420 F. App'x 194
3d Cir.2011Background
- Fleurantin obtained a discharge under Chapter 7 in 2000; in 2006 he filed a Chapter 13 petition to delay foreclosure on his Brooklyn commercial property.
- Creditors asserting debt exceeded Chapter 13 eligibility moved to dismiss under 11 U.S.C. § 109(e); Fleurantin conceded ineligibility but sought conversion to Chapter 11.
- Bankruptcy Court converted the case to Chapter 7 on February 20, 2007 and appointed a Chapter 7 trustee; Fleurantin did not appeal the conversion order.
- Trustee administered the estate, recovering about $380,000 through asset liquidation, including Fleurantin’s property; Fleurantin interfered with administration and filed motions.
- Fleurantin moved to unconditionally dismiss; trustee cross-moved to dismiss with conditions; Bankruptcy Court dismissed with prejudice on December 1, 2008 and approved $252,433.57 in fees on December 29, 2008.
- Fleurantin appealed the December 1 and 29 orders; district court denied a motion to vacate the February 20, 2007 order, which this court affirms.
- Fleurantin asserts ineffective assistance of counsel; the court notes such claims do not provide relief from civil orders.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the February 20, 2007 conversion order was reviewable on appeal. | Fleurantin contends the conversion order should be reviewable. | The district court lacked jurisdiction due to untimely appeal under Rule 8002. | District court lacked jurisdiction to review the conversion order. |
| Whether the district court properly reviewed the November-December 2008 dismissal and fee orders. | Fleurantin challenges the conditional dismissal and fee awards. | Trustee's structured dismissal with conditions was permissible; fees awarded were within court discretion. | Bankruptcy Court did not abuse discretion; dismissal with conditions and fee awards affirmed. |
| Whether Fleurantin is entitled relief due to ineffective assistance of counsel. | Ineffective assistance warrants relief from orders. | Ineffective assistance claims do not provide relief from civil orders. | No relief based on ineffective assistance of counsel; claims rejected. |
Key Cases Cited
- In re Rosson, 545 F.3d 764 (9th Cir. 2008) (bankruptcy order converting to Chapter 7 is final and appealable)
- In re Christian, 804 F.2d 46 (3d Cir. 1986) (immediate appealability of denial of dismissal of Chapter 7 petition under practical finality)
- Shareholders v. Sound Radio, Inc., 109 F.3d 873 (3d Cir. 1997) (timeliness governs appellate review of orders)
- In re Myers, 491 F.3d 120 (3d Cir. 2007) (standard of review for bankruptcy decisions and fee awards)
- In re Engel, 124 F.3d 567 (3d Cir. 1997) (review of fee awards in bankruptcy)
- In re Kaiser Aluminum Corp., 456 F.3d 328 (3d Cir. 2006) (bankruptcy courts’ broad authority to prevent injustice)
