Craig Piazza v. Nueterra Healthcare Physical Therapy, LLC
469 B.R. 388
S.D. Fla.2012Background
- Piazza filed a voluntary Chapter 7 petition on October 8, 2010, with Schedules A-J and Official Form 22A; amended I and J filed in December 2010.
- Nueterra moved to dismiss in January 2011; a March 1, 2011 hearing addressed §707(b) and alternative §707(a) for cause.
- Bankruptcy court granted Nueterra's motion to dismiss on June 17, 2011; Piazza moved to reconsider, denied September 29, 2011.
- Piazza appealed to the district court under 28 U.S.C. § 158(a)(1) and Fed. R. Bankr. P. 8001.
- Eleventh Circuit district court adopted that bad faith can constitute ‘cause’ under §707(a) and evaluated bad faith under totality of the circumstances.
- Court affirmed the bankruptcy court’s final judgment, concluding the petition was filed in bad faith and the dismissal was proper.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does bad faith constitute 'cause' under §707(a)? | Piazza argues bad faith is not 'cause' under §707(a). | Nueterra argues bad faith can be 'cause' for dismissal under §707(a). | Yes; bad faith can be 'cause' under §707(a). |
| Whether the bankruptcy court erred in finding bad faith to dismiss the petition under §707(a)? | Record does not support bad faith finding. | Record supports a bad-faith conclusion under the totality of circumstances. | No error; the record supports bad-faith findings. |
Key Cases Cited
- In re Baird, 456 B.R. 112 (Bankr.M.D.Fla.2010) (bad faith can be 'cause' for dismissal under §707(a))
- In re Kane & Kane, 406 B.R. 163 (Bankr.S.D.Fla.2009) (bad faith constitutes 'cause' under §707(a))
- In re Boca Village Assn., Inc., 422 B.R. 318 (Bankr.S.D.Fla.2009) (bad faith as 'cause' under §707(a))
- In re McDaniel, 363 B.R. 239 (M.D.Fla.2007) (totality-of-circumstances approach to bad faith)
- In re Tagliavia, 378 B.R. 660 (Bankr.M.D.Fla.2006) (totality of circumstances in bad-faith determination)
- In re Adell, 332 B.R. 844 (Bankr.M.D.Fla.2005) (totality-based bad-faith inquiry)
- In re Johnson, 318 B.R. 907 (Bankr.N.D.Ga.2005) (bad faith as ground for dismissal)
- In re Smith, 229 B.R. 895 (Bankr.S.D.Ga.1997) (supporting bad-faith dismissal framework)
- In re Tanguay, 206 B.R. 575 (Bankr.M.D.Fla.1997) (early articulation of bad-faith doctrine)
- In re Davidoff, 185 B.R. 631 (Bankr.S.D.Fla.1995) (historic consideration of bad-faith filing)