American Asset Finance LLC v. Feldman
685 F. App'x 122
| 3rd Cir. | 2017Background
- Lawrence and Robyn Feldman filed Chapter 7 in Feb 2013; they listed a $407,433.76 debt to American Asset Finance, LLC (AAF) based on a 2012 New Jersey judgment against Lawrence Feldman.
- AAF filed an adversary complaint in bankruptcy court objecting to dischargeability under 11 U.S.C. § 523; after an initial dismissal without prejudice, AAF filed an amended adversary complaint and moved for summary judgment.
- The Bankruptcy Court granted summary judgment for AAF in July 2014, concluding collateral estoppel from the New Jersey judgment made the debt nondischargeable under § 523.
- Feldman appealed to the District Court, which in July 2015 vacated the Bankruptcy Court’s summary judgment, held collateral estoppel did not apply, and remanded for further proceedings to determine whether the debt was "willful and malicious" under § 523(a)(6).
- AAF appealed the District Court’s remand order to the Third Circuit. The Third Circuit examined whether the District Court’s order was final and thus appealable under 28 U.S.C. § 158(d).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the District Court’s order vacating bankruptcy summary judgment and remanding is a final, appealable order under 28 U.S.C. § 158(d) | AAF: District Court’s order is final and appealable because it reverses summary judgment for AAF | Feldman: Remand requires further factfinding; order is not final because it does not end the adversary proceeding | The Third Circuit held the District Court’s remand order was not final or appealable and dismissed the appeal for lack of jurisdiction |
Key Cases Cited
- In re Truong, 513 F.3d 91 (3d Cir.) (discusses finality in bankruptcy appeals and treatment of adversary proceedings)
- Buncher Co. v. Official Comm. of Unsecured Creditors of GenFarm Ltd. P’Ship IV, 229 F.3d 245 (3d Cir. 2000) (explains relaxed finality concepts in bankruptcy)
- In re Natale, 295 F.3d 375 (3d Cir.) (addresses antipathy to piecemeal appeals in adversary actions)
- Bethel v. McAllister Bros., Inc., 81 F.3d 376 (3d Cir.) (defines finality as ending litigation on the merits)
- United States v. Nicolet, Inc., 857 F.2d 202 (3d Cir.) (orders requiring further factual development are not final)