# U ni te d S ta te s B an kr up tc y A pp el la te P an el For the Eig hth Circu it

__ __ __ __ __ __ __ __ __ __ __ __ __ _ No. 1 4- 60 18

__ __ __ __ __ __ __ __ __ __ __ __ __ _ In re: Tri-S ta te Fin an ci al , LLC, do in g b us in es s as Nort h C ou nt ry Eth an ol

ll ll ll ll ll ll ll ll ll ll l Deb to r

----- ----- ----- ----- ----- ----- Tho m as D. Stal na ke r, Trus te e
ll ll ll ll ll ll ll ll ll ll l Pla in ti

ff - App el le e

v.
Geo rg e All is on ; Fr an k C ern ik ; Ph y ll is Cern ik ; Ch ris Dani el ; Am y Dani el ; Dis te fan o F am il y

LTD Partn ers hi p
ll ll ll ll ll ll ll ll ll ll l Defe nd

an ts - App el la nt

s
Mar k E. Ehr ha rt; Ro be rt G. Gri ffi n; Jo hn Hoi ch ; Den is e Hoi ch

ll ll ll ll ll ll ll ll ll ll l Defe nd

an ts
Tim ot hy Jack es ; J am es G. Jan dr ai n;
ll ll ll ll ll ll ll ll ll ll ll Defe nd

an ts - App el la nt

s
Am eri can Int ers ta te Ban k

ll ll ll ll ll ll ll ll ll ll ll Defe nd

an t
Geo rg e Kram er; Bern ie Marq ua rd tll ll ll ll ll ll ll ll ll ll l Defe nd an ts - App el la nt

s
Rad io Eng in eeri ng Ind us tri es , Inc .; J os ep h Vac an ti , Trus te e o f The Jo se ph an d Cy nt hi a Vaca nt i Tru st
ll ll ll ll ll ll ll ll ll ll l Defe nd

an ts
Cen tri s Fe de ral Cred it Uni on
ll ll ll ll ll ll ll ll ll ll l Defe nd

an t - Ap pe ll ee

----- ----- ----- ----- ----- -----
Cen tri s Fe de ral Cred it Uni on
ll ll ll ll ll ll ll ll ll ll l Co un te rcl ai m an d C ro ss -Cl ai m Pla in ti

ff - App el le e

v.
Tho m as D. Stal na ke r, Trus te e
ll ll ll ll ll ll ll ll ll ll l Co un te rcl ai m Defe nd an t - Ap pe ll ee
Geo rg e All is on ; Fr an k C ern ik ; Ph y ll is Cern ik ; Ch ris Dani el ; Am y Dani el ; Dis te fan o F am il y

LTD Partn ers hi p
ll ll ll ll ll ll ll ll ll ll l Cro ss -Cl ai m Defe nd an ts - App el la nt

s
Mar k E. Ehr ha rt; Ro be rt G. Gri ffi n; Jo hn Hoi ch ; Den is e Hoi ch

ll ll ll ll ll ll ll ll ll ll l Cro ss -Cl ai m Defe nd an ts
Tim ot hy Jack es ; J am es G. Jan dr ai n; Geor ge Kram er; Bern ie Marq ua rd t
ll ll ll ll ll ll ll ll ll ll l Cro ss -Cl ai m Defe nd an ts - App el la nt

s
Rad io Eng in eeri ng Ind us tri es , Inc .; J os ep h Vac an ti , Trus te e o f The Jo se ph an d Cy nt hi a Vaca nt i Tru st
ll ll ll ll ll ll ll ll ll ll l Cro ss -Cl ai m Defe nd an ts__ __ __ __ __ __ __ __ __ __ __ __ __ _ No. 1 4- 60 19

__ __ __ __ __ __ __ __ __ __ __ __ __ _ In re: Tri-S ta te Fin an ci al , LLC, do in g b us in es s as Nort h C ou nt ry Eth an ol

ll ll ll ll ll ll ll ll ll ll l Deb to r

----- ----- ----- ----- ----- ----- Tho m as D. Stal na ke r, Trus te e
ll ll ll ll ll ll ll ll ll ll l Pla in ti

ff

v.
Geo rg e All is on , Jr.; Fran k C ern ik ; Ph y ll is Cern ik ; Ch ris Dani el ; Am y Dani el ; Dis te fan o F am il y

LTD Partn ers hi p; Mark E. Ehrh art ; Ro be rt G. Gri ffi n; Jo hn Hoi ch ; Den is e Hoi ch ; Ti m ot hy Jack es ; J am es G. Jan dr ai n; Am eri can Int ers ta te

