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Silver v. ResCap Borrower Claims Trust

Citation: 698 F. App'x 34Docket: No. 16-1273-bk

Court: Court of Appeals for the Second Circuit; October 11, 2017; Federal Appellate Court

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Francine Silver appeals the decisions of the United States Bankruptcy Court for the Southern District of New York, which (1) disallowed her claim against Res-Cap Borrower Claims Trust for wrongful foreclosure and unjust enrichment, and (2) denied her unopposed motion for immediate payment of that claim. Silver challenges the bankruptcy court's decisions and questions the impartiality of both the bankruptcy and district court judges.

The review of the district court's decision is conducted with a plenary approach, assessing legal conclusions de novo and factual findings for clear error. The court affirms the bankruptcy court’s denial of Silver’s claims, agreeing with the rationale presented in the district court’s March 22, 2016 Memorandum and Order. 

Silver raises the issue of the district judge’s impartiality for the first time on appeal. Generally, appellate courts do not consider issues not raised in the lower court unless there is a compelling reason. Silver argues that her delay in raising the impartiality claim was due to discovering relevant facts only after the district court's ruling; however, these facts were publicly available prior to that ruling. Consequently, the appellate court declines to address the partiality claim. Even if it were considered, Silver’s arguments do not provide a basis to question the district judge’s impartiality.

The court concludes that Silver's remaining arguments are without merit, thereby affirming the judgment of the district court.