SS Farms, LLC v. Sharp (In Re SK Foods, L.P.)
676 F.3d 798
| 9th Cir. | 2012Background
- Appellants deposited documents on SK Foods premises; trustee took possession during Chapter 11 proceedings.
- DOJ raid and criminal investigations followed, with extensive document seizures and copies.
- Debtor filed Chapter 11; Bradley Sharp appointed trustee and retained possession of documents.
- Appellants sought return of originals, removal of trustee, and disqualification of counsel; trustee sought authority to continue possession and review.
- Bankruptcy court denied Appellants' motions and granted trustee's counter-motion; district court affirmed.
- Appellants appeal to the Ninth Circuit to challenge the orders as final and appealable under 28 U.S.C. § 158(d)(1); court dismisses for lack of jurisdiction.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Are the bankruptcy orders final appellate orders? | Salyer argued the orders are final and appealable because they affect rights and resolve issues. | Shrp contends the orders are interlocutory and not final since the trustee remains in office and actions can be revisited. | Orders are interlocutory; not final; dismissed for lack of jurisdiction. |
| Is the denial of removal and related records order final? | Salyer asserts removal denial and records control terminate rights and warrant appellate review. | Shrp notes status quo remains; denial preserves options and is not a final determination. | Not final; does not resolve rights or definitively determine the issue. |
| Is the denial of disqualification of counsel a final order? | Salyer argues counsel issues affect substantive rights and warrant appeal. | Shrp argues counsel appointments/disqualifications are inherently interlocutory in bankruptcy. | Interlocutory; not a final order. |
Key Cases Cited
- AFI Holding, Inc. v. Dr. Pepper/Seven Up, Inc., 530 F.3d 832 (9th Cir. 2008) (finality hinges on whether the order resolves rights and conclusively determines the issue)
- In re Westwood Shake & Shingle, Inc., 971 F.2d 387 (9th Cir. 1992) (interlocutory nature of bankruptcy orders often survives appeal only on finality)
- Matter of Schultz Mfg. Fabricating Co., 956 F.2d 686 (7th Cir. 1992) (assumption of finality of denial of removal; not dispositive here)
- In re Lewis, 113 F.3d 1040 (9th Cir. 1997) (traditional finality concerns avoid two trips through appellate process)
- AFI Holding, Inc. (reiteration), 530 F.3d 832 (9th Cir. 2008) (reiterates standard for finality in bankruptcy appeals)