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Metcalf v. Wernerdal (In re Adbox, Inc.)

Citation: 225 F. App'x 469Docket: No. 05-56390

Court: Court of Appeals for the Ninth Circuit; March 14, 2007; Federal Appellate Court

Narrative Opinion Summary

Donald and Janet Metcalf appealed the district court's dismissal of their appeal regarding the bankruptcy court's order that quashed their subpoenas and imposed sanctions. The dismissal for failure to prosecute was reviewed for abuse of discretion and was affirmed. Under 11 U.S.C. § 362(a), filing for bankruptcy triggers an automatic stay against proceedings brought against the debtor. However, the automatic stay did not apply to the Metcalfs' appeal because an examination under Federal Rule of Bankruptcy Procedure 2004, related to the Adbox bankruptcy, is not classified as a "proceeding" under 11 U.S.C. § 362. As a result, the district court acted within its discretion in dismissing the appeal due to the Metcalfs' inaction; they did not take steps to prosecute the appeal before the court's order to show cause and failed to respond adequately and timely to that order. The decision is affirmed and is not intended for publication or as precedent, per 9th Cir. R. 36-3.

Legal Issues Addressed

Automatic Stay under 11 U.S.C. § 362(a)

Application: The automatic stay provision did not apply to the Metcalfs' appeal, as the proceeding in question was not considered a 'proceeding' under the statute.

Reasoning: Under 11 U.S.C. § 362(a), filing for bankruptcy triggers an automatic stay against proceedings brought against the debtor. However, the automatic stay did not apply to the Metcalfs' appeal because an examination under Federal Rule of Bankruptcy Procedure 2004, related to the Adbox bankruptcy, is not classified as a 'proceeding' under 11 U.S.C. § 362.

Court's Discretion in Dismissal

Application: The district court was within its discretion to dismiss the appeal due to the Metcalfs' failure to prosecute and inadequate response to the order to show cause.

Reasoning: As a result, the district court acted within its discretion in dismissing the appeal due to the Metcalfs' inaction; they did not take steps to prosecute the appeal before the court's order to show cause and failed to respond adequately and timely to that order.

Federal Rule of Bankruptcy Procedure 2004

Application: Examinations under this rule are not considered 'proceedings' for the purposes of the automatic stay under 11 U.S.C. § 362, allowing the district court to proceed with the dismissal.

Reasoning: The automatic stay did not apply to the Metcalfs' appeal because an examination under Federal Rule of Bankruptcy Procedure 2004, related to the Adbox bankruptcy, is not classified as a 'proceeding' under 11 U.S.C. § 362.

Non-Precedential Decision

Application: The decision in this case is not intended for publication or as precedent, consistent with circuit rules.

Reasoning: The decision is affirmed and is not intended for publication or as precedent, per 9th Cir. R. 36-3.

Review of Dismissal for Failure to Prosecute

Application: The district court's dismissal of the appeal was reviewed for abuse of discretion and was affirmed due to the appellants' failure to take necessary actions.

Reasoning: The dismissal for failure to prosecute was reviewed for abuse of discretion and was affirmed.