In Re Delaney
110 F.4th 565
2d Cir.2024Background
- Andrew Delaney, a lawyer acting pro se, filed for Chapter 7 bankruptcy in the Eastern District of New York.
- Delaney listed modest assets ($1,110) and larger liabilities ($44,434); a trustee was appointed.
- Delaney filed five motions to voluntarily dismiss his own bankruptcy petition, ultimately seeking dismissal on the grounds of ineligibility and improper venue.
- The bankruptcy court denied the final (fifth) motion, finding dismissal would not be in the best interests of the creditors, as the trustee made progress (notably a modest settlement), and had already addressed Delaney’s eligibility and venue arguments.
- Delaney appealed to the district court, which dismissed for lack of appellate jurisdiction, concluding the bankruptcy court’s order was nonfinal.
- Delaney then appealed to the Second Circuit, which reviewed whether it had jurisdiction to consider the district court’s dismissal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Is denial of a debtor’s motion to dismiss a bankruptcy petition a final, appealable order? | Denial is final and thus appealable as of right | Denial is nonfinal; only allows case to proceed | Denial is nonfinal and not appealable |
| Should the district court have granted leave for interlocutory appeal? | Leave to appeal should have been granted | No basis for interlocutory appeal | Leave properly denied |
| Does Second Circuit have jurisdiction over district court’s dismissal of the appeal? | Court has jurisdiction as order was final | No jurisdiction as order left proceedings ongoing | No jurisdiction under §158(d) |
Key Cases Cited
- In re Murray, 900 F.3d 53 (2d Cir. 2018) (discussing standard for voluntary dismissals in bankruptcy and "interest of all parties" test)
- In re Penn Traffic Co., 466 F.3d 75 (2d Cir. 2006) (expounding bankruptcy finality doctrine)
- Catlin v. United States, 324 U.S. 229 (1945) (denial of motion to dismiss is generally not a final, appealable order)
- Conn. Nat'l Bank v. Germain, 503 U.S. 249 (1992) (explaining appellate jurisdiction in bankruptcy proceedings)
- In re AroChem Corp., 176 F.3d 610 (2d Cir. 1999) (district court’s denial of leave to appeal interlocutory bankruptcy order is not appealable)