Ban k; Geor ge Kram er; Bern ie Marq ua rd t
ll ll ll ll ll ll ll ll ll ll l Defe nd

an ts
Rad io Eng in eeri ng Ind us tri es , Inc

. ll ll ll ll ll ll ll ll ll ll l Defe nd

an t - Ap pe ll an t

Jo se ph Vacan ti , Trus te e o f The Jo se ph an d C y nt hi a Vaca nt i Tru st
ll ll ll ll ll ll ll ll ll ll l Defe nd

an ts
Cen tri s Fe de ral Cred it Uni on
ll ll ll ll ll ll ll ll ll ll l Defe nd

an t - Ap pe ll ee

----- ----- ----- ----- ----- -----
Cen tri s Fe de ral Cred it Uni onll ll ll ll ll ll ll ll ll ll l Co un te rcl ai m an d C ro ss -Cl ai m Pla in ti

ff - App el le e

v.
Tho m as D. Stal na ke r, Trus te e
ll ll ll ll ll ll ll ll ll ll l Co un te r-Cl ai m Defe nd an t
Geo rg e All is on ; Fr an k C ern ik ; Ph y ll is Cern ik ; Ch ris Dani el ; Am y Dani el ; Dis te fan o F am il y

LTD Partn ers hi p; Mark E. Ehrh art ; Ro be rt G. Gri ffi n; Jo hn Hoi ch ; Den is e Hoi ch ; Ti m ot hy Jack es ; J am es G. Jan dr ai n; Geor ge Kram er; Bern ie Mar qu ard t
ll ll ll ll ll ll ll ll ll ll l Cro ss -Cl ai m Defe nd an ts
Rad io Eng in eeri ng Ind us tri es , Inc

. ll ll ll ll ll ll ll ll ll ll l Cro ss -Cl ai m Defe nd an t - Ap pe ll an t

Jo se ph Vacan ti , Trus te e o f The Jo se ph an d C y nt hi a Vaca nt i Tru st
ll ll ll ll ll ll ll ll ll ll l Cro ss -Cl ai m Defe nd an t

__ __ __ __ __ __ __ __ __ __ __ __ __ _ No. 1 4- 60 20

__ __ __ __ __ __ __ __ __ __ __ __ __ _ In re: Tri-S ta te Fin an ci al , LLC, do in g b us in es s as Nort h C ou nt ry Eth an ol

ll ll ll ll ll ll ll ll ll ll l Deb to r

----- ----- ----- ----- ----- ----- Tho m as D. Stal na ke r, Trus te e
ll ll ll ll ll ll ll ll ll ll l Pla in ti

ff

v.
Geo rg e All is on ; Fr an k C ern ik ; Ph y ll is Cern ik ; Ch ris Dani el ; Am y Dani el ;Dis te fan o F am il y LTD Partn ers hi p; Mark E. Ehrh art ; Ro be rt G. Gri ffi n
ll ll ll ll ll ll ll ll ll ll l Defe nd

an ts

Jo hn Hoi ch ; Den is e Hoi ch

ll ll ll ll ll ll ll ll ll ll l Defe nd

an ts - App el la nt

s
Tim ot hy Jack es ; J am es G. Jan dr ai n; Am eri can Int ers ta te Ban k; Geor ge Kram er; Bern ie Marq ua rd t; Rad io Eng in eeri ng Ind us tri es , Inc .; J os ep h Vac an ti , Trus te e o f

The Jo se ph an d C y nt hi a Vaca nt i Tru st
ll ll ll ll ll ll ll ll ll ll l Defe nd

an ts
Cen tri s Fe de ral Cred it Uni on
ll ll ll ll ll ll ll ll ll ll l Defe nd

an t - Ap pe ll ee

----- ----- ----- ----- ----- ----
Cen tri s Fe de ral Cred it Uni on
ll ll ll ll ll ll ll ll ll ll l Co un te rcl ai m an d C ro ss -Cl ai m Pla in ti

ff - App el le e

vs

. Tho m as D. Stal na ke r, Trus te e
ll ll ll ll ll ll ll ll ll ll l Co un te rcl ai m Defe nd an t
Geo rg e All is on ; Fr an k C ern ik ; Ph y ll is Cern ik ; Ch ris Dani el ; Am y Dani el ; Dis te fan o F am il y

LTD Partn ers hi p; Mark E. Ehrh art ; Ro be rt G. Gri ffi n
ll ll ll ll ll ll ll ll ll ll l Cro ss -Cl ai m Defe nd an ts

Jo hn Hoi ch ; Den is e Hoi ch

ll ll ll ll ll ll ll ll ll ll l Cro ss -Cl ai m Defe nd an ts - App el la nt

s
Tim ot hy Jack es ; J am es G. Jan dr ai n; Geor ge Kram er; Bern ie Marq ua rd t; Rad ioEng in eeri ng Ind us tri es , Inc .; J os ep h Vac an ti , Trus te e o f The Jo se ph an d C y nt hi a Vacan ti Trus t
ll ll ll ll ll ll ll ll ll ll l Cro ss -Cl ai m Defe nd an t s

