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Cavazos v. Mid State Trust II (In re Hillsborough Holdings Corp.)

Citations: 270 B.R. 306; 15 Fla. L. Weekly Fed. B 25; 2001 Bankr. LEXIS 1590; 38 Bankr. Ct. Dec. (CRR) 202Docket: Bankruptcy Nos. 89-9715-8P1 through 89-9746-8P1; Adversary No. 00-500

Court: United States Bankruptcy Court, M.D. Florida; December 10, 2001; Us Bankruptcy; United States Bankruptcy Court

Narrative Opinion Summary

In this case, the court addressed a motion filed by Salvador and Rosabel Cavazos, along with 294 other plaintiffs, seeking an extension to file a notice of appeal that was submitted one day late. The plaintiffs' counsel cited 'excusable neglect' due to a busy schedule and mediation commitments. However, the court found that this reasoning did not meet the necessary standard for 'excusable neglect' as outlined in Rule 8002(c)(2) and interpreted by the Supreme Court in Pioneer Investment Services Co. v. Brunswick Associates Ltd. Partnership. The court emphasized the availability of local counsel and after-hours filing options that were not utilized. The court also noted that, despite the minor delay, granting the extension would prejudice the Debtor due to the protracted litigation since 1995. Ultimately, the motion for an extension was denied, affirming the October 9, 2001, deadline established under Rule 8002. The plaintiffs' good faith was acknowledged but deemed insufficient to alter the ruling. This decision highlights the strict adherence to procedural timelines and the limited scope for extensions based on claims of excusable neglect.

Legal Issues Addressed

Assessment of Prejudice and Length of Delay

Application: Although the delay was minor, the court determined that granting the extension would prejudice the Debtor, given the long history of litigation.

Reasoning: The court concluded that the length of delay was minor, but allowing the motion would prejudice the Debtor, given the lengthy history of litigation dating back to 1995.

Definition and Application of 'Excusable Neglect' under Rule 8002(c)(2)

Application: The court found that the plaintiffs did not demonstrate 'excusable neglect' as required for an extension, considering the circumstances of the counsel's other commitments and lack of timely action.

Reasoning: The court noted that Rule 8002(c)(2) allows extensions only with a demonstrated showing of excusable neglect, a term interpreted by the Supreme Court in Pioneer Investment Services Co. v. Brunswick Associates Ltd. Partnership, emphasizing an equitable assessment of circumstances.

Impact of Local and After-Hours Filing Options

Application: The court highlighted that local counsel could have filed in person and that the court allowed after-hours filings, which were not utilized by the plaintiffs' counsel.

Reasoning: The court highlighted that the Bankruptcy Courts in the Middle District of Florida allow after-hours filings, which could have accommodated the notice up until midnight on October 9th.

Timeliness of Notice of Appeal Filing under Rule 8002(a)

Application: The court denied the motion for an extension to file a notice of appeal as it was filed one day past the deadline established by Rule 8002(a), despite the plaintiffs' claim of 'excusable neglect.'

Reasoning: The motion, filed on October 10, 2001, was one day past the deadline established by Rule 8002(a), which requires filing within 10 days of a judgment.