Diamond v. Vickery (In Re Vickery)
658 F. App'x 398
| 10th Cir. | 2016Background
- In 2007 a jury awarded Diamond (as Chapter 7 trustee for IVDS Interactive) a $4.6 million judgment against Vickery for conspiracy to make fraudulent transfers.
- Vickery filed bankruptcy in 2010; Diamond filed an adversary complaint seeking a determination that the $4.6 million debt is nondischargeable under 11 U.S.C. § 523(a)(2)(A), § 523(a)(4), and § 523(a)(6).
- The bankruptcy court rejected Diamond’s claims under § 523(a)(2)(A) and § 523(a)(4) but held the debt nondischargeable under § 523(a)(6).
- Appeals proceeded partly to the district court and partly to the Bankruptcy Appellate Panel (BAP) because Diamond elected the district court for only some issues; the BAP found his election defective for the cross-appeal.
- The BAP affirmed the § 523(a)(4) ruling and remanded the § 523(a)(2)(A) issue to the bankruptcy court to determine whether the debt resulted from actual fraud.
- The district court affirmed the bankruptcy court’s § 523(a)(6) ruling; Vickery appealed that affirmance to the Tenth Circuit while the § 523(a)(2)(A) matter remained pending on remand.
Issues
| Issue | Plaintiff's Argument (Diamond) | Defendant's Argument (Vickery) | Held |
|---|---|---|---|
| Whether the district court’s order on § 523(a)(6) is a final, appealable order under 28 U.S.C. § 158(d)(1) | District court fully resolved the § 523(a)(6) claim; that constitutes a final decision for this discrete controversy | Appeal is premature because another adversary claim (§ 523(a)(2)(A)) remains pending on remand, so the district court’s order is not final | Appeal dismissed for lack of jurisdiction because the district court’s order did not resolve all matters in the adversary proceeding; finality will only arise after resolution of the remaining § 523(a)(2)(A) proceedings |
Key Cases Cited
- Niemi v. Lasshofer, 728 F.3d 1252 (10th Cir.) (appellate courts must sua sponte determine jurisdiction)
- W. Energy All. v. Salazar, 709 F.3d 1040 (10th Cir.) (jurisdictional questions must be resolved before reaching merits)
- In re Baines, 528 F.3d 806 (10th Cir.) (bankruptcy finality analyzed by discrete controversies within the case)
- In re Durability, Inc., 893 F.2d 264 (10th Cir.) (finality focuses on dispositional status of matters in the adversary complaint)
- In re Gentry, 807 F.3d 1222 (10th Cir.) (standard of appellate review for bankruptcy court decisions)