2009 D e c i sion s O p inion s of the U nit e d S t at e s C our t of Appe al s for the Thir d C ir c uit 6-23-2009 

# In Re: M ark S n

yde r , P r e c e de nt i al or N on-P r e c e de nt i al : N on-P r e c e de nt i al D ocke t N o . 08-2684

F o llow thi s and a dd it ion al work s at : http://d i git alc ommon s .l a w . vi ll anova . e du/thir dc ir c uit_2009

Thi s de c i sion i s br ou ght t o you for f r e e and ope n a c c e s s b y the O p inion s of the U nit e d S t at e s C our t of Appe al s for the Thir d C ir c uit at V i ll anova U nive r sity S choo l of L a

w Di git al Reposit ory

. It h as be e n a c c ept e d for inclusion in 2009 D e c i sion s b y an author i z e d a dmini s tr at or of V i ll anova U nive r sity S choo l of L a

w Di git al Reposit ory

. F or mor e inform at ion, p le as e c ont a ct Be n j amin . C arl s on@l a

w . vi ll anova . e du . Re c omme nde d C it at ion
" In Re: M ark S n

yde r , " (2009). 2009 D e cisio n s . P ape r 1152. http://d i git alc ommon s .l a

w . vi ll anova . e du/thir dc ir c uit_2009/1152B L D - 180 NOT P RE CE DE NT I AL UN I TED STATES CO UR T OF A PP EALS F O R T H E T H IR D C IR C U IT

___________ N o. 08- 2684

___________ I N R E : M A R K SN Y D E R , D ebt or M ARK SNYDER,

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v . EDW AR D J . QU I NLA N; BRA ND ON R. BLA KE; RJ B PROPERTI ES GRO UP, I NC . ; RI CH AR D J . BA ND EL; A R B O R S M A N A G E M E N T , IN C .; P A P E R N IC K & G H E F S K Y , P .C .; RO BE RT L . M UR P HY

____________________________________ O n A p p ea l from the U n it ed S tat es D istri ct C o u rt f o r th e W e ste rn D istric t o f P e n n sy lv a n ia ( W . D . Pa. C i vi l N o. 07- cv- 01281) D i stri ctJudg e: H on orabl e D on et t a W . A m brose

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o rP o s s i b l e Di s mi s s a l P u r s u a n tt o 2 8 U. S . C. § 1 9 1 5 ( e ) ( 2 ) ( B) o r S u m m a ry A c tio n P u rs u a n t to T h ir d C ir c u it L A R 2 7 .4 a n d I.O .P . 1 0 .6 M ay14, 2009 B efore: M cK E E , F ISH E R and C H A G A R E S , C i rcui tJudg es.

( Fi l ed: J une 23, 2009)

_________ OP I NI ON

_________ P E R C UR I AM2

M ark Sny der , pr ocee di ng pr o s e, appea l s an or derof the U ni t ed St at es D i s t r i ct C our tfort he W es t ern D i s t r i ctof Penns y l vani a af fi r m i ng a U ni t ed St at es B ankrupt cy C our tor dergr ant i ng A ppel l ees ’ m ot i on t o di s m i s s an adve r s arypr ocee di ng, and deny i ng S n y d er’s m o ti o n to rec o n side r an o rde r de n y ing h is r eq u est t o rem an d the a d v ersa ry p roc ee d ing to state co u rt . W e w il l sum m aril yaf firm the D istri ct C o u rt ’s ord er. S n y d e r a n d h is s ib lin g s b e c a m e in d e b ted to A p p e llee E d w a rd Q u in lan p u rsu a n t to t he t erm s of tw o not es , w hi ch w er e s ecur ed bym or t gages on m ot el pr oper t i es ow ned by S n y d e r a n d m e m b e rs o f h is f a m ily . In a d d iti o n , S n y d e r m a n a g e d a n d w a s th e so le
m em b er o f A ll eg h en yR em o d eli n g , L L C , w h ich b ec am e ind eb ted to A p p ell ee R icha rd B a n d e l . T h i s o b l i g a t i o n w a s s e c u r e d w i t h a m o rt g a g e o n a n a p a r t m e n tp r o p e r t y. I n 2003, Sny der , hi s s i bl i ngs , and A l l eghenyR emodel i ng defa ul t ed on the
m or t gages , and for ecl os ur e pr ocee di ngs w er e i ni t i at ed i n s t at e courton t he mot el and
a p a rtm e n t p ro p e rties . D e f a u lt j u d g m e n ts w e re e n ter e d in f a v o r o f Q u in lan a n d B a n d e l in the f o rec losu re p roc ee d ing s. S h o rt lyb ef o re the d ef

