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Atkinson v. Ernie Haire Ford, Inc. (In Re Ernie Haire Ford, Inc.)
764 F.3d 1321
11th Cir.
2014
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Background

  • Debtor, a Florida Ford dealer, filed Chapter 11 in 2008; Second Plan confirmed in 2009 authorized a liquidating agent and defined a Litigation Bar Date for pre-Effective Date claims.
  • Second Plan allowed enjoining actions barred by the Plan at the request of a defendant, and required unpending litigation to be brought or deemed waived.
  • Atkinson, a former creditor and employee, was named in 16 adversary proceedings for fraud and misappropriation after the Litigation Bar Date.
  • Debtor sought to modify the Second Plan to extend the Litigation Bar Date to permit the adversary proceedings against Atkinson to proceed.
  • Bankruptcy court found a modification could occur as the Second Plan was not substantially consummated; Third Plan later amended the Bar Date and was confirmed in 2012.
  • On appeal, district court affirmed; Atkinson appeals arguing he is a person aggrieved because the modification affected his right to an injunction under the Plan.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether Atkinson is a person aggrieved to appeal Atkinson possessed a direct right under the Plan to seek injunctions against post-Bar-Date claims. Atkinson’s interest is adversary-defendant avoiding liability, not protected by Bankruptcy Code. No; Atkinson not aggrieved because interest not protected by Code.
Whether a party not protected by the Bankruptcy Code can appeal Atkinson’s unique Plan-based rights distinguish him from ordinary adversary defendants. Even Plan-based rights outside the Code do not confer aggrievement. Not aggrieved; interests not within Bankruptcy Code do not support appeal.
Whether the 'person aggrieved' standard applies post-1978 The standard should reflect continued ability to appeal for direct rights affected by the order. Post-1978 reforms did not alter the need for aggrievement. Standard applies; only direct, pecuniarily affected interests within the Code qualify.

Key Cases Cited

  • In re Westwood Cmty. Two Ass’n, 293 F.3d 1332 (11th Cir. 2002) (defines aggrieved as directly, adversely, pecuniarily affected)
  • Travelers Ins. Co v. H.K. Porter Co., 45 F.3d 737 (3d Cir. 1995) (agnostic to standing; focus on aggrievement)
  • Depoister v. Mary M. Holloway Found., 36 F.3d 582 (7th Cir. 1994) (principle of aggrievement in bankruptcy appeals)
  • Holmes v. Silver Wings Aviation, Inc., 881 F.2d 939 (10th Cir. 1989) (standing limitations in bankruptcy appeals)
  • Kane v. Johns-Manville Corp., 843 F.2d 636 (2d Cir. 1988) (reasoning on procedural standing in bankruptcy)
  • In re El San Juan Hotel, 809 F.2d 151 (1st Cir. 1987) (aggrievement requires direct impact on rights)
  • Fondiller v. Robertson (In re Fondiller), 707 F.2d 441 (9th Cir. 1983) (standing limitations in bankruptcy context)
  • In re LTV Steel Co., 560 F.3d 449 (6th Cir. 2009) (adversary defenses against liability do not satisfy aggrievement)
  • In re Colony Hill Assocs., 111 F.3d 273 (2d Cir. 1997) (aggrievement limited to interests protected by Code)
  • In re Harwald Co., 497 F.2d 443 (7th Cir. 1974) (aggrievement requires interest protected or regulated by Code)
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Case Details

Case Name: Atkinson v. Ernie Haire Ford, Inc. (In Re Ernie Haire Ford, Inc.)
Court Name: Court of Appeals for the Eleventh Circuit
Date Published: Sep 4, 2014
Citation: 764 F.3d 1321
Docket Number: 13-11810
Court Abbreviation: 11th Cir.