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449 B.R. 31
S.D.N.Y.
2011
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Background

  • Travelers sought to appeal a Bankruptcy Court order compelling payment of settled proceeds totaling $102,167,212.31.
  • Common Law Settlement Counsel sought to certify two appeals to the Second Circuit under 28 U.S.C. § 158(d)(2)(A)(i)-(iii).
  • One appeal concerns the payment order; the other concerns a contempt order for Travelers' failure to pay while appealing.
  • The motion argued the appeals involve a matter of public importance and would advance the case, warranting direct appeal.
  • Judge Koeltl denied certification for both appeals, holding none met § 158(d)(2) requirements.
  • Final judgment had been issued by the Bankruptcy Court; expedited review through direct appeal was not justified.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether the payment-order appeal qualifies for immediate appeal Common Law Settlement Counsel: meets 'public importance' and 'advance progress'. Travelers: not a matter of public importance; no expedited progress. Denied certification for the payment-order appeal.
Whether the contempt-order appeal qualifies for immediate appeal Common Law Settlement Counsel: argues immediacy due to contempt issue. Travelers: not argued to meet § 158(d)(2) criteria. Denied certification for the contempt-order appeal.
Whether either appeal should be certified under § 158(d)(2) for public-interest purposes or to advance the case Common Law Settlement Counsel asserts public importance and advancement. Travelers contends none meet the statutory criteria. Certification denied; neither appeal satisfies § 158(d)(2).

Key Cases Cited

  • In re Gen. Motors Corp., 409 B.R. 24 (Bankr.S.D.N.Y. 2009) (private-contract questions not a 'matter of public importance' for certification)
  • Weber v. U.S. Trustee, 484 F.3d 154 (2d Cir. 2007) (speed not intended to trump comprehensive appellate review)
  • In re Johns-Manville Corp., 440 B.R. 604 (Bankr.S.D.N.Y. 2010) (illustrates limits of expedited appeals in bankruptcy context)
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Case Details

Case Name: In Re Johns-Manville Corp.
Court Name: District Court, S.D. New York
Date Published: Apr 15, 2011
Citations: 449 B.R. 31; 2011 WL 1465673; 11 Civ. 1312 (JGK), 11 Civ. 1329 (JGK)
Docket Number: 11 Civ. 1312 (JGK), 11 Civ. 1329 (JGK)
Court Abbreviation: S.D.N.Y.
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