__ __ __ __ __ __ __ __ __ __ __ __ __ _ No. 1 4- 60 25

__ __ __ __ __ __ __ __ __ __ __ __ __ _ In re: Tri-S ta te Fin an ci al , LLC, do in g b us in es s as Nort h C ou nt ry Eth an ol

ll ll ll ll ll ll ll ll ll ll l Deb to r

----- ----- ----- ----- ----- ----- Tho m as D. Stal na ke r, Trus te e
ll ll ll ll ll ll ll ll ll ll l Pla in ti

ff - App el le e

v.
Geo rg e All is on ; Fr an k C ern ik ; Ph y ll is Cern ik ; Ch ris Dani el ; Am y Dani el ; Dis te fan o F am il y

LTD Partn ers hi p; Mark E. Ehrh art ; Ro be rt G. Gri ffi n; Jo hn Hoi ch ; Den is e Hoi ch ; Ti m ot hy Jack es ; J am es G. Jan dr ai n

ll ll ll ll ll ll ll ll ll ll l Defe nd

an ts
Am eri can Int ers ta te Ban k

ll ll ll ll ll ll ll ll ll ll l Defe nd

an t - Ap pe ll an t
Geo rg e Kram er; Bern ie Marq ua rd t; Rad io Eng in eeri ng Ind us tri es , Inc .; J os ep h

Vacan ti , Trus te e o f The Jo se ph an d C y nt hi a Vaca nt i Tru st

ll ll ll ll ll ll ll ll ll ll l Defe nd

an ts
Cen tri s Fe de ral Cred it Uni on
ll ll ll ll ll ll ll ll ll ll l Defe nd

an t - Ap pe ll ee----- ----- ----- ----- ----- -----
Cen tri s Fe de ral Cred it Uni on
ll ll ll ll ll ll ll ll ll ll l Co un te rcl ai m an d C ro ss -Cl ai m Pla in ti

ff

v.
Tho m as D. Stal na ke r, Trus te e
ll ll ll ll ll ll ll ll ll ll l Co un te rcl ai m Defe nd an t
Geo rg e All is on ; Fr an k C ern ik ; Ph y ll is Cern ik ; Ch ris Dani el ; Am y Dani el ; Dis te fan o F am il y

LTD Partn ers hi p; Mark E. Ehrh art ; Ro be rt G. Gri ffi n; Jo hn Hoi ch ; Den is e Hoi ch ; Ti m ot hy Jack es ; J am es G. Jan dr ai n; Geor ge Kram er; Bern ie Mar qu ard t; Rad io Eng in eeri ng Ind us tri es , Inc .; J os ep h Vac an ti , Trus te e o f The

Jo se ph an d C y nt hi a Vaca nt i Tru st
ll ll ll ll ll ll ll ll ll ll l Cro ss -Cl ai m Defe nd an ts

__ __ __ __ __ __ App eal fro m

Uni te d S ta te s B an kr up tc y Co ur t fo r th e Dis tri ct of Ne br as ka - Om ah a

__ __ __ __ __ __ Su bm it te d: Aug us t 2 7, 2 01 4 Fil ed : Oct ob er 2 3, 2 01 4

__ __ __ __ __ __ Befo re KRESSEL, SCHERM ER, an d NAIL, Ban kr up tc y Ju dg es

.

__ __ __ __ __ __ NAIL, Ban kr up tc y

Ju dg e.

Ja m es G. Ja nd rai n, Dis te fan o Fam il y Ltd

. P a r t n e r sh ip , Geo rg e All is on , Jr ., Fran k a nd Ph y ll is Cern ik , Chr is an d Am y Dani el , Tim ot hy Jack es , Geor ge Kram er,
an d Bern ie Mar qu ard t (co ll ect iv el y , "J an dr ai n, et al

. ") ap p e a l th e May 22 , 20 14 jud gm en t of th e ba nk ru pt cy co ur t de te rm in in g cert ai n fu nd s were pr op ert y of th eba nk ru pt cy es ta te , award in g Trus te e Tho m as D. St al na ke r cert ai n fees an d ex pe ns es ,

a n d su rch arg in g th os e fees an d ex pe ns es ag ai ns t th e fu nd s th e ba nk ru pt cy co ur t de te rm in ed were pr op ert y of th e b an kr up tc y es ta te

. Rad io Eng in eeri ng In du st rie s, In c. ("R EI"), Jo hn Hoi ch an d Den is e Hoi ch , an d Am eri can In te rs ta te Ban co rp or at io n ("Am eri can In te rs ta te ") each se pa rat el y ap pe al th e sa m e jud gm en t. W e rev ers e an d

rem an d fo r fu rth er p ro ceed in gs co ns is te nt wit h t hi s o pi ni on

.

BACKGROUND

In Ju ne an d Ju ly 20 03 , a gr ou p of in ve st or s refe rred to as "t he Om ah a Gro up " tra ns ferr ed $2 ,00 0,0 00 .00 to Tri- St at e Fi na nc ia l, LLC. Ove r th e fo ll owi ng y ear, TriSt at e Fina nc ia l tra ns ferr ed $7 93 ,65 4.4 2 of th os e fu nd s to Tri- St at e Eth an ol Co m pa ny , LLC, whi ch was in ch ap te r 11 ba nk ru pt cy in th e Dis tri ct of So ut h Dak ot a, an d $1 ,19 0,0 00 .00 of t ho se fun ds to on e o f Tri- St at e Eth an ol 's v en do rs

.

