Staker v. Jubber (In re Staker)
- Citation:
- Staker v. Jubber (In re Staker), Bankr. No. 11-35404, Adv. No. 12-02032 (10th Cir. B.A.P. Mar. 19, 2013) [Not for Publication]
- Tag(s):
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- Ruling:
- Dismissing the appeals of the Bankruptcy Court’s orders remanding two quiet title actions to state court, the Tenth Circuit B.A.P. held the appeals were moot and the Debtors lacked the requisite standing to appeal the Bankruptcy Court’s orders. The B.A.P. reasoned that the appeals were moot because the Debtors failed to seek a stay pending appeal, an absence of which allowed the state court to dismiss the actions with prejudice prior to the appeal. Accordingly, the B.A.P. could not grant effectual relief to the Debtors by reversing the remand orders, even if the merits of the case so warranted. Moreover, the B.A.P. explained that the Debtors lacked standing to appeal the remand orders because after they filed Chapter 7 relief, all claims and interests that accrued as a result of the default judgments entered prepetition in state court became property of the estate. Thus, absent abandonment, the Trustee is the real party in interest with exclusive standing to assert, enforce or settle the claims.
- Procedural context:
- The Bankruptcy Court entered orders remanding both adversary proceedings to state court while noting that pursuant to the settlement agreement, the state court may vacate the default judgments and dismiss the actions. The Debtors timely appealed the remand orders but did not file any motion to stay those orders pending appeal. Upon remand, the state court vacated the default judgments and dismissed the cases with prejudice
- Facts:
- In 2005 and 2006, the Debtors filed two quiet title actions in state court that resulted in the entry of default judgments. Later, in 2011, the Debtors filed their Chapter 7 bankruptcy petition. The Chapter 7 Trustee removed the two quiet title actions from state court to the bankruptcy court as adversary proceedings and then entered into a settlement agreement respecting the adversary proceedings with the defendants. The Bankruptcy Court then entered an order approving the settlement agreement over the Debtors’ objection. Subsequently, the Trustee and the defendants filed joint stipulated motions to remand the adversary proceedings back to state court so the default judgments could be vacated and the cases dismissed per the terms of the settlement agreement.
- Judge(s):
- Cornish, Michael and Jacobvitz, Bankruptcy Judges
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