FishDish, LLP v. VeroBlue Farms USA, Inc., No. 19-3413 (8th Cir. 2021)
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A VeroBlue preferred shareholder, FishDish appeals the district court's order granting appellees' motions to dismiss FishDish's appeal of the bankruptcy court order confirming debtors' Chapter 11 plan of reorganization over FishDish's objections, and certain pre-confirmation orders.
After determining that the district court and this court have statutory subject matter jurisdiction, the Eighth Circuit concluded that the district court erred in limiting the mandatory but non-jurisdictional timeliness requirements of Bankruptcy Rule 8002 to appeals from final bankruptcy court orders. Because FishDish has conceded that its appeal from the preconfirmation Claim Objection Order was untimely under Rule 8002, the court affirmed the grant of appellees' Partial Motion to Dismiss Appeal on this alternative ground. In regard to the equitable mootness claim, the court concluded that the district court did not apply a sufficiently rigorous test to determine when bankruptcy equities and pragmatics justify foregoing Article III judicial review of a bankruptcy court order confirming a Chapter 11 plan. Therefore, the court remanded for further district court proceedings.
Court Description: [Loken, Author, with Grasz and Kobes, Circuit Judges] Civil case - Bankruptcy. Bankruptcy Rule 8002's 14-day deadline is mandatory, but it is not jurisdictional; as it is undisputed that appellant FishDish missed the mandatory 14-day time limit, the district court's order dismissing the appeal of the Claim Objection Order is affirmed; the district court erred in applying the doctrine of equitable mootness to dismiss FishDish's appeal of the Plan Confirmation Order without first making at least a preliminary review of the merits of FishDish's appeal to determine the strength of its claims, the amount of time that would likely be required to resolve the merits of those claims on an expedited basis, and the equitable remedies available, including possible dismissal, to avoid undermining the plan and thereby harming third parties; the issue of whether FishDish lacks bankruptcy standing because it is not a person aggrieved should not be decided on this record; remanded with directions.
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