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Schwinn Plan Committee v. AFS Cycle & Co. (In re Schwinn Bicycle Co.)

Citations: 251 B.R. 508; 2000 Bankr. LEXIS 852Docket: Bankruptcy Nos. 92-B-22474 to 92-B-22482; Adversary No. 94 A 01618

Court: United States Bankruptcy Court, N.D. Illinois; August 9, 2000; Us Bankruptcy; United States Bankruptcy Court

Narrative Opinion Summary

In this case, Fairly Bike Manufacturing Company sought reconsideration of a previous court order denying their motion to amend and vacate a default judgment. The motion was evaluated under Federal Rule of Civil Procedure 60(b)(1), which limits relief to one year and requires specific criteria to be met. Fairly Bike attempted to argue for clerical correction under Rule 60(a), but the court found no clerical error, only a substantive disagreement with its original interpretation. The company's claims of unconstitutionality against various federal procedures were deemed waived due to lack of legal support. Additionally, Fairly Bike's motion was struck from the record because its counsel's pro hac vice admission had been revoked, necessitating representation by an attorney authorized to practice in the jurisdiction. The court confirmed this matter was a core proceeding under 28 U.S.C. 157. Ultimately, the court denied the motion for reconsideration, reaffirming its prior findings and upholding the default judgment against Fairly Bike.

Legal Issues Addressed

Core Proceedings under 28 U.S.C. 157

Application: The court confirmed its jurisdiction, noting that the matter constituted a core proceeding under the relevant statute.

Reasoning: The court confirmed its jurisdiction under 28 U.S.C. 157, with the matter constituting a core proceeding under 28 U.S.C. 157(b)(2)(A).

Distinction between Rule 60(a) and Rule 60(b)

Application: Fairly Bike's argument for clerical correction under Rule 60(a) was rejected since the court found no clerical error, but rather a substantive disagreement with the court's interpretation.

Reasoning: In this case, Fairly Bike's claim for relief did not qualify as a clerical error under Rule 60(a) since it did not demonstrate that the court's 1995 opinion misrepresented its intentions; rather, Fairly Bike contested the interpretation of its arguments, which the court accurately reflected.

Pro hac vice Admission and Representation

Application: The court struck Fairly Bike's motion due to the revocation of its counsel's pro hac vice admission, emphasizing the necessity of representation by an authorized attorney.

Reasoning: Additionally, Fairly Bike's motion was struck because its counsel's permission to appear pro hac vice had been revoked, preventing him from filing motions on behalf of the company.

Relief from Judgment under Rule 60(b)(1)

Application: The court denied relief from the default judgment under Rule 60(b)(1) as Fairly Bike did not meet the necessary criteria, including the one-year limitation for relief.

Reasoning: The original Motion to Amend was determined to fall under Fed. R. Civ. P. 60(b)(1), which imposes a one-year limitation for relief, and it was deemed that Fairly Bike did not meet the necessary criteria for vacating the default judgment.

Waiver of Unconstitutional Claims

Application: The court considered Fairly Bike's claims of unconstitutionality waived due to lack of legal support and failure to develop arguments.

Reasoning: Fairly Bike failed to provide any legal authority or constitutional provisions supporting its arguments against various federal rules. The U.S. Court of Appeals for the Seventh Circuit has established that undeveloped and unsupported arguments are considered waived, even if they involve constitutional claims.