au ltjud g m en ts w ere en tered , h o w ev er, S n y d er a n d h is fam il ym em b ers b eg an to f il e b an k rup tcyp eti ti o n s. T h e B an k rup tcyC o u rt grant ed in r em rel i ef from t he au t om at i c st ayi n tw o o f t he S ny der fam i l ym em bers’ b an k rup tcyca ses in o rde r t o all o w Q u inlan an d B an d el t o co m p let e the fo rec losu re pr ocee di ngs . T he apa r t m entpr oper t yw as s ol d i n 2004 vi a Sher i ff’ s s al e t o B andel , w ho
a ss ig n e d h is b id to R JB P ro p e rties G ro u p , In c . T h e m o tel p ro p e rties w e re so ld v ia Sher i ff’ s s al e t o E dw ar d and R os e Q ui nl an i n J anuary2005.B r andon B l ake w as appar ent l ym i s t akenl yl i s t ed as the gr ant ee on the dee d fort he 1 a p a r t m e n tp r o p e r t y d u e t o a c l e r i c a l e r r o r . B l a k e w a s l a t e rd i s m i s s e d a s a p a r t y. A lle g h e n yR e m o d e lin g w a s d is m is s e d a s a p a rt yf o r f a ilu re to o b ta in c o u n s e l. 2 Sny deral s o named addi t i onal defe ndant s i n hi s amended compl ai ntw ho w er e di s m i s s ed beca us e Sny derdi d nothave the perm i s s i on of the courtt o add new part i es t o hi s act i on. 3 In O c to b e r 2 0 0 5 , S n y d e r a n d A lleg h e n yR e m o d e lin g f iled a c o m p lain t in Penns y l vani a s t at e courtagai ns tQ ui nl an, R J B Pr oper t i es , and B r andon B l ake s eeki ng qui ett i t l e t o t he apa r t m entand mot el pr oper t i es , canc el l at i on of the mort gages and Sher i ff’ s deeds , and monet arydamages forbr eac h of contr act , unj us tenr i chment , fr aud,
co n v ersion , an d rep levin . Q u inlan , B lake , an d R JB P rop erti es m o v ed to reo p en S n y d er’s b a n k ru p tcy ca se , w h ich h a d b e e n d ism iss e d , an d f iled a n o tice o f

re m o v a l o f

th e sta te cour tact i on w i t h t he B ankrupt cyC our t . T he B ankrupt cyC our tvaca t ed i t s di s m i s s al of 1 S n y d e r’s b a n k ru p tcy ca se , an d c re a ted a n a d v e rsa ryp ro c e e d in g f o r th e re m o v e d sta te c o u rt a c tio n . T h e B a n k ru p tcy C o u rt a lso g ra n ted S n y d e r’s m o tio n to a m e n d h is
c o m p lain t. I n M ay2006, Sny derfi l ed an a m ended c om pl ai ntas s ert i ng cl ai m s foracc ount i ng, r epl evi n, conver s i on, and vi ol at i ons of the Landl or d T enantA ctw i t h r es pectt o t he t aki ng of hi s per s onal pr oper t yatt he apa r t m entpr oper t y , w her e he ha d r es i ded. A ta J une 2, 2 2006, hear i ng i n B ankrupt cyC our t , Sny derconce ded thathe ow ned ce r t ai n t ool s and b u ild in g m a ter ials in th e a p a rtm e n t p ro p e rty , b u t sta ted th a t h is m o th e r, w h o w a s n o t a p artyto the ac ti o n , o w n ed the o ther p erso n al pro p ertythere . B ase d o n S n y d er’s
a d m iss io n , o n A u g u st 6 , 2 0 0 7 , the B a n k ru p tcy C o u rt g ra n ted A p p e llee s’ m o tio n to4

di s m i s s t he adve r s arycas e and de ni ed Sny der ’ s r eques tt o r econs i deran ea r l i eror der d e n y in g a re m a n d o f