In Ju ly 20 04 , Tri- St at e Eth an ol 's cas e was co nv ert ed to ch ap te r 7, an d Jo hn S. Lov al d was ap po in te d ch ap te r 7 tru st ee. Tri- S t a t e F i na nc ia l fil ed a req ue st fo r pa y m en t of an ad m in is tra ti ve ex pe ns e an d a pr oo f of cl ai m se ek in g reco ve ry of bo th th e $7 93 ,65 4.4 2 an d th e $1 ,19 0,0 00 .00

. In Ju ly 20 06 , L ova ld pa id Tri- St at e Fi na nc ia l th e $7 93 ,65 4.4 2. Tri- St at e Fi na nc ia l di st rib ut ed th e en ti re su m to th e Om ah a Gro up

.

In N o v e mber 20 08 , Tri- St at e Fi na nc ia l fil ed a pe ti ti on fo r rel ie f un de r ch ap te r 11 of th e ba nk ru pt cy co de

. In Ja nu ary 20 09 , St al na ke r was ap po in te d ch ap te r 11 tru st ee. So m et im e th erea fte r, Lov al d p ai d S ta ln ak er t he $1 ,19 0,0 00 .00

.

In Sep te m

be r 20 10 , St al na ke r fil ed an ad ve rs ary p r o ceed in g to de te rm in e
own er s h i p of th e $1 ,19 0,0 00 .00

. St al na ke r cl ai m ed th e fu nd s were pr op ert y of th e ba nk ru pt cy es ta te

. Cen t r i s Fed eral Cred it Uni on ("C en tri s" ) ag reed th e fu nd s were pr op ert y of th e ba nk ru pt cy es ta te , bu t it cl ai m ed th e fu nd s were su bjec t to it s bl an ke t

se cu rit y in te res t in Tri- St at e Fi na nc ia l's as se ts

. Ja nd rai n, et al

. cl ai m ed th e fu nd s were he ld in tru st by Tri- St at e Fi na nc ia l an d were th u s n o t pr op ert y of th e es ta te

. The
-8

-mat t e r w a s tri ed , a nd on Feb ru ary 1 3, 20 13 , t he ba nk ru pt cy co ur t en te red an or de r :

(1 ) de te rm in in g th e fu nd s were no t pr op ert y of th e ba nk ru pt cy es ta te ; (2 ) de te rm in in g th e ba nk ru pt cy es ta te was en ti tl ed to be rei m bu rs ed bo th fo r th e le ga l f e e s an d

ex pe ns es it in cu rre d i n li ti ga ti ng an d ev en tu al ly se tt li ng wit h Lov al d an d fo r th e at t o r n e y fees , co st s, an d ex pe ns es it in cu rred in th e ad ve rs ary pr oc eed in g; an d (3 )

ou tl in in g th e pr oc ed ur e fo r St al na ke r to req ue st rei m bu rs em en t fo r th os e fees , co st s,
an d e xp en se s.

St al na ke r req ue st ed $3 5,9 44 .45 fo r th e le ga l fees an d ex pe ns es th e ba nk ru pt cy
es ta te in cu rred in li ti ga ti ng an d ev en tu al ly s et tl in g wit h Lov al d an d $6 1,8 86

. 9 0 fo r th e at to rn ey fees , co st s, an d ex pe ns es th e ba nk ru pt cy es ta te in cu rred in th e ad ve rs ary pr oc eed in g. No pa rty in in te res t o b je c t e d to th e am ou nt s req ue st ed or to th e $3 5,9 44 .45 be in g su rch arg ed ag ai ns t th e $1 ,19 0,0 00 .00

. Howev er, se ve ral pa rti es in in te res t, in cl ud in g Ja nd rai n, et al

. , ob jecte d to t h e $6 1,8 86 .90 be in g su rch arg ed ag ai n s t th e $1 ,19 0,0 00 .00

. The m at te r was he ard , an d on May 21 , 20 13 , th e ba nk ru pt cy

co ur t en te red an ord er al lo win g th e am ou nt s req ue st ed an d s ur ch arg in g bo th am ou nt s ag ai ns t t he $1 ,19 0,0 00 .00

.

On th at sa m e da te , th e ba nk ru pt cy co ur t en te red a jud gm en t in co rp or at in g th e te rm s of it s Feb ru ary 13 , 20 13 an d May 21 , 20 13 or de rs

. St al na ke r an d Cen tri s 1 ti m el y fil ed a no ti ce of ap pe al

. Ja nd rai n, et al

. ti m el y fil ed a no ti ce of cros s- ap pe al

.

