Opinion ID: 1190341
Heading Depth: 2
Heading Rank: 2

Heading: Appealability of Confirmation Denial

Text: Zahn argues Eighth Circuit case law allows a review of her original plan as part of an appeal of the order confirming her second amended plan despite the fact the bankruptcy court approved a plan she proposed. Zahn cites to Lewis v. United States Farmers Home Admin., 992 F.2d 767, 773 (8th Cir.1993) where this court explained: [after final confirmation or a dismissal,] [e]ither party may then appeal from the final disposition of the bankruptcy proceeding and obtain effective, timely resolution of this case. (citations omitted). Zahn also cites In re Pleasant Woods Assoc. Ltd. P'ship, 2 F.3d 837, 838 (8th Cir. 1993), where the court stated, the rejection of debtor's proposed plan may yet be considered on appeal from a final judgment either confirming an alternative plan, or dismissing the underlying petition or proceeding. (citations and alteration omitted). The BAP stated this language was dicta and contrary to law. We disagree. Whether or not the language of these cases is dicta, we cannot ignore the fact that the statements made by this court in Lewis and In re Pleasant Woods emanate from the principle that confirmation of a plan generally acts as a final order and this court has jurisdiction over final orders, including the events and rulings leading to a final order. In this case, it is undisputed (1) the confirmation order leaves the bankruptcy court nothing to do but execute the order, and (2) a delay of review could prevent the debtor from obtaining relief. [1] Therefore, confirmation of Zahn's plan is a final order and it is appealable. See 28 U.S.C. § 158(a)(1) and (d); In re Farmland, 397 F.3d at 650 (stating, an order entered before the conclusion of a complex bankruptcy case is not appealable . . . unless it finally resolves a discrete segment of that proceeding, that is, a relevant judicial unit of the proceeding. To decide that pragmatic question, we examine three factors, the extent to which (1) the order leaves the bankruptcy court nothing to do but to execute the order; (2) the extent to which delay in obtaining review would prevent the aggrieved party from obtaining effective relief; [and] (3) the extent to which a later reversal on that issue would require recommencement of the entire proceeding.) (internal quotations and citations omitted); see also In re Broken Bow Ranch, 33 F.3d 1005, 1008 (8th Cir.1994) (concluding an order [denying confirmation] is interlocutoryuntil either a modified plan is confirmed, or the bankruptcy case is dismissed . . . .) (citation omitted). Not to allow a debtor to appeal confirmation of her own plan would require a debtor to comply with a plan that contains provisions the debtor does not believe are required by the Bankruptcy Code, while losing her right to appeal those provisions. In this case, the pre-confirmation requirement by the bankruptcy court to include the IRA distributions received by the non-filing spouse as part of Zahn's income is an issue strongly disputed by Zahn because she believes the Bankruptcy Code does not mandate such inclusion. Zahn's confirmed amended plan may be contrary to bankruptcy law and should be subject to appellate review. Concerned that orders denying confirmation never receive appellate review because they are not considered final orders, the BAP invites us to revisit the current state of the law in this circuit regarding the finality of such orders. We decline the BAP's invitation. Under Eighth Circuit law, which is consistent with the views of other circuits, an order denying confirmation of a plan, which does not dismiss the case, is not a final order and cannot be appealed. See Lewis, 992 F.2d at 772 (holding a bankruptcy order, which neither confirms a plan nor dismisses the underlying petition, is not final); see also In re Groves, 39 F.3d 212, 214 (8th Cir.1994); and In re Pleasant Woods, 2 F.3d at 838; see also, for example, In re Watson, 403 F.3d 1, 4-5 (1st Cir.2005); In re Massey, 21 Fed.Appx. 113, 114 (4th Cir.2001); and In re Lievsay, 118 F.3d 661, 662-63 (9th Cir.1997). Such orders leave the way open for negotiations and approval of a modified plan. Because a debtor can obtain meaningful relief either by amending her plan or, as in this case, objecting to her own amended plan and appealing the amended plan's confirmation, we do not see the need to alter our precedent that an order denying confirmation, without dismissal of the case, is not an appealable final order.