Tze Wung Consultants, Ltd v. Bank of Baroda (In re Indu Craft, Inc)
- Summarized by Jordan Wishnew , Shearman & Sterling LLP
- 8 years 11 months ago
- In bankruptcy matters, the 30-day time limit incorporated through Federal Rule of Appellate Procedure 6(b)(1) is a non-jurisdictional claim-processing rule under which an untimely appeal can proceed to the merits of the other party does not object. Precedent of the U.S. Supreme Court has made clear that classifying a statutory limitation as jurisdictional requires a clear statement from Congress; thus, because Rule 6(b)(1) is non-statutory (unlike FRAP 4(a)(1) that is codified by statute, see 28 U.S.C. section 2107(a)), the court could not conclude that Congress clearly intended the courts to treat the application of FRAP 6(a)(1) as jurisdictional.
- Procedural context:
- In 1999, debtor's reorganization plan was confirmed by the bankruptcy court, and in the plan, the debtor (Indu Craft, Inc.) consented to the entry of a $21 million judgment against it. The debtor unsuccessfully pursued a fourth party action against the Bank of Baroda (the "Bank") to indemnify it in the amount of the judgment.
In March 2007, appellants moved the bankruptcy court for an order eliminating or temporarily suspending the bankruptcy plan's discharge of the judgment in an effort to renew the pursuit of the debtor's fourth-party indemnification claim against the Bank. The bankruptcy court denied the motions. Appellant Trendi Sportswear moved for reconsideration pursuant to FRBP 9023. In 2011, the debtor's sole shareholder, Tze Wung Consultants, filed a motion under FRBP 9024. Both motions were denied in July 2011. Appellants timely appealed the 2007 and 2011 orders.
The U.S. District Court affirmed the orders of the bankruptcy court on July 27, 2012, and entered judgment on July 31, 2012. Both Trendi Sportswear and Indu Craft appealed the district court's order to the U.S. Court of Appeals for the Second Circuit on August 30, 2012. In addition, Tze Wung Consultants filed a motion for reconsideration in the district court pursuant to FRCP 59(e) on August 23, 2012, which was then denied on August 27, 2012. Tze Wung then filed its appeal on September 20, 2012, which was 51 days after the district court's ruling affirming the bankruptcy court judgment.
Appellee (i.e., the Bank) filed a motion to consolidate the appeals. The Second Circuit specifically asked Tze Wung and the Bank to brief whether the Second Circuit had jurisdiction over Tze Wung's appeal given its untimeliness.
- Please see procedural context.
- Hall, Livingston and Droney
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