On ap pe al , th e pa rti es id en ti fie d a p l e th or a of is su es th ey be li ev ed were pr es en te d b y

th e ap pe al an d t he cro ss -ap pe al

. W e bo il ed th os e is su es do wn t o t wo: (1 ) whe th er th e ba nk ru pt cy co ur t e r r e d i n co nc lu di ng th e $1 ,19 0,0 00 .00 was no t pr op ert y of th e ba nk ru pt cy es ta te ; an d (2 ) whe th er th e ba nk ru pt cy c o u r t erre d in

su rch arg in g St al na ke r's at to rn ey fees , co st s, an d ex pe ns es ag ai ns t th e $1 ,19 0,0 00 .00

.

Acco rd in g to th e jud gm en t, th e am ou nt s award ed were $3 5,9 44 .45 an d 1 $6 1,2 86 .90

. -9

-Afte r rev ie win g th e reco rd an d co ns id eri ng th e pa rti es ' arg um en ts , we de te rm in ed an y

co ns id erat io n o f ei th er i ss ue wou ld ha ve be en pre m at ur e.

In th ei r po st -tr ia l br ie f, St al na ke r an d Cen tri s arg ue d, in te r al ia , "[Tri -St at e Fi na nc ia l] is jud ic ia l l y es to pp ed fro m ha vi ng an y in te nt or po si ti on im pu te d up on it ot he r th an th e [$ 1,1 90 ,00 0.0 0] be lo ng [s ] to [Tri -St at e Fi na nc ia l]." S t a ln ak er an d Cen tri s al so arg ue d a "s weep in g rel eas e"
ex ecu te d in Aug us t 20 06 by al l bu t t w o m em be rs of th e Om ah a Gro up –J an dr ai n an d Rad io Eng in eeri ng In du st rie s, In c.– "i nc lu de s an y cl ai m ed ob li ga ti on of [Tri -St at e Fi na nc ia l] to tu rn ov er th e [$ 1,1 90 ,00 0.0 0] to [th os e pa rti es .] " Fi na ll y , St al na ke r an d Cen tri s arg ue d th e Om ah a Gro up "s ho ul d be es to pp ed fro m as se rti ng own ers hi p to th e [$ 1,1 90 ,00 0.0 0]." Bo th t h e ba nk ru pt cy co ur t's Feb ru ary 13 , 2 01 3 or de r an d i t s M ay 21 , 2 01 3 or de r are si le nt wit h
res pe ct to th es e arg um en ts

. W e co ul d, pe rh ap s, in te rp ret th e ba nk ru pt cy co ur t's si le nc e as an im

pl ic it reject io n of St al na ke r an d Cen tri s's arg um en ts an d ren de r an op in io n on th at ba si s. Howev er, we be li ev e th e be t t e r co ur se is to affo rd th e ba nk ru pt cy co ur t an op po rtu ni ty to co ns id er tho se arg um en ts , if it di d
no t in fact do so , an d ex pl ai n it s reas on in g fo r acce pt in g or reject in g t he m

.

St al na ker v. All is on (

In re Tr i-S ta te Fin an ci al

, LLC ), 51 2 B.R. 20 9, 21 1- 12 (B.A.P. 8t h Ci r. 20 14 ) (" St al na ker I "). W e th eref

or e r e v e r se d an d rem an de d th e m at te r fo r fu rth er p ro ceed in gs

. Id

. at 2 12

.

-1 0-On rem an d, th e ba nk ru pt cy co ur t reco ns id ered it s earl ie r ru li ng , an d on May 2 22 , 2 01 4, it en te red an or de r de te rm in in g t he $1 ,19 0,0 00 .00 was i n fa ct pr op ert y of th e ba nk ru pt c y e s t a te an d was su bjec t to Cen tri s's bl an ke t se cu rit y in te res t. The ba nk ru pt cy co ur t's or de r sp eci fic al ly le ft un affe ct ed it s May 21 , 20 13 or de r award in g St al na ke r $3 5,9 44 .45 fo r th e le ga l fees an d ex pe ns es th e ba nk ru pt cy es ta te in cu rred in li ti ga ti ng an d ev en tu al ly se tt li ng wit h Lov al d an d $6 1,8 86 .90 fo r th e at to rn ey fees , co st s, an d ex pe n s e s it in cu rred in th e ad ve rs ary pr oc eed in g an d su rch arg in g bo th

am ou nt s ag ai ns t t he $1 ,19 0,0 00 .00

.

On th at sa m e da te , th e ba nk ru pt cy co ur t en te red a jud gm en t in co rp or at in g th e te rm s of it s May 2 2 , 2 0 1 4 a n d M a y 21 , 20 13 or de rs

. Ja nd rai n, et al

. , REI, th e 3 Hoi ch es , and Am eri can Int ers ta te each ti m el y fil ed a no ti ce o f ap pe al

.

STANDARD OF REVIEW

W e rev ie w th e ba nk ru pt cy co ur t's fin di ng s o f fac t fo r cl ear e rro r an d i ts leg al

co nc lu si on s de no vo
. Is la mov v. Ung ar ( In re Ung ar ), 63 3 F.3 d 67 5, 67 8- 79 (8 th Ci r. 20 11 ).

