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Lunan v. Jones
523 F. App'x 339
6th Cir.
2013
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Background

  • 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)
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Case Details

Case Name: Lunan v. Jones
Court Name: Court of Appeals for the Sixth Circuit
Date Published: Apr 18, 2013
Citation: 523 F. App'x 339
Docket Number: 12-6009
Court Abbreviation: 6th Cir.