Narrative Opinion Summary
In a case before the Fourteenth Court of Appeals in Texas, American Workers Insurance Services, Inc. and Association Health Care Management, Inc. filed an appeal against Insurety Capital, LLC. However, the appellants filed for voluntary bankruptcy protection in the U.S. Bankruptcy Court for the Northern District of Texas, which led to the issuance of an Abatement Order on October 22, 2019. Under Texas appellate rules, the filing of bankruptcy by the appellants results in the suspension of the appeal, as it is treated as a closed case for administrative purposes while retaining jurisdiction. The appellate court instructed that the parties could move to reinstate the appeal contingent upon federal law or a directive from the bankruptcy court. Any motion for reinstatement must be accompanied by a certified order from the bankruptcy court if the stay is lifted or terminated, and should specify the actions required from the appellate court. The panel responsible for the order consisted of Chief Justice Frost and Justices Wise and Hassan. This procedural pause highlights the intersection between bankruptcy proceedings and appellate review, illustrating the legal mechanics that govern such circumstances.
Legal Issues Addressed
Abatement of Appealsubscribe to see similar legal issues
Application: The court ordered the appeal to be abated, treating it as a closed case for administrative purposes without losing jurisdiction.
Reasoning: Consequently, the court ordered the appeal abated, meaning it is treated as a closed case for administrative purposes without surrendering jurisdiction.
Effect of Bankruptcy Filing on Appealssubscribe to see similar legal issues
Application: The filing for bankruptcy by the appellants led to the suspension of the appeal in accordance with Texas appellate rules and federal law.
Reasoning: Under Texas appellate rules, filing for bankruptcy suspends the appeal until reinstated by the appellate court per federal law.
Procedure for Reinstatement of Appeal Post-Bankruptcysubscribe to see similar legal issues
Application: Parties can file a motion to reinstate the appeal if permitted by federal law or the bankruptcy court, and must include a certified copy of any relevant order lifting or terminating the stay.
Reasoning: Parties may file a motion to reinstate the appeal if allowed by federal law or the bankruptcy court, attaching a certified copy of any relevant order from the bankruptcy court if the stay has been lifted or terminated.