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John Muenchen, Jr. v. Stephen Been
A17A1419
| Ga. Ct. App. | Nov 27, 2017
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Background

  • Wallace Run Investments, LLC sued John and Patricia Muenchen for indemnification and attorney fees; the Muenchens filed a third‑party contribution claim against Stephen Been.
  • On May 23, 2016 the trial court granted partial summary judgment to Wallace Run, denied the Muenchens’ cross‑motion, but did not certify the order as final under OCGA § 9‑11‑54(b).
  • The trial court later entered an Amended Order and Final Judgment directing entry of final judgment under OCGA § 9‑11‑54(b) for Wallace Run against the Muenchens for $374,217.17 plus prejudgment interest, and denied Been’s motion for partial summary judgment on the contribution claim.
  • The Muenchens appealed from the final judgment and the May 23, 2016 order; after docketing they filed a Notice of Bankruptcy and Suggestion of Automatic Stay (Chapter 7) in the Northern District of Georgia.
  • The Court of Appeals observed it cannot itself stay cases because of constitutional term requirements, but noted the federal automatic stay under 11 U.S.C. § 362(a) may apply to continuation of an action against a debtor or to recover a pre‑petition claim during an appeal.
  • The Court remanded the appeal to the trial court until the bankruptcy stay is lifted and instructed the Muenchens to re‑file a new notice of appeal in the trial court within 30 days after the bankruptcy court lifts the stay.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether the automatic bankruptcy stay applies to continuation of this appeal Wallace Run: appeal should proceed; state appellate timetable controls Muenchens: bankruptcy filing invokes automatic stay that halts continuation against debtors The stay likely applies; appeal remanded to trial court until bankruptcy stay is lifted
Whether the Court of Appeals can stay the appeal pending bankruptcy Wallace Run: appellate court must dispose of cases each term; cannot stay Muenchens: stay is required by federal bankruptcy law Court cannot itself stay for term reasons but recognizes federal automatic stay governs and remands accordingly
Whether the May 23, 2016 order should have been final under OCGA § 9‑11‑54(b) Wallace Run: entry of final judgment appropriate Muenchens: challenged finality and sought cross‑relief Trial court later amended to direct final judgment; that judgment is subject to the bankruptcy stay
Procedure to resume appeal after bankruptcy stay lifted Wallace Run: normal appellate continuation Muenchens: will notify court upon lift Court orders Muenchens to file a new notice of appeal in trial court within 30 days after the stay is lifted

Key Cases Cited

  • Boardman v. Brenninkmeijer, 328 Ga. App. 882 (Ga. Ct. App. 2014) (discussing effect of debtor’s bankruptcy filing and applicability of automatic stay to appellate proceedings)
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Case Details

Case Name: John Muenchen, Jr. v. Stephen Been
Court Name: Court of Appeals of Georgia
Date Published: Nov 27, 2017
Docket Number: A17A1419
Court Abbreviation: Ga. Ct. App.