Court Opinion

ID: 9688757
Source: CourtListenerOpinion
Date Created: 2023-08-24 18:03:14.723504+00
Date Added: 2024-06-11T18:18:41.899202
License: Public Domain

KLEIN, Bankruptcy Judge,
Dissenting.
While I have no particular quarrel with the majority’s analysis of whether this situation is closer to Bateman or Speiser, Krause, I come to the opposite conclusion primarily because there is an extra dimension to “excusable neglect” analysis in bankruptcy appeals that warrants caution when applying “excusable neglect” analysis from other contexts.
I would vacate and remand with instructions for the bankruptcy court to apply the Pioneer excusable neglect analysis through the prism of the differences between Federal Rule of Appellate Procedure 4(a) and Federal Rule of Bankruptcy Procedure 8002.
When those two rules are compared, it becomes apparent that the time for filing an appeal — 10 calendar days, subject to a 20-day extension for excusable neglect — is an inflexible trap for the unwary that, in the interests of justice, warrants a generous construction of excusable neglect.
Under Appellate Rule 4(a)(1), a litigant in district court has 30 days in which to file a notice of appeal. Under Bankruptcy Rule 8002(a), a bankruptcy litigant has 10 days. Moreover, 10 days in bankruptcy means 10 calendar days. Fed. R. Bankr.P. 9006(a).'
In contrast, in general federal practice in the district courts, 10 days means 10 non-holiday weekdays, which is never less than 14 calendar days. Fed.R.Civ.P. 6(a); Fed.R.Crim.P. 45(a).
Under Appellate Rule 4(a)(5), the initial 30 days may be extended an additional 30 days in a motion made after expiration of the deadline upon a showing of either “excusable neglect” or “good cause.” Fed. R.App. P. 5(A); accord, Fed. R.App. P. 4(b)(4) (criminal appeals).
In contrast, under Bankruptcy Rule 8002(c)(2), the initial 10 days can be extended for 20 days in a motion made after expiration of the deadline only upon a showing of “excusable neglect”; “good cause” will not suffice. Fed. R. Bankr.P. 8002(c)(2).
Moreover, although not relevant to this appeal, six categories of bankruptcy appeals are ineligible for any extension. Fed. R. Bankr.P. 8002(c)(1).
Under Appellate Rule 4(a)(6), a party that did not receive notice of entry of the judgment is permitted an additional 14 days in which to file a notice of appeal within 180 days after entry of judgment so long as no party would be prejudiced. Fed. R.App. P. 4(a)(6). There is no bankruptcy analog.
It is difficult to justify many of these differences between the Bankruptcy Rules and the Civil and Criminal Rules for the garden-variety appeal. In view of the long time it generally takes to resolve bankruptcy appeals, these differences expose the Bankruptcy Rules to the criticism that they serve primarily as a barrier to entry to keep otherwise competent federal litigators out of the bankruptcy courts.
If I were writing the rules, I would not exclude “good cause” as a basis (in addition to “excusable neglect”) for extension of time because I cannot differentiate between the garden-variety bankruptcy appeal and the garden-variety district court appeal.
Since we must apply the existing rules as written, the only hope of promoting just results lies in the recognition that what constitutes “excusable neglect” is relative and contextual. The several divided decisions of the Ninth Circuit going different directions that are cited by the majority, *189as well as the 5-4 Supreme Court decision in Pioneer, bespeak the need for the exercise of sound judgment.
For those who analogize judges to baseball umpires, I submit that the differences between the Appellate and Bankruptcy Rules require the bankruptcy judge to use a bigger strike zone for Bankruptcy Rule 8002(c) “excusable neglect” than the district judge, who also has the latitude of “good cause,” needs for Appellate Rule 4(a)(5)(A)(ii) [or 4(b)(4) ] “excusable neglect.”
Under the facts of this appeal, the notice of entry of judgment was sent to appellant at a different address than all of the other notices that had been sent to her. The appellant had filed her objection to the form of the trustee’s order on May 4, 2001, yet the bankruptcy judge inexplicably did not act on the disputed form of the order until July 10, 2001. The bank’s assertion of prejudice — that the passage of time has made some receivables more difficult to collect — is vulnerable to the counter-argument that the bank knew of the pendency of this appeal from the outset, at a time that it could have better protected its interest with respect to the receivables. The ease trustee has not even participated in this appeal.
These factors are enough to be in the vicinity of the Bankruptcy Rule 8002(c) “excusable neglect” strike zone, warranting a closer look by the bankruptcy judge. Accordingly, I DISSENT.