DISCUSS ION

The pa rti es ag ai n id en ti fy a pl et ho ra of is su es th ey be li ev e are pr es en te d by th e
se ve ral ap pe al s. Tho se is su es m ay be co nd en se d an d res ta te d as fo ll ows : (1 ) whe th er th e ba nk ru pt cy co ur t ex ceed ed it s m an da te on rem an d; (2 ) whe th er th e ba nk ru pt cy
co ur t di sr eg ard ed th e la w of th e cas e; (3 ) whe th er th e ba nk ru pt cy co u r t f a i l e d to

In Ja nu ary 20 14 , whi le S t a l n a k e r I was st il l pe nd in g, th e ba nk ru pt cy jud ge 2
or ig in al ly as si gn ed to th is cas e ret ire d. In Feb ru ary 2 01 4, th e cas e wa s a s si gn ed to a d iff eren t ju dg e. Acco rd in g to th e jud gm en t, th e am ou nt s award ed were $3 5,9 44 .45 an d 3 $6 1,2 86 .90

. -1 1-co m

pl y wit h Fed .R.Ci v.P

. 63 an d Fed .R.Ban kr .P. 90 28 ; (4 ) whe th er the ba nk ru pt cy
co ur t erre d in co nc lu di ng th e $1 ,19 0,0 00 .00 was pr op ert y of th e ba nk ru pt cy es ta te ;
an d (5) whe th er th e ba nk ru pt cy co ur t erre d in su rch arg in g St al na ke r's at to rn ey fees , co st s, an d e xp en se s ag ai ns t t he $1 ,19 0,0 00 .00

.

W it h res pe ct to th e fir st is su e, Ja nd rai n, et al

. arg ue in reco ns id eri ng it s earl ie r
ru li ng th at th e $1 ,19 0,0 00 .00 was no t pr o p e r ty of th e es ta te , th e ba nk ru pt cy co ur t fai le d t o fo ll ow o ur m an da te on rem an d. We di sa gr ee.

The qu es ti on of whe th er th e ba nk ru pt cy co ur t ex ce ed ed ou r m an da te is a qu es ti on of la w an d is th us su bjec t to de no vo rev ie w. Gou rl ey v. Use ry ( In re Use ry ), 24 2 B.R. 45 0, 45 6 (B.A.P. 8t h Ci r. 19 99 ) (ci ta ti on th erei n) , af f'd 24 2 F .3d 37 8 (8 th Ci r. 20 00 ).

W he n a cas e ha s be en de ci de d

. . . on ap pe al an d rem an de d,

ev ery qu es ti o n d e ci de d by th e ap pe ll at e co ur t, whe th er exp re ss ly or by ne ces sa ry imp li ca ti on , is fin al ly se tt le d an d de te rm in ed , t h u s crea ti ng a m an da te fo r th e lo wer co ur t. The man d a te of th e ap pe ll at e co ur t is co m pl et el y co nt r o ll in g as to al l m at te rs wit hi n it s co m pa ss , bu t on re man d th e tr ia l co ur t is fr ee to pa ss up on an y is su e th at
wa s n ot exp re ss ly or

imp li ed ly di sp os ed

of on ap pe al

.

Id

. at 45 7 (ci ta ti on s om it te d) (fi rs t em ph as is in or ig in al ; rem ai ni ng em ph as is ad de d)

.

In St al na ker I

, we di d no t ad dr es s– m

uc h le ss ex pr es sl y or im

pl ie dl y di sp os e of –e it he r of th e is su es fram ed by th e pa rti es to th at ap pe al

. To th e co nt rary, we st at ed

un am bi gu ou sl y "an y co ns id erat io n of ei th er is su e is pr em at ur e." St al na ker , 51 2 B.R. at 21 1. Co ns eq ue nt ly, on rem an d, th e ba nk ru pt cy co ur t was free to pa ss up on th os e is su es

.

-1 2-W it h res pe ct to th e se co nd is su e, Ja n d r a i n , et al

. an d REI arg ue in

reco ns id eri ng it s earl ie r ru li ng th at th e $1 ,19 0,0 00 .00 was no t pr op ert y of th e es ta te , th e b an kr up tc y

co ur t d is reg ard ed th e la w of t he cas e. Agai n, we d is ag ree.

Und er th e la w-o f-t he -cas e do ct rin e, "wh en a co ur t de ci de s up on a ru le of la w, th at de ci si on sh ou ld co nt in ue to go ve rn th e sa m e is su es in su bs eq ue nt st ag es in th e
sa m e cas e." Alex an de r v. Jen se n- Ca rt er , 71 1 F.3 d 90 5, 90 9 (8 th Ci r. 20 13 ) (ci ta ti on s th erei n)

. The do ct rin e "ap pl ie s to bo th ap pe ll at e de ci si on s an d [tr ia l] co ur t de ci si on s th at ha ve no t b een ap pe al ed ." Id

. (ci ta ti on th erei n)

.