th e a d v e rsa ryp ro c e e d in g to sta te c o u rt. R e g a rd in g S n y d e r’s to o ls and bui l di ng m at er i al s , t he B ankrupt cyC our tnot ed thatSny derdi d notpr oduce e vi dence th a t h is p e rso n a l p ro p e rtyw a s o n th e p ro p e rty , an d th a t, t o th e e x ten t th a t su c h p ro p e rty exi s t ed, i tw as w i t houtval ue. Sny derappea l ed. T h e D istri ct C o u rtrejected S n y d er’s p ri n cipa l argu m en t th at th e B an k rup tcyC o u rt l acke d s ubj ectm at t erj ur i s di ct i on overthe adve r s arypr ocee di ng beca us e hi s bankrupt cy cas e had be en di s m i s s ed. T he D i s t r i ctC our texpl ai ned that , w hi l e the di s m i s s al of a ban kruptcyproceed i ng no rm al l yres ult s i n the di sm i ssal of rel at ed p roceedings, j ur i s di ct i on i s pr emi s ed on the nexus betw een the bankrupt cycas e and the r el at ed p ro p e rty . T h e D istric t C o u rt c o n c lu d e d th a t re o p e n in g w a s p ro p e r a n d th a t th e re q u isite
nexus exi s t ed gi ven thatt he B ankrupt cyJ udge had pr evi ous l ygr ant ed i n r em re l i ef t o the A p p ell ee s as to the p rop erti es a t i ssu e in S n y d er’s state co u rtac ti o n . T h e D istri ct C o u rt al s o s t at ed thatt he B ankrupt cyJ udge w ant ed t o ens ur e thatSny derr ecove r ed hi s per s onal pr oper t yand thatt he es t at e r et ai ned i t s pr oper t y . T he D i s t r i ctC our tnot ed thatthe B ankrupt cyJ udge r evi ew ed the mort gage Sny derhad s i gned, w hi ch gave r i s e t o t he f o r e c l o s u r e o f

t h e a p a r t m e n tp r o p e r ty. W e agr ee thatt he B ankrupt cyC our tpr oper l yexer ci s ed j ur i s di ct i on overthe adver s arypr ocee di ng. A tt he J une 2, 2006, hear i ng, the B ankrupt cyJ udge r ecogni zed the l i m i t ed bankrupt cypurpos e of the pr ocee di ngs befor e her , not i ng thatSny derhad not5

f iled a C h a p ter 1 3 p lan a n d w a s u n a b le to m a k e p lan p a ym e n ts. T h e B a n k ru p tcy C o u rt, h o w e v e r, ex p lain e d th a t itw a s th e o n lyc o u rt th a t co u ld d e ter m in e w h a t p e rso n a lty bel onged t o Sny derbeca us e thatdeci s i on w oul d det erm i ne w hatper s onal t yw as the p r o p e r t y o f

t h e e s t a t e , a c o r e m a t t e ri n th e b a n k ru p t c y. W e al s o agr ee w i t h t he D i s t r i ctC our tthat , t o t he ext entSny derchal l enges the B ankrupt cyC our t ’ s fac tual fi ndi ngs r egar di ng the i t ems he s oughtt o r epl evyfr om the apart m entpr oper t y , he di d nots how thatthos e fi ndi ngs w er e cl ear l yerr oneous . T he
re c o rd re f

lec ts S n y d e r’s a d m iss io n th a t th e p e rso n a ltyo n th e p ro p e rty , o th e r th a n c e rta in too ls an d m aterial s, b elon g ed to h is m o ther. F inally , w e d isag ree w ith S n y d er’s co n tention in D istri ct C o u rtthat the B an k rup tcyC o u rterred in d ism issi n g h is L an d lord T enantA ctcl ai m s . T he B ankrupt cyC our tcons t rued Sny der ’ s Fi r s tA m ended Com pl ai nt as s eeki ng r epl evi n of per s onal pr oper t yforvi ol at i ons of the A ct , and corr ect l ydi s m i s s ed h i s c l a i m b a s e d o n h i s c o n c e s s i o n r e g a r d i n g th e o w n e r s h i p o f th e p r o p e r t y. B ec au se th is ap p ea l do es n o t r aise a su b stan ti al qu esti o n , w e w il l sum m aryaf firm the D istri ct C o u rt ’s ord er.