Lunan v. Jones
523 F. App'x 339
6th Cir.2013Background
- Lunan, a pro se debtor, appeals a district court order dismissing her appeal of a bankruptcy court sale-authorization order.
- The bankruptcy court converted Lunan’s case from Chapter 11 to Chapter 7 after she failed to comply with a court order.
- The Trustee moved to authorize sale of real property at 3520 Orebank Road, Kingsport, Tennessee; Lunan did not object or respond by deadlines.
- The bankruptcy court approved the sale; Lunan did not challenge the sale by timely appeal.
- The district court dismissed for lack of standing, holding Lunan was not a “person aggrieved” who could appeal the order.
- This court reviews standing de novo when the facts are undisputed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Lunan had standing to appeal the sale-authorization order. | Lunan argues she is aggrieved and can appeal. | Trustee and district court say she lacks pecuniary interest and thus no standing. | Lunan lacked standing; district court affirmed. |
Key Cases Cited
- Stamper v. United States (In re Gardner), 360 F.3d 551 (6th Cir. 2004) (clearly erroneous facts, de novo law review on bankruptcy appeals)
- Moran v. LTV Steel Co. (In re LTV Steel Co.), 560 F.3d 449 (6th Cir. 2009) (standing reviewed de novo when facts are undisputed)
- Harker v. Troutman (In re Troutman Enters., Inc.), 286 F.3d 359 (6th Cir. 2002) (prudential standing; debtors rarely have pecuniary interest)
- Fid. Bank, Nat’l Ass’n v. M.M. Grp., Inc., 77 F.3d 880 (6th Cir. 1996) (standing requires a direct, adverse pecuniary effect)
- Cult Awareness Network, Inc. v. Martino (In re Cult Awareness Network, Inc.), 151 F.3d 605 (7th Cir. 1998) (debtors rarely have surplus; standing depends on potential surplus)
- Kowal v. Malkemus (In re Thompson), 965 F.2d 1136 (1st Cir. 1992) (surplus possibility must be reasonable)
- Simon v. Amir (In re Amir), 436 B.R. 1 (B.A.P. 6th Cir. 2010) (standing where surplus is a reasonable possibility)
