622 B.R. 102
Bankr. S.D. Ala.2020Background
- Debtor O’Neal Session filed Chapter 13 on November 23, 2018; her sole scheduled asset was a 2015 Honda Civic subject to Honda Finance's security interest.
- Honda repossessed and sold the Civic post-petition; Session sued in Adversary No. 18-65 for violation of the automatic stay and obtained partial summary judgment on liability; damages trial was scheduled.
- Session moved to withdraw the reference and sought appellate review; she requested stays that paused the adversary proceedings.
- The Chapter 13 Trustee moved to dismiss (no assets/claims after Honda reduced its claim to zero); the bankruptcy was dismissed pre-confirmation on November 15, 2019.
- The District Court denied Session’s motion to withdraw the reference; the Eleventh Circuit dismissed her appeal for lack of jurisdiction.
- Session moved to stay the dismissal/order under Fed. R. Bankr. P. 8007; the bankruptcy court denied the stay on November 25, 2020 and ordered the adversary matters to proceed (damages hearing to be set and other motions scheduled).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether to stay the bankruptcy dismissal and related adversary proceedings pending appeal | Session sought a stay under Rule 8007 to obtain direct appellate review and to pause proceedings | Opposing parties argued no basis for stay: no pending/non-fruitful appeal and dismissal appropriate | Denied — no pending appeal or viable appeal path; stay is unwarranted |
| Likelihood of success on appeal (threshold factor) | Session contended dismissal was improper and she would succeed on appeal | Courts/counsel pointed to District Court and Eleventh Circuit rulings denying withdrawal/certification and dismissing appeal for lack of jurisdiction | Denied — Session failed to show a probable likelihood of success on the merits |
| Irreparable harm absent a stay | Session implied prejudice from dismissal and delay of relief | Opponents noted the only remedy is monetary damages for repossession/disposition; no ongoing collection or property jeopardy | Denied — no irreparable harm established; harm is compensable in money |
| Public interest and prejudice to others from a stay | Session argued for delay to preserve appellate rights | Opponents emphasized docket efficiency, wasted resources, and that a Chapter 13 with no debts/assets serves no reorganization purpose | Denied — public interest favors prompt resolution; stay would unduly delay proceedings |
Key Cases Cited
- Nken v. Holder, 556 U.S. 418 (2009) (stay pending appeal is not of right; issuance is discretionary and extraordinary)
- Landis v. N. Am. Co., 299 U.S. 248 (1936) (stay of proceedings rests in court's discretion)
- Sampson v. Murray, 415 U.S. 61 (1974) (irreparable injury standard for preliminary relief and stays)
- Touchston v. McDermott, 234 F.3d 1130 (11th Cir. 2000) (factors for stays and preliminary relief)
- Garcia–Mir v. Meese, 781 F.2d 1450 (11th Cir. 1986) (likelihood of success on the merits as a prerequisite for a stay)
- City Nat’l Bank of Miami v. Gen. Coffee Corp., 758 F.2d 1406 (11th Cir. 1985) (orders of bankruptcy courts are generally not directly appealable to the circuit)
- In re Revel AC, Inc., 802 F.3d 558 (3d Cir. 2015) (application of stay factors in bankruptcy appeals)
