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