Bankruptcy courts may not use Bankruptcy Rule 7054(a) to certify an interlocutory appeal, according to a nonprecedential opinion from the Eleventh Circuit.
Pro se, a chapter 7 debtor sued his mortgage lender in an adversary proceeding aimed at halting foreclosure. The debtor sought a jury trial.
The bankruptcy court denied the request for a jury trial. Later the bankruptcy court denied the debtor’s motion for a preliminary injunction.
The bankruptcy court certified the denial of a jury trial as a final order for appeal under Federal Rule 54(b), made applicable in the adversary proceedings by Bankruptcy Rule 7054(a). The district court affirmed, and the debtor appealed to the Eleventh Circuit.
While the appeal was pending in the circuit, the bankruptcy court dismissed the debtor’s complaint in full.
In the circuit, the lender contended that the appeals court lacked jurisdiction. The Eleventh Circuit agreed in an opinion on February 18 and dismissed the appeal because denial of a jury trial was an interlocutory order, and Rule 54(b) does not permit interlocutory appeals.
The result turned on the language of Rule 54(b). It provides:
When an action presents more than one claim for relief . . . , the court may direct entry of a final judgment as to one or more, but fewer than all, claims or parties only if the court expressly determines that there is no just reason for delay.
The certification of an appeal by the lower court under Rule 54(b) is not binding on the appellate court. If “the district court incorrectly granted Rule 54(b) certification, we will dismiss the appeal for lack of jurisdiction,” the Eleventh Circuit said, citing circuit authority.
The appeals court noted that its jurisdiction is limited to review of final orders and judgments under 28 U.S.C. § 158(d)(1). Orders denying jury demands “are interlocutory, as they do not dispose entirely of the underlying claims, but rather leave them pending for a bench trial,” the Circuit Court said.
“Accordingly, a district court may not certify an order denying a demand for jury trial, but not otherwise disposing of a claim or party, as final under Rule 54(b),” the Eleventh Circuit held.
Because the order denying a jury trial was not a final order, the appeals court dismissed the appeal for lack of appellate jurisdiction. The appeals court also dismissed the appeal as moot because the bankruptcy court had dismissed the adversary proceeding.
Observation
The circuit court could have reviewed the denial of a jury trial, but under a different statute.
The bankruptcy court could have certified an interlocutory appeal under 28 U.S.C. § 158(a)(3) and Bankruptcy Rule 8004. In turn, the district court could have certified an interlocutory appeal to the circuit under 28 U.S.C. § 158(d)(2). However, the circuit court may deny a petition for review of an interlocutory appeal.
Bankruptcy courts may not use Bankruptcy Rule 7054(a) to certify an interlocutory appeal, according to a nonprecedential opinion from the Eleventh Circuit.
Pro se, a chapter 7 debtor sued his mortgage lender in an adversary proceeding aimed at halting foreclosure. The debtor sought a jury trial.
The bankruptcy court denied the request for a jury trial. Later the bankruptcy court denied the debtor’s motion for a preliminary injunction.
The bankruptcy court certified the denial of a jury trial as a final order for appeal under Federal Rule 54(b), made applicable in the adversary proceedings by Bankruptcy Rule 7054(a). The district court affirmed, and the debtor appealed to the Eleventh Circuit.
While the appeal was pending in the circuit, the bankruptcy court dismissed the debtor’s complaint in full.
In the circuit, the lender contended that the appeals court lacked jurisdiction. The Eleventh Circuit agreed in an opinion on February 18 and dismissed the appeal because denial of a jury trial was an interlocutory order, and Rule 54(b) does not permit interlocutory appeals.