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