Mitchem v. Branch Banking and Trust Company, No. 6:2011cv00015 - Document 10 (W.D. Va. 2011)
Court Description: MEMORANDUM OPINION. Signed by District Judge Glen E. Conrad on August 16, 2011. (sfc)
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CLERT:OFFI t, t! Cotl ' CE ?S.7$1. p r AT ROANOKE' VA FE y Ir' D As I21 L 21 I TH E UN I N TED STATES D I STRI COU RT CT FO R TH E W ESTERN D I STRI OF V I GI I CT R N A LY N CH BURG D I I O N V SI J A C. L N CLERI ULI DU ( G ' s; DEPU GLiR' v eg /' / t Ci lA c i N o.6: 1 e 0001 vi ton 1 - v5 l Re: n K EN N ETH L.M I TCH EM , D ebt or, K EN NETH L.M I TCH EM , A ppelant l , BR AN CH BAN K I G AN D TRU ST COM PAN Y , N A ppelee. l Ci lAc i n N o. 11 c 0 6 vi t o 6- - v- 001 l Re: n M EREDI R.BUIST, TH De t , b or M ERED I R.BUI TH ST, A ppe l nt la , BR AN CH BAN K I G AN D TRU ST COM PAN Y , N M EM O M N D U M O PI I N N O By: Hon.G l E.Com 'd en a Chi fUnied St t sD i t i tJ e t a e sr c udge Appelee l . M ee t R.Buita KemehL. ic m (oleci l d rdih s nd l t M the c l tvey,t Appelans' fldamotonon l t' ie ) i A ugus 26,2010,i t U nied St es Bankr cy Cour f t W es er D i t ctofVi ni t n he t at upt t or he t n sri rgi a (û r c Coul l s ki t a dale hedb Brnc Ba nga Tr tCompa y GBankupty f', ee ng o voi in l y a h nki nd us n (û $BB&T' .OnAprl1 2011 t Ba upc Cour de e Appelnt'moton.OnAprl7, ' ) i , ,he nkr ty t nid la s i i 2011 Appela sfl atmel noi ofa alp s ntt 28U. C.j1 () ) Howe r , lnt ied i y tce ppe urua o S. 58a(1. ve, A ppe l nt fl isdesgnato ofie st be i l ed i t r cor on a aland s a e e tof la s ied t i i n t m o nc ud n he e d ppe t tm n t is t beprs ed(t inai 'onM a 31 2011 f ry da a rt a ia e he sues o eent t g ton' des ) y , , o t ys he he pplc bl de i as s tf t by Fe r Rul ofB a r pt y Pr d e 8006. BB& T m ade no r s ns adlne e orh de al e nk u c oce ur e po e durng t pe i be w e n t t lng ofAppe l nt 'notc ofa i he rod t e he i i la s i e ppea a t l t tlng of l nd he a e i i Appe l n s de i ton. The on J 22, 1 BB& T fl d a m o i t di m i sba e on la t ' s gna i n, une 201 , ie ton o s s s d Appe l n s f l e t co pl w ih Rul 8 la t ' aiur o m y t e 006' de dlne f f lng is de i ton. Fort s a i or ii t s gna i he r as s cii be ow ,t c t ilde BB& T' m oton t di m i s e ons pe fed l he our w l ny s i o s s. BA CK G RO UN D The f l w i f c s a e pr e e i t lghtm os f vor bl t Appela t . olo ng a t r es nt d n he i ta a e o ln s A f e BB& T m o d t dim i s A ppe l nt fl d t i r pons on J y 18, l. l t tr ve o s s , la s ie he r es e ul 201 n he r s ns A ppe l nt ac e po e, la s know l e t i f lle t c pl w ih t flng dea i i pos d by edg he r aitr o om y t he ii dlne m e Rul 8 e 006. H o e r A ppe l nt a rt tbot t notc ofa w ve , la s ve ha h he i e ppea a t des g ton û e e l nd he i na i ' r w prpae andwe et beflda t s metme. ( ke No.8a !3. Acc di t Appelnt, e rd r o ie t he a i ' Doc t ' t ) or ng o la s a of i s a fm e be f A ppela s c n fce t f m r or l nt ' ouns lc t c e t Ba u c Cour on A pr l7,201 e on a t d he nkr pt y t i 1, t ve iyt tbot doc o rf ha h ument ha be n fld, nd wa i onne t tbot ie ha be n s d e ie a s nf d ha h t ms d e pr ryfld.