Novoa v. Minjarez (In the Matter of Novoa)
- Summarized by Steven Holmes , Cavazos Hendricks Poirot, P.C.
- 7 years 7 months ago
- Case Type:
- Consumer
- Case Status:
- Affirmed
- Citation:
- No. 16-50955 (5th Circuit, Jun 05,2017) Not Published
- Tag(s):
-
- Ruling:
- The Fifth Circuit affirmed the bankruptcy court's denial of his motion to reopen his Chapter 7 bankruptcy so that he could file a Rule 60(b)(4) motion to vacate a previously uncontested lift stay order, based upon his contention that the lift stay order was void.. The Fifth Circuit found that the lift stay order was not void, and therefore, the bankruptcy court did not abuse its discretion in refusing to reopen the Chapter 7 case.
- Procedural context:
- District Court affirmed the bankruptcy court's refusal to reopen the Debtor's Chapter 7 case.
- Facts:
- The Chapter 7 Debtor was a defendant in pre-petition medical malpractice litigation. The plaintiffs moved to lift the stay to litigate claims against applicable insurance. The Debtor failed to contest the lift stay motion, and the bankruptcy court entered an order lifting the stay to permit settlement of the pre-petition claims between the plaintiffs and the insurance carrier. The Chapter 7 case was closed shortly thereafter. One year after the lift stay order, the Debtor filed a motion to reopen the bankruptcy case in order to vacate the lift stay order as void. The Debtor argued that his failure to contest the lift stay order was due to a clerical omission by his [prior[ counsel, and that permitting the plaintiffs to settle with the insurance providers without his consent was prejudicial to him because it could affect his medical license. Notably, the District Court dismissed the Debtor's appeal on the lift stay order based upon standing. The Debtor failed to appeal the District Court's ruling on the lift stay order to the Fifth Circuit.
- Judge(s):
- REAVLEY, HAYNES, and COSTA (per curiam)
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