Document ID: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-ca10-15-00028/USCOURTS-ca10-15-00028-0/pdf.json

Parties Involved:
Combat Brands, LLC
Appellant
Everlast Worldwide, Inc.
Appellee
Exemplar Holdings, LLC
Appellant
Greg Orman
Appellant
Eric C. Rajala
Appellant

Document Text:

UNITED STATES BANKRUPTCY APPELLATE PANEL

OF THE TENTH CIRCUIT

_________________________________

IN RE ASSET RESOLUTION 

CORPORATION, 

 Debtor.

__________________________________

COMBAT BRANDS, LLC, EXEMPLAR 

HOLDINGS, LLC, GREG ORMAN, and 

ERIC C. RAJALA,

 Appellants,

v.

EVERLAST WORLDWIDE, INC.,

 Appellee.

BAP No. KS-15-028

Bankr. No. 12-22932

Chapter 7

ORDER TRANSFERRING APPEAL 

TO U.S. DISTRICT COURT

September 9, 2015

_________________________________

Before MICHAEL, JACOBVITZ, and HALL, Bankruptcy Judges.

_________________________________

Before the Court are (a) Optional Appellee Statement of Election to Proceed in 

District Court [BAP ECF No. 12]; and (b) Appellants’ Motion Seeking Determination of 

the Validity of Appellee’s Statement of Election to Proceed in District Court [BAP ECF 

No. 15]. According to the Statement of Election, “Appellee elects to have the appeal 

heard by the United States District Court rather than by the Bankruptcy Appellate Panel 

in the event the Court determines the appeal is proper.” This election is intended to

spring into effect if the Court determines—after evaluating the responses to its August 

10, 2015 Order to Show Cause—that the appealed order is final or that leave to appeal 

BAP Appeal No. 15-28 Docket No. 18-1 Filed: 09/09/2015 Page: 1 of 3
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the order should be granted. The Court has found no authority in Title 28, the 

Bankruptcy Rules, this Court’s local rules, or case law for springing elections. A party 

elects to proceed in District Court or it does not. Once a party makes a timely election, 

this Court “must” transmit to the District Court all documents related to the appeal. Fed. 

R. Bankr. P. 8005(b). The Court construes Appellee’s timely Statement of Election as an 

election to proceed in District Court and will transmit the documents related to this 

appeal accordingly. 

In their motion to determine the validity of the election, Appellants argue that 

Appellee waived its right to proceed in District Court by requesting oral argument in its 

One Document [BAP ECF No. 5] and by filing a substantive memorandum [BAP ECF 

No. 4] in response to this Court’s Order to Show Cause. The Court disagrees. Our local 

rules do not provide for such a waiver, and filing documents—not directly related to the 

merits of the appeal—pursuant to preliminary Court directives and deadlines does not 

constitute a waiver of Appellee’s statutory right to make an election within 30 days after 

service of the notice of appeal. 28 U.S.C. § 158(c)(1)(B). 

For the reasons stated above, pursuant to 28 U.S.C. § 158(c)(1)(B) and Bankruptcy 

Rule 8005(b), it is HEREBY ORDERED that:

1. Appellants’ motion is DENIED to the extent it seeks to invalidate 

Appellee’s Statement of Election.

2. This Appeal is transferred to the United States District Court for the

District of Kansas.

3. Any deadlines, notices of deficiency, or orders to show cause previously 

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set in this appeal are VACATED.

4. All documents related to this appeal are transmitted to the United States 

District Court for the District of Kansas.

For the Panel

Blaine F. Bates

Clerk of Court

BAP Appeal No. 15-28 Docket No. 18-1 Filed: 09/09/2015 Page: 3 of 3