2012 U.S. Dist. LEXIS 63965
E.D.N.Y.2012Background
- Debtor Chana Taub seeks an emergency stay pending appeals of two March 2012 bankruptcy orders.
- Monsey Order approved a settlement resolving Wells Fargo’s secured claim on jointly owned Monsey property.
- Brooklyn Order approved the sale and notice procedures for the estate’s Brooklyn real property.
- The orders followed extensive prior appeals and litigation in Taub’s combined bankruptcy/divorce proceedings.
- Taub did not seek relief from the Bankruptcy Court before approaching the district court; timing and bypass raise jurisdictional issues.
- The district court ultimately denies the stay request.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Jurisdiction and procedure | Taub seeks district-court review bypassing bankruptcy court. | Bankruptcy Rule 8005 requires initial review by the bankruptcy court. | Court lacks jurisdiction to review without first seeking relief in bankruptcy court. |
| Standard for a stay pending appeal | Taub contends stay warranted under Rule 8005 standards. | Standard balancing factors apply; Taub must show irreparable harm and likelihood of success. | Even if review proper, Taub fails on irreparable harm and likelihood of success. |
| Irreparable harm | Loss of rental income and potential sale harms Taub irreparably. | Harm is compensable by monetary damages; estate proceeds may benefit Taub’s creditors as well. | No irreparable harm shown; monetary relief available. |
| Likelihood of success on appeal | Appeal may reverse/modify orders favorable to Taub. | Bankruptcy Court’s findings are supported; no clear error shown. | No substantial possibility of success on appeal. |
| Supersedeas bond if stay granted | Bond should be manageable or waived. | Ordinary security required; bond likely at least $1,000,000. | If stayed, bond required; Taub cannot post; stay denied on bond grounds. |
Key Cases Cited
- In re Adelphia Commc'ns Corp., 361 B.R. 337 (S.D.N.Y. 2007) (balancing factors; irreparable harm considerations in stay analysis)
- In re Momentum Mfg. Corp., 25 F.3d 1132 (2d Cir. 1994) (de novo review standard; appellate review of findinigs of fact)
- In re Country Squire Assocs. of Carle Place, L.P., 203 B.R. 182 (2d Cir. BAP 1996) (stay partial relief where bankruptcy court held hearings with evidence)
- In re 347 Linden, 2011 WL 2413526 (E.D.N.Y. 2011) (requirements for staying bankruptcy orders; jurisdictional considerations)
- In re Slater, 934 F.2d 30 (2d Cir. 1991) (irreparable harm standard and remedies in stay considerations)