Boardman v. Brenninkmeijer
328 Ga. App. 882
| Ga. Ct. App. | 2014Background
- Brenninkmeijer sued Boardman for breach of a co-tenancy agreement; the trial court granted summary judgment for Brenninkmeijer.
- Boardman filed a Notice of Bankruptcy Stay claiming the bankruptcy stay under 11 U.S.C. § 362 stayed the appeal.
- Georgia appellate court held it lacks power to stay a case and remanded to the trial court to lift the stay.
- Boardman may reinstate the appeal by filing a new Notice of Appeal within 30 days after the bankruptcy stay is lifted.
- The court overruled Accredited Assoc. Inc. v. Shottenfeld and McDuffie v. Hoobler to the extent they held §362 stays do not apply to appeals.
- The court concluded the automatic stay applies to ongoing proceedings against the debtor and to appeals, and remanded the case.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does 11 U.S.C. § 362 automatic stay apply to the ongoing appeal? | Brenninkmeijer contends stay may not bar the appeal. | Boardman argues the stay may bar continuation of the action and appeal. | Yes, the automatic stay applies; stay governs continuation of actions against the debtor, including appeals. |
| May the Georgia court proceed to merits of the appeal during the pendency of bankruptcy? | Accredited/McDuffie-type reasoning should permit merits despite bankruptcy. | Automatic stay prohibits proceeding until lifted. | The court overrules the prior non-applicability and holds the stay can impede the appeal; remand is required. |
| Should Accredited Assoc. and McDuffie be treated as controlling? | They should permit proceeding despite bankruptcy when debtor is appealing. | Stay should bar proceedings regardless of party status. | Overruled; these holdings are contrary to § 362 and the court must apply the stay to appeals as appropriate. |
Key Cases Cited
- Boat Ramp Road Partners v. First State Bank, Inc., 314 Ga. App. 452 (2012) (court-ordered remand due to bankruptcy stay considerations)
- Olde Towne Tyrone v. Multibank 2009-1 CRE Venture, 326 Ga. App. 322 (2014) (removal of limited stay exemptions in some contexts)
- Accredited Assoc. Inc. v. Shottenfeld, 162 Ga. App. 575 (1982) (auto. stay not previously applied to some appeals; overruled)
- McDuffie v. Hoobler, 203 Ga. App. 325 (1992) (previously treated stay applicability to appeals)
- Crosby v. Monroe County, 394 F.3d 1328 (11th Cir. 2004) (automatic stay does not extend to lawsuits initiated by the debtor)
- Martin-Trigona v. Champion Fed. S & L, 892 F.2d 575 (7th Cir. 1989) (early articulation of bankruptcy stay scope)
- Gruntz v. County of Los Angeles, 202 F.3d 1074 (9th Cir. 2009) (bankruptcy stay enforcement and jurisdiction considerations)
- Jinks v. Eastman Enterprises, 317 Ga. App. 489 (2012) (state court limits during pendency of related actions)
- O’Dell v. Mahoney, 324 Ga. App. 360 (2013) (bankruptcy stay influence on state court proceedings)