis were specifically denied because pro se individual debtor lacked standing to assert claims on corporation's behalf.
Procedural context:
Individual debtor moved in her case and sought to intervene in the corporate case to contest the enforceability of the underlying settlement agreement. In both cases, individual debtor sought to reopen cases and then sought reconsideration of the adverse rulings. BAP upheld the bankruptcy court's rulings.
Facts:
Individual and the company she ran were both forced into bankruptcy involuntarily. Purported debtors entered into settlement agreement with petitioning creditors that if corporate debtor did not pay $75,000 by a date certain, corporate debtor would not object to relief being entered against it. Payment was not timely made, and corporate debtor was adjudicated bankrupt, and individual debtor's case was dismissed. The estate of the corporate debtor was subsequently fully administered.
Judge(s):
Lucero, Baldock, Brorby

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