(d. Appelnt ale t taBa u c Cour clr as saedt tAppelnt opel ie 1 ) la s lge ha nkrpty t ek lo tt ha la s s d r c ve a D i ti tCour ECF no i de aii al oft da eson w hi va i doc e s houl e ei sr c t tce t lng 1 he t ch rous um nt weedue.(d. r I) Af e Appe l nt c tr la s' ouns lhad no r c ve a ECF no i ,a m e berofc e t e ei d n tce m ouns l sofi e e ' fc s a fc a t d t Ban upt y Cour o A prl25, 1 a w a i or e by a cl r t t t f ont c e he kr c tn i 201 , nd s nf m d e k ha tsom etm esi t t i t akesl ongerand t w e s d gett em ai f om t D i r ctCourtbecaus t hat houl he l r he sti e he Appe lwa done. (d. Theofi safmembe onc aganc a tdt Ba u cyCo ton a s ' I) ' fce tf r e i ontce he nkr pt ur M a 27,2011 t i o m t Ba nl cy Co t ha Appel nt ha notyetr eve a ECF y , o nf r he nk pt ur t t la s d ec i d n no i e. l wasdurng t sphone con r a i t ta Ba u cy Cour c e k notfed Appe l nt ' tc t i hi ve s ton ha nkr pt t lr ii la s c ns t tt desg tonha notbee doc td.(d. Upo noi oft sfc, la s ou elha he inai d n kee l ) n tce hi a tAppelnt' co eli ditl tl t deinain.(d. Theofi safme rofAppel t'co e uns mme aey ied he sg to I ) fce tf mbe lans uns l w ho c onduc ed t f egoi c m uni tons wih t Ban u c Cour s it d a a f d t t he or ng om ca i t he kr pt y t ubm te n f i avi at tngt t tuhf nes oft eoc ure s td a 5. tesi o he r t ul s hes c rnce . L= t ) On A ugus 4,2011 BB& T fl is r pl bre . BB& T a guest tAppe l nt 'r la e t , ied t e y i f r ha la s e i nc on t Ba u c Cour c e k' as ur nce w a unf unde co i rng t f c t tdoc t he nkr pt y t lr s s a s s o d, ns de i he a t ha ke e l 31i t Ba u c Cour c e s a e , û o i e ofAppe lt D it i tCour .... A ppe l n nt' y n he nkr pt y t as t t s t tc N a o s rc t la t De i tond by4/ / 1' ( ke No.9a ! 1 Doc tNo.2, sgnai ue 21201 .' Doc t t 2; ke App.1a 4. BB&T alo t ) s as e t t tAppela s c s rs ha lnt ' ouns lha tmel fld a de inai i apr vi usba u c a a t e s i y ie sg ton n e o nkr pt y ppe l o t sDiti Cour ands dt r o ebefmii wihRul 8006' flngde dlne.( ke hi srct t houl heefr a lar t e s ii a i Doc t No.9a ! 1 ) t 3. DI U SSI N SC O LegalSt andard Fed a Rul ofBa u c Pr e e8 ()pr des i petnentpa t erl e nkr pty oc dur 001a ovi ,n ri r: An a l t s f l e t t ke a s e ot r t n tm e y flng a notc of a al ppelan ' aiur o a ny t p he ha i l ii ie ppe doe notaf e tt va i t oft a al buti g ound onl f s h a ton ast s f c he ldiy he ppe , s r y or uc c i he dititc torba upt y a lt pa de m sa oprae, c m a i ude src our nkr c ppela e nel e ppr it whi h y ncl dim i s loft a s sa he ppea . l Fe R.Ba .P.8 a) Ba e ont slngua ,t Fo t Cicuihasf t tSii ce r d. nkr 001( . s d hi a ge he urh r t ound ha ût s la t tt di t i tc r hasw ihi isdi c e i t po e t i pos s tons i l ng dim i s ha he sr c ou t t n t s r ton he w r o m e anc i nc udi s s al upon an appelantf notcom pl ng w ih t pr l or yi t he ocedur