Dorula v. Flanders (In re Starlight Group, LLC), 515 B.R. 290

Flanders moved for reconsideration of a disallowance order on her proof of claim.
Objections to her claim were sustained by an order entered July 17, 2013.
Flanders filed the Rule 3008 reconsideration motion on Oct. 21, 2013, asserting documentary evidence not previously available undermines the prior findings.
The motion attaches seven documents related to two 2010 real estate closings handled by a title company.
Rule 3008 requires cause to reconsider and then consideration of the equities; the court found no valid cause.
Even if reconsidered, the claim would be disallowed due to fraud and concealed transfers surrounding a short sale, benefitting the bank and fraudulently omitting related disclosures.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether there is cause to reconsider under Rule 3008	Flanders claims new documents show no fraud; cause exists.	Court finds no timely or proper cause under 9023/9024; delay and diligence defects.	No; insufficient cause for reconsideration.
Whether Rule 9023/9024 allow reconsideration after the appeal period	Rule 3008 exception should apply; timely discovery.	No exception applies; filing was late and diligence lacking.	Not permitted; Rule 9023/9024 apply constraints.
Whether the claim would be disallowed on merits if reconsidered	Documents negate the fraud theory; claim should be allowed.	Evidence confirms fraud and perjury; transfers concealed.	Would still be disallowed; fraud established.
Whether the motion could be timely filed within 14 days of the order	Documents available within 14 days after order; timely if considered.	No explanation for delay; time-barred.	Untimely; fails Rule 3008 timing requirement.
Whether the underlying fraud supports denial of the claim regardless of reconsideration	Bank profits from short sale do not negate fraud against bank.	Short sale as instrument of fraud; disclosures omitted.	Fraud established; claim accordingly disallowed.

In re Wylie, United States Bankr. App. Panel, 349 B.R. 204 (9th Cir. BAP 2006) (Rule 3008 interplay with 9023/9024; finality considerations)
In re Aguilar, 861 F.2d 873, 861 F.2d 873 (5th Cir. 1988) (Relation of Rule 3008 to FRCP 59/60; timing of reconsideration)
In re Levoy, 182 B.R. 827, 182 B.R. 827 (9th Cir. BAP 1995) (Rule 9023/9024 incorporation; standards for cause)
In re Colley, 814 F.2d 1008, 814 F.2d 1008 (5th Cir.1987) (Rule 3008 cause standard; reconsideration scope)
Osterneck v. Ernst & Whinney, 489 U.S. 169, 489 U.S. 169 (1989) (Reconsideration and finality principles in underlying judgments)