BANKRUPTCY CORNER
Orders Determining Priority of Claim is Final and Immediately Appealable
JASON S . RIGOLI
“ Finality ” in the bankruptcy context is a flexible concept because bankruptcy is an aggregation of controversies and suits . Barben v . Donovan ( In re Donovan ), 532 F . 3d 1132 , 1136 ( 11th Cir . 2008 ) ( internal citation omitted ). However , “ orders in bankruptcy cases may be immediately appealed if the finally dispose of discrete disputes within the larger case .” A & S Entertainment , LLC v . Fla . Dep ’ t . of Revenue ( In re A & S Entertainment , LLC ), Case No . 22-12048 , 2022 U . S . App . LEXIS at * 4 , 2022 WL 17752234 ( quoting Bullard v . Blue Hills Bank , 575 U . S . 496 , 501 , 135 S . Ct . 1686 , 191 L . Ed . 2d 621 ( 2015 )).
An order determining the “ priority status of a creditor ’ s claim is a ‘ final ’ order because it resolves a discrete dispute within the bankruptcy proceeding .” A & S Entertainment , at * 4 ( citing Howard Delivery Serv ., Inc . v . Zurich Am . Ins . Co ., 547 U . S . 651 , 657 n . 3 , 126 S . Ct . 2105 , 165 L . Ed . 2d 110 ( 2006 ); In re Saco Loc . Dev . Corp ., 711 F . 2d 441 , 448 ( 1st Cir . 1983 ) ( majority opinion of Breyer , J .) ("[ A ] s long as an order allowing a claim or priority effectively settles the amount due the creditor , the order is ' final ' even if the claim or priority may be reduced by other claims or priorities .")).
A party must file a notice of appeal within 14 days of the entry of the order . Fed . R . Bankr . P . 8002 ( a ); 28 U . S . C . § 158 ( c )( 2 ). Failure to timely appeal the order means the district court will be deprived of jurisdiction to hear the appeal and be required to dismiss the appeal . This was the result in A & S
Entertainment .
Adam Rabin arabin @ rkjlawgroup . com
Complex Business Litigation l Whistleblower / Qui Tam Litigation Securities Arbitration l
Christopher Kammerer ckammerer @ rkjlawgroup . com
561.659.7878
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Lauren Johnson ljohnson @ rkjlawgroup . com
Havan Clark hclark @ rkjlawgroup . com
Referral fees paid consistent with Florida Bar Rules
This article submitted by Jason S . Rigoli , Furr and Cohen , P . A ., 2255 Glades Road , Suite 419A , Boca Raton , FL 33431 , jrigoli @ furrcohen . com
PBCBA BAR BULLETIN 8