r r ent oft bankr cy r es.' al equi em s he upt ul ' l r Ser Buides I .970F. 1 1 ( hCi.1 . n e ra l r.nc, 2d 309, 311 4t r 992) The pa tc a pr dur lr e a i s i t s c s i Fe r Rul ofBa upt y ri ul r oce a ul t s ue n hi a e s de al e nkr c Pr ed e 8006. Thi nze pr vi s i pe tne tpa t oc ur s l o de , n ri n r : W ihi 1 da afe tlngt notc ofa alasprvi dbyRul 8 ( ..., t n 4 ys tr ii he ie ppe o de e 001a) t a la s l fl w ih t c e k a s r e on t a l e a des g t o of he ppe l nt hal ie t he l r nd e v he ppele i na i n t ie st be i l d i t r co d on ap a a a s a e en oft i s t be he t m o nc ude n he e r pe l nd t t m t he s ues o pee e r s nt d. Fe R.Ba .P.8006.Appelan sdono diput t i f iur t mee t flng de i d. nkr l t t s e he r al e o t he ii adlne i sdb Ru e8 0 .( c e No 8a !2) mpo e y l 0 6 Do k t . t . Des t t FourhCic tsrc tont tRul 8001a a horze t dimis ofa pie he t rui' e ognii ha e () ut i s he s sal n a alf f iur t co pl w ih pr e a r quie e s t Fo t Ci c tha a s m a nt i ppe or a l e o m y t oc dur l e r m nt , he urh r ui s l o i a ned t tthesnci ofdimis lf fiur t co ywihanon-urs ci lpr ce a ha t a ton t s s a or al e o mpl t j iditona, o durl g d ln , uc a Rue8 0 , i)ah rh s n to whc ad src c u t s n tmp s uieie s h s l 0 6 (s as a cin ih itit o r mu t o i o e lghty.' I r Se r Buider .l ,970 F. a 1 i l ' n e r a l s nc. 2d t 311. l a1 t n 990 mpubls d dec son,t Fourh Cic tva t a r m a d a dit i t i he i i he t r ui ca ed nd e nde s rc c ts de i i n t di m i sa a a f om t ba upt y co tf f iur t m a atm e y our ' c s o o s s n ppe l r he nkr c ur or a l e o ke i l de i ton flng u rRul 8006. l r Or ai 898 F. 1 N o.8 2799,1990 W L 27361 s gna i ii nde e n e g n, 2d 46, 9, a *1( hCi.Fe 28,1990)( t 4t r b. unpubls dtbl de iin)( rcura .I isopi on,t ihe a e cso pe im) n t ni he Fourh Ci c tr c ze f pos i e co s s ofa ton i c i rng whe he t di m i s a t r ui e ogni d our s bl ur e c i n ons de i t ro s s ba upc a a f f lr t co ywihapr e alrquie nt l . nkr ty ppe l or aiu e o mpl t oc dur e rme . ê. The f pot nta c s ofa ton,whi h t Fourh Cic thasdelnea ed f t ri a our e i l our es c i c he t r ui i t ur he n s e ntpubls d dec s on, n r Se r Buide s l , 0 F. a 1 11 a e asf l s ubs que i he i i l e r a l r , nc. 97 2d t 3 , r olow : ( )ma atndi ofba f t orne i nc ( gi t a lntnotc a an 1 ke i ng d aih glge e; 2) ve he ppela ie nd opporuniyt e ant dea ()c i rwhehe t dea ha a posi e t t o xpli he ly; 3 onsde t r he ly d ny sbl prj ca efc o t ot rpa te ;o ( i caet ti c i r t i c eudiil fe t n he he ris r 4) ndi t ha t onsdeed he mpa t oft s i and avaiabl aler i he ancton l e t natves. Jl TheF u t Cic i n tdt a (talr t tk a lato eo te ese c nsi tsa a us t .s o rh rut oe h t il iu e o a e te s n f h s tps o t ue n b e g t o di c e i ' l r Or i 1 W L 27361 a *1 How e r i a l t rpubls d opi o t f s r ton. n e qa n, 990 ' ,t . ve , n a e ihe ni n, he FourhCic tcaii dt tatprpe a iai ofgheSerlt twilnomal rquiea t rui lrte ha ç o r pplc ton t ra es l r ly e r dititco