Opinion ID: 2383772
Heading Depth: 2
Heading Rank: 1

Heading: The Foreclosure

Text: On August 16, 2002, the Bankruptcy Court dismissed appellant's bankruptcy petition with prejudice. While dismissals with prejudice are not typical, the bankruptcy court acted well within its authority in doing so. See 11 U.S.C. 349(a) (2000); In re Hall, 304 F.3d 743, 746-747 (7th Cir.2002); see also 1 COLLIER BANKRUPTCY MANUAL § 349.02[2] (3d rev. ed.1998). The order dismissing appellant's petition was the functional equivalent of a final decision on the merits, thus effectively closing her case. Such a dismissal is a final judgment with the preclusive effect of res judicata not only as to all matters litigated and decided by it, but as to all relevant issues which could have been but were not raised and litigated in the suit. Heiser v. Woodruff, 327 U.S. 726, 735, 66 S.Ct. 853, 90 L.Ed. 970 (1946); see also Speleos v. McCarthy, 201 B.R. 325, 329 (D.D.C.1996) (it is axiomatic that a final order ... binds the parties to the case beyond the close of proceedings). The finality of the bankruptcy court's order could be altered only if that order were reversed on appeal. See Jordan v. Washington Metropolitan Area Transit Authority, 548 A.2d 792, 795 n. 4 (D.C.1988); Adams v. Jonathan Woodner Co., 475 A.2d 393, 397 (D.C.1984). That never happened; on the contrary, the appeal was dismissed. Accordingly, even if Norwest was aware that appellant was appealing to the District Court, it was entitled to foreclose on the property after the bankruptcy court dismissed her petition with prejudice. See In re Casse, 198 F.3d 327, 334-339 (2d Cir.1999) (after debtor defaulted on a mortgage, creditor was held to have properly foreclosed on property, despite a series of filings by the debtor in bankruptcy court to prevent foreclosure); see also Jordan, 548 A.2d at 795 n. 4 (the pendency of an appeal does not alter the effect of the judgment or order from which the appeal is taken). Furthermore, as the trial court correctly noted, appellant had an opportunity to file a motion for an emergency stay with the bankruptcy court while her appeal was pending. See FED. BANKR. R. 8005. She also could have sought the protection of a temporary restraining order or a preliminary injunction to prevent Norwest's foreclosure. See FED. BANKR. R. 7065. Because appellant failed to do any of these things, we find no impropriety in Norwest's foreclosure.