Wortley v. Bakst
A Stern-infected decision can’t be appealed directly to a court of appeals, the Eleventh Circuit says.
- Rochelle Quick Take
View Rochelle Summary- Case Type:
- Business
- Case Status:
- Reversed and Remanded
- Citation:
- 15-11923 (11th Circuit, Jan 05,2017) Published
- Tag(s):
- Ruling:
11th Circuit didn't have appellate jurisdiction to review a direct, certified appeal of a Bankruptcy Court's order dismissing a complaint because the complaint involved a related to, but non-core matter and, thus, the Bankruptcy Court couldn't enter a final order and, absent party consent, was limtited to proposing dismissal to the District Court. And because the proposed dismissal had no adjudicative consequence, the 11th Circuit coudln't hear it. Therefore, it transferred the proposed dismissal to the District Court for review and a final order.
- Procedural context:
Trafford Distributing Center, through its principal, Wortley, filed a Chapter 11 in the S.D. Florida. The Bankruptcy Court appointed a Chapter 11 Trustee. The Trustee hired attorney Bakst to pursue 3 adversaries for the estate against Wortley and related parties. During the adversaries, Bakst's firm hired Bankruptcy Judge Olson's fiance, Fender, to work in its bankruptcy department. Ultimately, the Worley parties lost badly when Judge Olson ruled that they owed the bankrupcy Estate $2.5 million. They then sued Bakst and Fender in state court on the allegation that the hiring of Fender by Bakst was an effort to improperly influence Judge Olson. Bakst and Fedner removed the state law complaint to the Bankruptcy Court, with Judge Cristol having taken over the bankruptcy case for Judge Olson, who had recused himself following a District Court status conference. Judge Cristol dismissed the removed complaint on 4 grounds and certified his decision for direct appeal to the Eleventh Circuit, which then entered its ruling, supra, on jurisdiction. The decision provides a very useful, easy to follow primer on bankruptcy and appellate jurisdiction.
- Facts:
See procedural context, above.
- Judge(s):
- Marcus, Jordan, and 2nd Circuit Judge Walker (by designation).