Camil Kreit v. Christopher Quinn
690 F. App'x 283
| 5th Cir. | 2017Background
- Dr. Kreit, a member and manager of Cleveland Imaging & Surgical Hospital, was involved in a Texas receivership where a receiver managed the Hospital and its assets.
- The receiver filed for Chapter 11 on the Hospital’s behalf, triggering 11 U.S.C. § 362 automatic stay.
- The bankruptcy court approved the Hospital’s asset sale to Acquisition on August 21, 2015; the sale order became final on September 8, 2015.
- In November 2015, Kreit sent letters alleging misconduct by Hospital members and bidding irregularities, including to a U.S. Deputy AG, U.S. Attorney’s Office, FTC personnel, and a Texas official.
- The Hospital sought contempt in bankruptcy court; the court held Kreit’s letters violated § 362(a)(1), (3) and impermissibly collateral attacked prior orders, and imposed damages.
- On June 2, 2016, the bankruptcy court imposed stipulated damages; Kreit agreed to pay by August 2, 2016, and faced additional penalties if he did not.
- Kreit appealed the sanctions to the district court; the district court denied his motions to extend the filing deadline and to file out of time, and the court dismissed the appeal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether this court has jurisdiction to review the sanctions order. | Kreit challenges jurisdiction based on Rooker-Feldman ab initio exception. | Quinn argues Rooker-Feldman bars review of state court judgments. | Jurisdiction is present; the Texas court had authority, and the issue is resolved on merits. |
| Whether the district court abused its discretion in denying extension and out-of-time filing. | Kreit contends the delay was justified and the court should permit filing. | Quinn argues dismissal for failure to timely file is appropriate. | District court did not abuse its discretion; timely filing was not shown. |
Key Cases Cited
- In re Braniff Airways, Inc., 774 F.2d 1303 (5th Cir. 1985) (bankruptcy appeals dismissed for failure to prosecute when brief not timely filed)
- Aguiluz v. Bayhi (In re Bayhi), 528 F.3d 393 (5th Cir. 2008) (Rooker-Feldman doctrine and abstention principles in bankruptcy appeals)
- Keeler v. Acad. of Am. Franciscan History, Inc. (In re Keeler), 273 B.R. 416 (D. Md. 2002) (ab initio void exception to Rooker-Feldman considered)
- Lake v. Capps (In re Lake), 202 B.R. 751 (B.A.P. 9th Cir. 1996) (void ab initio and jurisdictional limits considerations in bankruptcy appeals)
- James v. Draper (In re James), 940 F.2d 46 (3d Cir. 1991) (recognition of ab initio exception by some circuits)
- Ferren v. Searcy Winnelson Co. (In re Ferren), 203 F.3d 559 (8th Cir. 2000) (rejecting void ab initio approach in certain contexts)
- Casale v. Tillman, 558 F.3d 1258 (11th Cir. 2009) (considerations on jurisdiction and bankruptcy enforcement)