It is th is la tt er po in t th at pr ecl ud es ap pl ic at io n of th e la w-o f-t he -cas e do ct rin e in th is cas e. The ba nk ru pt cy co ur t's earl ie r de ci si on wa s ap pe al ed

. On rem an d, "[a ] lo wer co ur t is no t bo un d by it s own earl ie r r u l i n g s un le ss ex pl ic it ly or im pl ic it ly ad op te d by th e ap pe ll at e co ur t." Use ry , 24 2 B.R. a t 4 5 7 ( c i t a ti on s th erei n)

. In

rem an di ng th e m at te r, we di d no t ex pl ic it ly or im pl ic it ly ad op t an y of th e ba nk ru pt cy
co ur t's ru li ng s. Co ns eq ue nt ly, th e ba nk ru pt cy co ur t was no t bo un d b y i t s e a rli er
ru li ng s. And th is is so , ev en th ou gh th e cas e was tra ns ferr ed t o a di ffer en t jud ge
aro un d t he ti m e o f ou r rem an d. Id

. at n .7 (c it at io n t he rei n)

.

W it h res pe ct to th e th ird is su e, A m eri can In te rs ta te arg ue s fo ll owi ng th e
r e t i r e m en t of th e ba nk ru pt cy jud ge or ig in al ly as si gn ed to th is cas e, th e ba nk ru pt c y
co ur t d id no t co m

pl y wit h F ed .R.Ci v.P . 63 an d F ed .R.Ban kr .P. 90 28 . W e ag ree.

Pu rs ua nt to Ru le 63 ,

If a jud ge co nd uc ti n g a h e ari ng or tri al is un ab le to pr oc eed , an y ot he r jud ge m ay p r oc eed up on cert ifyin g fam il ia rit y wit h t h e r e co rd an d de te rm in in g th at th e cas e m ay be co m

pl et ed wit ho ut pr ejud ic e to th e pa r t i e s

. In a he ari n g o r a no nju ry tri al , th e su cces so r jud ge m us t, at a pa rty's req u e s t, reca ll an y wit ne ss who se te st im on y is
m at eri al an d di sp ut ed an d who is av ai la bl e to te st ify ag ai n
-1 3-wit ho ut un du e bu rd en

. Th e s uc ces so r jud ge m ay al so reca ll an y ot he r wit ne ss

.
Fed .R.Ci v.P . 63

. 4

In th is cas e, th e ba nk ru pt cy co ur t di d no t cert ify fam il ia rit y wit h th e reco rd an d de te rm in e th e cas e co ul d be co m pl et ed wit ho ut pr ejud ic e to th e pa rti e s b e f or e
en te rin g i t s jud gm en t. The ba nk ru pt cy co ur t's fam il ia rit y wit h th e reco rd is ab un d a n t ly de m on st rat ed by it s de ta il ed reci ta ti on of th e fact s in it s de ci si on

. Howev er, w i t h o u t t h e req ui si te cert ifi cat io n, th ere is no su gg es ti on th at th e pa rti es ha d an y reas on to be li ev e a d e ci si on was im m in en t an d th e ti m e wit hi n whi ch th ey
m ig ht ex erci se th ei r ri gh t u nd er Ru le 63 an d Rul e 9 02 8 t o a sk th e b an kr up tc y co ur t to reca ll wit ne ss es who se te st im on y was m at eri al an d di sp ut ed was pa ss in g. Und er 5 th e ci rcu m st an ces , we wil l rem an d th e m at te r to al lo w th e ba nk ru pt cy co ur t to co m pl y wit h R ul e 6 3 a nd Ru le 90 28

.

In reac hi ng th is co nc lu si on , we are m in df ul of th e op in io n of th e Eig ht h Ci rcu it Co ur t of App eal s in Hig

gi nb ot ha m v. Th e Co rn er St on e Ban k ( In re Hig gi nb ot ha m ), 91 7 F

. 2 d 1 1 3 0 (8 th Ci r. 19 90 ), in whi ch th e co ur t of ap pe al s reco gn iz ed th e po ss ib il it y th at a pa rty co ul d waiv e it s rig ht s un de r Ru le 90 28

. Howev er, in th at cas e, t h e co ur t of ap pe al s was co ns id eri ng an earl ie r ve rs io n of Ru le 90 28 th at di d n o t req ui re th e ba nk ru pt cy co ur t to cert ify fam il ia rit y wit h th e reco rd or affo rd th e pa rti es
an op po rtu ni ty t o as k th e ba nk ru pt cy co ur t to reca ll an y wit ne ss es

. Tha t earl ie r
ve rs io n, as qu ot ed by the co ur t o f ap pe al s, p ro vi de d:

Ru le 63 ap pl ie s i n b an kr up tc y cas es . Fed .R.Ban kr .P. 90 28

. 4
No ot he r pa rty to th is ap pe al res po nd ed to A mer i can In te rs ta te 's arg um en t 5 reg ard in g Ru le 63 an d Ru le 90 28

