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486 B.R. 574
1st Cir. BAP
2013
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Background

  • In January 2012, Rivera filed a third Chapter 13 petition in Puerto Rico, after two prior dismissals for failure to pay child support.
  • ASUME filed a proof of claim for $46,155 as a domestic support obligation and opposed confirmation due to post-petition DSO payments.
  • The trustee required tardy tax returns, amended schedules, and post-petition payments; Rivera did not comply, leading to a motion to dismiss.
  • The bankruptcy court dismissed the case with an 18-month bar to refiling based on Rivera's conduct and lack of post-petition diligence; Rivera did not appeal.
  • Rivera sought Rule 60(b)(1) and (6) relief after the deadline; ASUME opposed, citing poor payment history and lack of good faith.
  • The court denied Rule 60(b) relief without a hearing; Rivera appealed the denial, while ASUME supported both orders.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether the appeal is jurisdictionally proper. Rivera; timeliness of appeal from dismissal. ASUME; jurisdiction to review only denial of Rule 60(b) relief. We lack jurisdiction to review the dismissal order.
Standard of review for Rule 60(b) motions. Rivera argues abuse of discretion in denial. ASUME contends applicable abuse standard; deference to bankruptcy court. Denial reviewed for abuse of discretion.
Whether Rivera showed excusable neglect under Rule 60(b)(1). Rivera asserts excusable neglect due to minor delays and misunderstanding. ASUME argues delays were not excusable and showed lack of good faith. No excusable neglect; no basis for relief.
Whether Rule 60(b)(6) relief was warranted. Rivera contends extraordinary circumstances exist. ASUME asserts no extraordinary circumstances and fault on Rivera. No extraordinary circumstances; relief denied.

Key Cases Cited

  • Graphic Commc’ns Int’l Union v. Quebecor Printing Providence, Inc., 270 F.3d 1 (1st Cir. 2001) (factors for excusable neglect include prejudice, delay, and good faith)
  • EnvisaNet Computer Servs., Inc. v. ECS Funding LLC, 288 B.R. 163 (D. Me. 2002) (delay reason and control of movant matter to excusable neglect)
  • Karak v. Bursaw Oil Corp., 288 F.3d 15 (1st Cir. 2002) (extraordinary nature of Rule 60(b) relief; sparing use)
  • In re Garcia Matos, 478 B.R. 506 (1st Cir. BAP 2012) (abuse of discretion standard in Rule 60(b) context)
  • In re Vazquez, 471 B.R. 752 (1st Cir. BAP 2012) (finality and timing considerations in appellate review)
  • Aguiar v. Interbay Funding, LLC (In re Aguiar), 311 B.R. 129 (1st Cir. AP 2004) (jurisdictional aspects of final orders and notices of appeal)
Read the full case

Case Details

Case Name: Rivera v. ASUME
Court Name: Bankruptcy Appellate Panel of the First Circuit
Date Published: Feb 19, 2013
Citations: 486 B.R. 574; BAP No. PR 12-036; Bankruptcy No. 12-00341-ESL
Docket Number: BAP No. PR 12-036; Bankruptcy No. 12-00341-ESL
Court Abbreviation: 1st Cir. BAP
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