tt c i a balnc alrlva f t s' l r SPR Cor ,45F.d70, ( h src ur o onsder nd a e l ee nt acor. n e ' p. 3 74 4t Ci.1 )(mpha i a d) s alose. ,nr Byr No.0 11 2007 W L 41 r 995 e ss dde ; ee s c.I e d, 7- 26, 03048,a * t2 ( h Ci. 4t rNov.1 2007)( cai a rma ngadititc tsdimis ofaba upty 9, va tng nd e ndi src our' s sal nkr c a lf fiur t consde a balnc a1rlva fco si t Ser ts) W iki v. ppea or al e o i r nd a e l ee nt a tr n he ra e t; l ns W iki ,1 F. 95 No. l ns 81 3d , 982554,1 W L 31 999 7556,a *12( h Ci.Ma 20,1 t - 4t r y 999) ( unpubls dtbl decso (ame .Thepr e sofc i rngandbaa i t Se af t s ihe a e iin) s ) oc s onsdei lncng he n- acor c tt t a e c s com m it t t dit i tc ur ' di c e i I r SPR Cor , F. a ons iu es n xer i e ted o he s rc o ts s r ton. n e p. 45 3d t 74; e aloPa c P'hi M cmtCom . TM C TerplnM g . .158B. 61 65( . s e s ma o s p . v. ra a mtCom , R. , W D. Va.1 )(onsd i t Se af t sa e r sngdsr to no t dimisaba upty 993 c ierng he n' acor nd xecii ic ein t o s s nkr c a lf flngade i tononeda a trRul 8006' de i ) ppea or ii sgnai y fe e s adlne . l l r Se r Buide s I ,t Fourh Cic ta tr e a di t i tc tsdi m i s lofa n n e r a l r s nc. he t r ui fi m d s rc our ' s s a ba nknz c a a a trt a la f l d isRul 8006 des g ton t fe da pas t pt y ppe l fe he ppe l nt ie t e i na i i t en ys t he de i I r Se r B uide s l ,970 F. a 1 adlne. n e r a l r . nc. 2d t 309. The a lanti t tc e f l d is ppe l n ha as ie t de i ton onl a trt a leha tl ismoto t d s isbas onnonc sgna i y fe he ppele d ied t i n o im s ed ompla wih ince t Rul 800 I U nlke t dit i tc t n I r Or i t dit i tc ti l r Se r Buide s e 6. d. i he s rc our i n e ca n, he s rc our n n e r a l r . l f l e t pr s rbe pr oc . M or s ci c l t dit i tc t t d t tt nc. olow d he e c i d ot ol e pe t aly, he s rc our no e ha he i a la had f ie t pr en t c tw ih a co pe lng r a o f i sde a i t lng is ppe l nt a l d o es t he our t ny m li e s ns or t l y n i i t de i to l a 1 1. A ddii ly,t di ti tc tl be ed t a la ' co uc a s gna i n. d. t 31 tona l he sr c our a l he ppe l nt s nd t s neglgentw ih r pectt t entr pr i t es o he ie ocedur r r ent oft bankr cy appeal process. al equiem s he upt s = Id I a fr i t di t i tc tsde s o t di m i st a n f im ng he s rc our ' ci i n o s s he ppea ,t Fo t Cic talo l he ur h r ui s not t tt a l ntne r fl d a r que tf a tm e e e i be or t applc bl de dlne ed ha he ppela ve ie e s or i xt ns on f e he ia e a i . 1 Fur he m or t Fo t Ci c tf und t tt a la ' e a ton f r f ii t m a a d. t r e, he urh r ui o ha he ppe l nt s xpl na i o a lng o ke tmey flng(t atr wa o oft co r di no pr deas fcentbasst ove tr i l ii is toney s ut he unty) d t ovi ufii i o run t dititco tsd ii l he src ur ' ec son. d. B. A pplcati ofSerra t t i on es A fe c t r onduc i t Se r e l t o t c t us co l t tt s nc i of tng he r a va ua i n, he our m t nc ude ha he a ton dimis li nota o it . s sa s ppr pra e 1. B ad f t or neglgence aih i I s m s a r tf om A ppe l nt 'r s ns t t m oton t d s i s