. In an y ev en t, th e reco rd in th is cas e is vo lu m in ou s, an d th e pa rti es co ul d reas on ab ly ha ve ex pe ct ed it wou ld ta ke so m e ti m e fo r th e ba nk ru pt cy

co ur t t o fa m il ia riz e it se lf wi th th e rec or d.
-1 4-If by re as on of de at h, si ck ne ss or ot he r di sa bi li t y, a jud ge be fo re w h o m an in vo lu nt ary pe ti ti on or an ad ve rs ary pr oc eed in g ha s be en tri ed or a he ari ng co nd uc te d is un ab le to pe rfo rm th e du ti es to b e p e rfo rm ed by th e co ur t un de r t h e s e ru le s aft er a ve rd ic t is ret ur ne d, or fin di ng s of fa c t
an d co nc lu si on s of la w or a m em or an du m is fil ed , th en an y ot he r jud ge reg ul arl y si tt in g in or as si gn ed to th e co ur t in whi ch th e t r ia l or he ari ng was co nd uc te d m ay pe rfo rm th os e du ti es ; bu t if th e ot he r jud ge is sa t i s f i ed th at he
can no t p erfo rm th os e du ti es be cau se he di d n ot pre si de or fo r an y ot he r reas on , h e m ay in hi s d is cret io n g ran t a n ew tri al

.

Id

. at 1 13 1- 32 (wit ho ut em ph as is in ori gi na l).

Mo reo ve r, in th at cas e, t h e pa rty co m pl ai ni ng ab ou t th e ba nk ru pt cy co ur t's fai lu re to co m

pl y wit h Ru le 9 02 8 ha d so ug ht affi rm at iv e rel ie f fro m th e su cces so r jud ge , th ereb y de m on st rat in g, at le as t im pl ic it ly, "a wil li ng ne ss to acce pt th at jud ge 's

au th or it y to de ci de th e cas e." Id

. at 11 33

. In th is cas e, Cen tri s fil ed a m ot io n as ki ng th e ba nk ru pt cy co ur t to acce pt br ie f s su m m ari zi ng th e pa rti es ' res pe ct iv e po si ti on s reg ard in g th e is su es of es to pp el an d rele as e di sc us se d in St al na ker I . Thu s, Ce nt ris

m ig ht be sa id to ha ve im

pl ic it ly de m on st rat ed a wil li ng ne ss to acce pt th e ba nk ru pt cy
co ur t's au th or it y to de ci de th e cas e on th e reco rd it in he rit ed

. Howev er, th e sa m e
can no t b e sa id ab ou t Am eri can Int ers ta te or a ny of th e o th er p art ie s.

W e are als o m in df

ul of t he op in io n o f th e Eig ht h C irc ui t Co ur t o f App eal s i n Li tt le to n v. Pil ot Tr av el Cen te rs , LLC , 56 8 F.3 d 64 1 ( 8 t h C i r

. 2 00 9) , in whi ch th e
co ur t of a p p e a l s s t a t e d a pa rty who do es no t m ak e a Ru le 63 req ue st to reca ll wit ne ss es "h as no rig ht to si t ba ck an d awai t de ci si on of th e cas e be fo re ob jecti ng to th e pr oc ed ur e." Id

. at 64 8 (q uo ti ng Hig gi nb ot ha m , 91 7 F.2 d at 11 33 ). Howev er, we
can no t te ll fro m th at op in io n whe th er th e su cces so r jud ge in t h a t c a s e made th e req ui si te cert ifi cat io n.

-1 5-In an y ev en t, in th is cas e, Am eri can In te rs ta te can no t be sa id to ha ve sa t ba ck

an d a w a i te d a de ci si on be fo re ob jecti ng to th e pr oc ed ur e, be cau se , as no te d ab ov e, th ere is no su gg es ti on th e pa rti es ha d an y reas on to be li ev e a de ci si on was im m in en t. The re is li ke wis e no su g g e st io n th ere was an y "p ro ced ur e" to whi ch Am eri can In te rs ta te m ig ht ha ve ob

je ct ed

. The ba nk ru pt cy co ur t si m pl y en te red it s jud gm en t, at whi ch po in t i t was to o l at e fo r Am eri can Int ers ta te –o r an y ot he r pa rty–t o o bjec t.

In li gh t of ou r de ci si on to rem an d th is m at te r, we do no t reac h th e rem ai ni ng is su es

. W e are no t ex pr es sl y or im pl ie dl y di sp os in g of th os e rem ai ni ng is su es , a nd

on rem an d th e ba nk ru pt cy co ur t is ag ai n free to pa ss up on th em

. Lik ewis e, we are no t

ex pl ic it ly or im

pl ic it ly ad op ti ng an y of th e ba nk ru pt cy co ur t's ru li ng s reg ard in g th os e
rem ai ni ng is su es , an d on rem an d th e ba nk ru pt cy co ur t is st il l no t bo un d by it s earl ie r
ru li ng s re ga rd in g t he m

.

CONCLUSION

Fo r th e fo reg oi ng reas on s, we ag ai n rev ers e an d rem an d fo r fu rth er pr oc ee din gs
co ns is te nt wit h t hi s o pi ni on

.

-1 6-