Bais Din v. Congregation Birchos Yosef
699 F. App'x 91
| 2d Cir. | 2017Background
- Congregation Birchos Yosef (debtor) filed bankruptcy; the automatic stay under 11 U.S.C. § 362(a) went into effect.
- Certain defendants in adversary proceedings continued or initiated proceedings before the Bais Din (a rabbinical court) after the stay began.
- The bankruptcy court found those defendants violated the automatic stay, held them in contempt, and declared Bais Din decrees issued in furtherance of those prohibited proceedings void ab initio.
- The Bais Din, not a party to the adversary proceeding, appealed the bankruptcy court’s order to the district court, arguing Free Exercise Clause and RFRA violations.
- The district court dismissed the Bais Din’s appeal for lack of standing; the Bais Din appealed that dismissal to the Second Circuit.
- The Second Circuit affirmed, holding the Bais Din failed to show the pecuniary (Article III) injury required to have appellate standing in bankruptcy appeals.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Bais Din has appellate standing to challenge bankruptcy court order | Bais Din claimed its religious exercise was burdened (Free Exercise, RFRA) by the stay preventing it from issuing notices/decrees | District court/defendant argued Bais Din lacked Article III standing because it suffered no pecuniary injury and did not qualify as a person aggrieved | Held: No standing — Bais Din failed to show pecuniary harm; non-pecuniary claim does not satisfy bankruptcy appellate standing and alternative relief exists (civil suit) |
| Whether alternative theories of standing may be considered on appeal | Bais Din raised other standing theories on appeal | Appellee argued those theories were forfeited for not being raised below | Held: Forfeited — appellate court declined to consider new standing theories raised for first time on appeal |
Key Cases Cited
- Liranzo v. United States, 690 F.3d 78 (2d Cir. 2012) (standard of review for dismissal for lack of subject-matter jurisdiction: factual findings for clear error, legal conclusions de novo)
- Lujan v. Defenders of Wildlife, 504 U.S. 555 (U.S. 1992) (plaintiff bears burden to establish Article III standing)
- DISH Network Corp. v. DBSD N. Am., Inc. (In re DBSD N. Am., Inc.), 634 F.3d 79 (2d Cir. 2011) (adopted the ‘‘person aggrieved’’/piecuniary-harm rule for bankruptcy appellate standing)
- Int’l Trade Admin. v. Rensselaer Polytechnic Inst., 936 F.2d 744 (2d Cir. 1991) (formulation of ‘‘person aggrieved’’ standard in bankruptcy appeals)
- Kane v. Johns-Manville Corp., 843 F.2d 636 (2d Cir. 1988) (explaining need to limit appellate standing to avoid endless appeals in bankruptcy)
- Bogle-Assegai v. Connecticut, 470 F.3d 498 (2d Cir. 2006) (issues not raised below are forfeited on appeal)
