When one defendant among many is in bankruptcy, an order dismissing the complaint as to all of the other defendants isn’t final and isn’t appealable.
However, a December 8 opinion from the Sixth Circuit explains how a plaintiff can appeal.
The plaintiff was evidently a prisoner suing prison employees and the outside company that provided health care in prison. The defendants filed a motion to dismiss. The district court granted the motion to dismiss as to all of the defendants except the health care provider.
Why? Because, the health care provider was in chapter 11, and the automatic stay precluded the district court from continuing the litigation against the health care company.
The district court entered an order dismissing the suit against the defendants other than the health care provider. The district court held the motion in abeyance as to the health care provider and administratively closed the case until the automatic stay goes away.
The plaintiff appealed the dismissal order. In a nonprecedential, per curiam order, the Sixth Circuit dismissed the appeal.
Under 28 U.S.C. § 1291, the appeals court said, “we have jurisdiction over appeals from final decisions of the district courts.” The opinion then says that the order was “not a final decision” because the “order left unresolved the claims against [the health care provider].” In addition, the order did “not become final and appealable because the district court administratively close[d] the case.”
The automatic stay protecting the health care provider might be replaced eventually by an order of discharge. If that’s the case, how could the plaintiff ever appeal?
The answer is easy, the Sixth Circuit said, citing F.R.C.P 54(b). Titled, “Judgment on Multiple Claims or Involving Multiple Parties,” the rule reads:
When . . . multiple parties are involved, 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. Otherwise, any order or other decision, however designated, that adjudicates fewer than all the claims or the rights and liabilities of fewer than all the parties does not end the action as to any of the claims or parties and may be revised at any time before the entry of a judgment adjudicating all the claims and all the parties’ rights and liabilities.
The Sixth Circuit indicated that the plaintiff could have mounted an appeal by obtaining a certification under Rule 54(b).
When one defendant among many is in bankruptcy, an order dismissing the complaint as to all of the other defendants isn’t final and isn’t appealable.
However, a December 8 opinion from the Sixth Circuit explains how a plaintiff can appeal.
The plaintiff was evidently a prisoner suing prison employees and the outside company that provided health care in prison. The defendants filed a motion to dismiss. The district court granted the motion to dismiss as to all of the defendants except the health care provider.
Why? Because, the health care provider was in chapter 11, and the automatic stay precluded the district court from continuing the litigation against the health care company.