In re Ponton

Citation:
In re Pontell, No. 11-3028 (3d Cir. Sept. 29, 2011) (NOT PRECEDENTIAL)
Tag(s):
Ruling:
Third Circuit dismissed Chapter 13 debtors' appeal of order lifting the automatic stay as moot when Bankruptcy Court had already dismissed the bankruptcy case and decision of dismissal went unappealed.
Procedural context:
The Bankruptcy Court entered an order lifting the automatic stay allowing the relevant secured creditor to foreclose against Debtors' home. Debtors filed a timely appeal. Shortly thereafter, the Bankruptcy Court dimissed the bankruptcy case pursuant to 11 U.S.C. § 1326 for Debtors' failure to make payments. Debtors did not appeal dismissal of the case. The District Court dismissed Debtors' appeal for failure to comply with Fed. R. Bankr. Proc. 8006. Debtors appealed the District Court's decision.
Facts:
Donnell and Pertanial Ponton ("Debtors") filed a petition under Chapter 13 in November 2009 in order to stay a foreclosure proceeding against their home by Vericrest Financial, Inc. ("Vericrest"). Vericrest moved for an order lifting the automatic stay. Subsequently, the trustee filed a motion to dismiss for failure to make payments under 11 U.S.C. § 1326. On May 31, 2011, the Bankruptcy Court entered an order lifting the automatic stay. Debtors timely filed an appeal of that order. Then, on June 23, 2011, the Bankruptcy Court dismissed the case. Debtors did not appeal dismissal. The District Court promptly disposed of the appeal, dismissing the case on July 22, 2011 for failure to comply with Bankruptcy Rule 8006. Debtors appealed the District Court's decision. The Third Circuit held that Debtors' appeal was moot because the Bankruptcy Court had since dismissed the case. No bankruptcy proceeding was left in which to ground a stay.
Judge(s):
Sloviter, Jordan and Greenaway, Jr.

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