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Taylor v. Winnecour (In Re Taylor)
450 B.R. 577
Bankr. W.D. Pa.
2011
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Background

  • Debtor filed an emergency motion for stay pending appeal of the court's April 29, 2011 order denying dismissal of her Chapter 13 case.
  • A four-factor test governs stays pending appeal: likelihood of success on merits, irreparable injury, substantial harm to others, and public interest.
  • Court concluded Debtor has little likelihood of success on the merits due to egregious delays and pending fraudulent conveyance action that may return assets to pay creditors in full.
  • Debtor would not suffer irreparable injury from denial of a stay because litigation continues regardless of bankruptcy status.
  • A stay would substantially harm creditors and the estate, delaying ongoing discovery and adjudication of fraudulent conveyance and other actions.
  • Public interest weighs against a stay because it would perpetuate delays in creditor payment and clog the system.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Likelihood of success on appeal Taylor argues for dismissal on appeal as of right Winnecour contends no absolute right to dismiss; egregious conduct blocks dismissal Debtor unlikely to succeed on merits
irreparable injury if stay denied Taylor would suffer irreparable harm from delays Taylor would not suffer irreparable injury; actions proceed regardless No irreparable injury shown
Impact on other parties if stay granted Stay would not harm creditors; would aid administration Stay would substantially harm creditors and estate by delaying proceedings Stay would substantially harm other parties
Public interest in grant of stay Stay serves public interest by orderly resolution Public interest weighs against meritless appeals delaying payments Public interest does not favor a stay

Key Cases Cited

  • In re Adelphia Communications Corp., 361 B.R. 337 (S.D.N.Y. 2007) (four-factor stay standard and considerations for corporate reorganizations)
  • In re Roth American, Inc., 90 B.R. 94 (Bankr.M.D.Pa.1988) (bankruptcy stay principles and balancing factors)
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Case Details

Case Name: Taylor v. Winnecour (In Re Taylor)
Court Name: United States Bankruptcy Court, W.D. Pennsylvania
Date Published: Jun 20, 2011
Citation: 450 B.R. 577
Docket Number: 14-23884
Court Abbreviation: Bankr. W.D. Pa.