t tisf iu e t t ee ppa en r la s e po e o he i o i m s ha t a l r o m a a tm e y des g ton flng di no r s tf om bad f t ke i l i na i ii d t e ul r aih.H owe r t r la on t ve , he e i nce he Bank u c Cour cl r sas e to , n t f ce oft doc t sc r r r pr s nt ton t tt r pt y t e k' s ri ns i he a he ke ' ont a y e e e a i ha he de i ton hadno be n doc t d, oul c tt ene i nceon t pa t Appela s sgnai t e ke e c d onsiut glge he r of lnt . Furhe t nnor ,t f c t tAppe l n s c e he a t ha la t ' ouns lha tm e y fl d a des g t o i a pror e s i l ie i na i n n i ba up c a a s m s t i c t t tc nkr t y ppe l ee o ndi a e ha ouns l sf iur i t sc e t m a a tm e y flng e ' a l e n hi as o ke i l ii doe ,i fc, tt ene i nce(e r e soft Ba nz c Cour clr srprsnttons. s n a tconsiut glge rgadls he nk pty t ek' e ee ai ) l t a tac ,one w oul t nk t ta c ns i ntousl w ye ,e pe a l one ha ng doubt a n he bs r t d hi ha o c e i a r s ci ly vi s bout whe he a es e i ldo e ha be n doc t d,woul r tl t doc e t pr e thi c i nt t r n s nta cum nt s e ke e d ei e he um nt o ot c s le a i tt c e nce ofm i s ng a i po t ntde i I t s c s co elaleg t ha ga ns he ons que s s i n m ra adlne. n hi a e, uns l es o ve fl t desi i att s e tm e ast notce ofappeal m eani t counselhad an ied he gnaton he am i he i , ng hat a tona f t en da i w hi h t r tl t des g ton be or Rul 80065 de dlne e r d. ddii l oure ys n c o e i e he i na i f e e s a i xpie O n t ot rha i vi w i t f c si t lg m os f vor bl t A ppe l nt , he he nd, n e ng he a t n he i ht t a a e o la s A ppe l nt c la s' ouns la r t t lng bot t no i ofa a a t des gna i on t s m e da e ve s o i i h he tce ppe l nd he i ton he a y. 6 The e or bele ngt tbot do um e sha be doc t d, r f e, ivi ha h c nt d en ke e Appe lnt 'r i eon t la s elanc he Ban u c Cour cl r s r pe t r e e t tons ofs c s uldoc tng doe no s e t t ly kr pt y t e k' e a ed epr s n a i uc es f ke i s t e m oal m ipl c s a ed. 2. N otce and an opport t f t appelantt expl n t del i uniy or he l o ai he ay Appe l n s ha bee af o de a o r uniy t e a n t del y t o t i r pons la t ve n f r d n ppo t t o xpl i he a hr ugh he r es e t BB& T' m oton t dim i s. o s i o s s 3. W he hert deayhad a posi epr j ca ef tont oherparis t he l ny sbl eudiil fec he t te Ap la t cam t a BB&T h ss fe e n p eu iea ars l o tedea e fl g pelns li h t a u fr d o rj dc s e ut f h ly d ii , n bas d on t f c t tBB & T co i e he a t ha ntnuest hol a s o dee oft u ton A ppela s pr r y. o d ec nd d r s l nt ' ope t ( ke No.8a !6. Appelnt hi ihtt f tt t i t sco tuphol t Ba u c Doc t t ) la s ghlg he ac ha,f hi ur ds he nkrpty Cour' ode ,hedee oftus wilalow f lpa ntofBB&T' s urd cai (4) ts r r t d r t l l ul yme s ec e l m. L. BB&T c esbyi itngt ti ha s frdprj c t oughAppelnt'dea ountr nssi ha t s ufee eudie hr la s ly. BB& T not st tt t de l ng ba u c c e hasbe n pe ng f a m os one yea , e uli e ha he m r yi nkr pt y as e ndi or l t r r s tng i t pos pone e oft confr a i ofA p la t 'Cha e 1 pl BB& T m a n a nst t n he t m nt he im ton pe l n s pt r 3 an. i t i ha a i r naea ountoftm epas e wihouta opra ea ton by Appe lnt a t t asa n no di t m i sd t ppr it c i la s nd ha , r s l, e utBB&T wa p eu ie a Ap la t' lnrman du c n i ne a BB&T' s c rd s rj d c d s pelns p a e ie n o fn d nd s e ue cam rmane u pad.