An order resolving everything in an adversary proceeding aside from an award of attorneys’ fees is a final order giving rise to an appeal as of right, according to the Eleventh Circuit.
The bankruptcy court authorized a creditor to sue a third party for a fraudulent transfer on behalf of the estate. Despite an objection from the creditor-plaintiff, the bankruptcy court approved a settlement of all claims against the third party, thus resolving all claims in the adversary proceeding aside from an award of attorneys’ fees for “litigation misbehavior.”
The creditor-plaintiff appealed approval of the settlement, but the district judge dismissed the appeal, saying the order was not final under 18 U.S.C. Section 158(a)(1).
In an unpublished per curiam opinion on Oct. 20, the Eleventh Circuit reversed and remanded the case for the district court to consider the merits of the appeal.
Citing its own authority from 2011, the appeals court said that “attorneys’ fees [are] always collateral to the merits.” Accordingly, the circuit said, “fee issues do not affect finality.”