William Edwin Lindsey V. Pinnacle National Bank, et al. (In re Lindsey)

Summarized by Dean Langdon , DelCotto Law Group PLLC
12 years 6 months ago

Citation:

File Name 13a0223p.06; Docket No. 12-6362

Tag(s):

Ruling:

The Sixth Circuit Court of Appeals dismissed the appeal for lack of jurisdiction, holding that the district court's affirmance of the bankruptcy court order declining to confirm a proposed Chapter 11 plan was not a final order under 11 U.S.C. Sec. 158(d)(1), and no party had sought certification under Section 158(d)(2). The Court joined the 2nd, 8th, 9th and 10th Circuits in holding that an order denying confirmation was not a final order under Section 158(d)(1), and rejected contrary decisions from the 3rd, 4th and 5th Circuits.

Procedural context:

The bankruptcy court refused to confirm the individual Chapter 11 debtor's plan as it did not comply with the absolute priority rule. The debtor appealed and the district court affirmed. The debtor appealed to the Sixth Circuit.

Facts:

Lindsey filed a Chapter 11 petition in April, 2010 and proposed a plan which did not comply with the absolute priority rule. Three impaired creditors objected and the Bankruptcy Court refused to confirm the plan, ruling that the absolute priority rule applied. The Court of Appeals sua sponte reviewed the issue of jurisdiction and found it lacking.

Judge(s):

Gibbons, Sutton and Kethledge; opinion by Sutton.

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