( c e No 9a ! 1 - 5) Fu t r r , li e i d n i Do k t . t ! 4 1 . r mo e BB&T alg sp eu ie he le e rj d c ba e upont f tt tt undel ngnot as r i t i (d.t! 1 ) sd he ac ha he ryi e lo emans mpad. L=a 6. How e r vi w i t f c s i t lghtm os f vor bl t Appe l nt i B B& T tul had ve , e ng he a t n he i ta a eo la s, f r y s fr dprj c asar s tofAppelnt'lt flng, ufe e eudie e ul la s ae ii BB&T prs bl wo dha fldis e uma y ul ve ie t m oton t di m i s s n afe Rul 8006' f t e da de dlne ha e r I t a BB& T i o s s oo t r e s our e n- y a i d xpied. ns e d, w aied f A ppelant t t et rdesi i fort daysl e and,f her or w aied an t or l s o il hei gnaton y at urt m e, t addii t ent t o days aferAppelant l e flng bef e l ng ism oton t di m i s wih tonal w y-w t l s' at ii or odgi t i o s s t t i c u t Th sd ly drs o s idc tst t c u th ta yprj ies fe e b BB&T wa hs o r. i ea e e p n e n iae o he o r ta n eudc u fr d y s m i ma. ni l 4. Im pactoft sancton and avaiabl alernatves he i l e t i A s m e i d a ve t Fourh Ci c thasde er i t tC he s nc i ofdi m i s f ntone bo , he t r ui t m ned ha k a ton t s s al or fi r t c mp ywihano j idci n lp o e u a g ieie s c a Rul 8 0 ,(s ah rh al e o o l t u n- s ito a, r c d r l ud ln , u h s e 0 6 i) as ur s nci whih adititc tmus noti pos lghty. l r Se r Buide s I ,970 F. a a ton c src our t m e i l ' n e r a l r , nc. ' 2d t 1 1 Fu te r ,h F u t Cic i h se d re t eprn i et tt l siei b te s r e 31 . rh nno e te o rh rut a n o s d h icpl ha tju tc s etr e v d l w he c r s e a e dec de on t i m e isr t rt n pr ed a t c c ii . I r SPR n ontover i s r i d he r rt a he ha oc ur l e hni altes' n e ' Com .45F. a 73( i SiraSwic r Co. W etnghous Elc.Co .789F. , 3d t quotng er thboad v. si e e m, 2d 7 707( hCi.1 ) s salofAppela s a alwoul wok g e tprj c upon 05, 9t r 995).Dimis lnt' ppe d r r a eudie Appelnt,whoa guet t S l et i hous i t a ali nothead.'( ke No. la s r hathey k os her e f he ppe s may r ' Doc t 8 a !5. t ) C O N CLU SI N O Ba e on t a i a i oft Se r t s t t s c s t cour c l sd he pplc ton he r a e t o hi a e, he t onc udest t ha A ppe l nt f iur t tl t i de i to wihi t tm e alote by Rul 8 doesnot la s' a l e o i e he r s gna i n t n he i l td e 006 w a r n t s nc i ofdi m i s . Appe l e BB& T' m oto t di m i s i t r f e de e An r a t he a ton s s al le s i n o s s s he e or ni d. a r r a e or rs l i s . pp op i t de ha l s ue The Cl r i di e t t s nd c r ii c e oft sM e or nd Opi on a t e k s r c ed o e e tted opi s hi m a um ni nd he a c pa ng Or ert a1 couns ofr c d. c om nyi d o l el e or ENTER:Ths / i ( d yo Au ut20 1 a f g s, 1 . Chi U nied St esD i t ctJ ef t at sri udge 8
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