TW Telecom Holdings Inc. v. Carolina Internet Ltd.

Citation:
11-1068 (D.C. No. 1:10-01799-ZLW-MJW)
Tag(s):
Ruling:
The automatic stay applies to all appeals of civil cases that were originally brought against the debtor, including appeals in which the debtor is the appellant. The Tenth Circuit Court of Appeals overruled its precedent that the automatic stay did not apply to an appeal of a case against the debtor, so long as the debtor was the appellant.
Procedural context:
The Tenth Circuit considered whether a debtor's prepetition appeal of a civil case was stayed by a debtor's subsequent chapter 11 bankruptcy proceeding.
Facts:
TW Telecom Holdings Inc. obtained a prepetition default judgment of more than $3 million against Carolina Internet Ltd. (Carolina) for a civil claim. Carolina appealed the default judgment, but filed a chapter 11 bankruptcy while the appeal was pending. The Tenth Circuit was previously the only circuit that held the automatic stay did not apply to an appeal of civil case against the debtor if the debtor was the appellant.
Judge(s):
Kelly, Gorsuch and Matheson

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