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Gray v. Evercore Restructuring, L.L.C.

Citation: 544 F.3d 315Docket: No. 07-2589

Court: Court of Appeals for the First Circuit; October 6, 2008; Federal Appellate Court

Narrative Opinion Summary

In this case, High Voltage Engineering Corporation (HVE) and its affiliates initially filed for Chapter 11 bankruptcy in 2004, resulting in the confirmation of a reorganization plan (the 2004 Plan). However, the reorganization was unsuccessful, prompting HVE to file new Chapter 11 petitions in 2005 and appointing a trustee who later proposed a liquidating plan (the 2006 Plan). Despite the new filing, the trustee sought to vacate fee orders from the 2004 cases under Federal Rule of Civil Procedure 60(b), but the bankruptcy court denied these motions in both the 2004 and 2005 cases. The trustee appealed only the 2005 cases, leading to a motion to dismiss by the fee recipients. The district court dismissed the appeal, citing res judicata and the expiration of the appeal period for the 2004 cases. The appellate court affirmed this dismissal, emphasizing the necessity of proper procedural adherence for maintaining jurisdiction. The case underscores the importance of correctly filing appeals and the separate treatment of consolidated cases for appeal purposes.

Legal Issues Addressed

Application of Federal Rule of Civil Procedure 60(b)

Application: The trustee's motion under Rule 60(b) was denied as it was filed inappropriately in the 2005 cases and did not address any order in those cases.

Reasoning: The bankruptcy court denied Rule 60(b) motions in both the 2004 and 2005 cases through identical orders.

Finality of Unappealed Orders

Application: The district court ruled that the trustee's failure to appeal the 2004 cases rendered the denial of Rule 60(b) motions final and unappealable.

Reasoning: The trustee’s failure to appeal in those cases resulted in the denial becoming final and unappealable.

Jurisdiction Over Bankruptcy Cases

Application: The bankruptcy court retained jurisdiction over matters related to the 2005 cases but did not assert jurisdiction over fee orders or Rule 60(b) motions from the 2004 cases.

Reasoning: The 2006 confirmation order did not assert jurisdiction over fee orders or Rule 60(b) motions from the 2004 cases, retaining jurisdiction only over the 2005 cases.

Separate Treatment of Consolidated Cases for Appeal

Application: The trustee's appeal was improperly filed because it did not specify an order from the 2005 cases, and the denial of the 2004 cases became final and unappealable due to the lack of a notice of appeal.

Reasoning: Even if consolidation existed, case law establishes that consolidated cases are treated separately for appeal purposes, requiring a notice of appeal for each case.