JIM SLEMONS HAWAII, INC. v. CONTINENTAL INVESTMENT COMPANY, LTD ( 2014 )


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  •                                                                            FILED
    +CORRECTED                                  AUG 25 2014
    NOT FOR PUBLICATION                          MOLLY C. DWYER, CLERK
    U.S. COURT OF APPEALS
    UNITED STATES COURT OF APPEALS
    FOR THE NINTH CIRCUIT
    In re: JIM SLEMONS HAWAII, INC.,                 No. 13-60033
    Debtor,                            BAP No. 11-1464
    JIM SLEMONS HAWAII, INC.,                        MEMORANDUM*
    Appellant,
    v.
    CONTINENTAL INVESTMENT
    COMPANY, LTD; et al.,
    Appellees.
    In re: JIM SLEMONS HAWAII, INC.,                 No. 13-60034
    Debtor,                            BAP No. 11-1468
    JIM SLEMONS HAWAII, INC.,
    Appellant,
    v.
    *
    This disposition is not appropriate for publication and is not precedent
    except as provided by 9th Cir. R. 36-3.
    Page 2 of 6
    CONTINENTAL INVESTMENT
    COMPANY, LTD; et al.,
    Appellees.
    In re: JIM SLEMONS HAWAII, INC.,   No. 13-60035
    Debtor,                  BAP No. 11-1475
    JIM SLEMONS HAWAII, INC.,
    Appellant,
    v.
    CONTINENTAL INVESTMENT
    COMPANY, LTD,
    Appellee.
    In re: JIM SLEMONS HAWAII, INC.,   No. 13-60040
    Debtor,                  BAP No. 11-1464
    CONTINENTAL INVESTMENT
    COMPANY, LTD,
    Appellant,
    v.
    Page 3 of 6
    JIM SLEMONS HAWAII, INC.,
    Appellee,
    UST - UNITED STATES TRUSTEE,
    HONOLULU; et al.,
    Interested Parties.
    In re: JIM SLEMONS HAWAII, INC.,   No. 13-60041
    Debtor,                  BAP No. 11-1468
    CONTINENTAL INVESTMENT
    COMPANY, LTD,
    Appellant,
    v.
    JIM SLEMONS HAWAII, INC.,
    Appellee,
    UST - UNITED STATES TRUSTEE,
    HONOLULU; et al.,
    Interested Parties.
    In re: JIM SLEMONS HAWAII, INC.,   No. 13-60042
    Debtor,                  BAP No. 11-1475
    Page 4 of 6
    CONTINENTAL INVESTMENT
    COMPANY, LTD,
    Appellant,
    v.
    JIM SLEMONS HAWAII, INC.,
    Appellee.
    Appeals from the Ninth Circuit
    Bankruptcy Appellate Panel
    Markell, Jury, and Taylor, Bankruptcy Judges, Presiding
    +Submitted June 20, 2014**
    San Francisco, California
    Before: KOZINSKI, Chief Judge, and FISHER and WATFORD, Circuit Judges.
    1. The bankruptcy court did not abuse its discretion by denying debtor’s
    second motion to recuse Judge Faris. No reasonable person could conclude, based
    on this record, that Judge Faris’s impartiality might be questioned. See In re Focus
    Media, 
    378 F.3d 916
    , 929–30 (9th Cir. 2004). Even assuming the November 9,
    2009, order Judge Faris entered differed from his oral ruling, debtor has failed to
    show why such a discrepancy would demonstrate impermissible bias requiring
    **
    The panel unanimously concludes this case is suitable for decision
    without oral argument. See Fed. R. App. P. 34(a)(2).
    Page 5 of 6
    recusal, rather than merely providing “grounds for appeal.” Liteky v. United States,
    
    510 U.S. 540
    , 555 (1994). The local rules at the time did not require signatures
    from either the United States Trustee or debtor, and Judge Faris provided ample
    time for the parties to review the proposed order. Debtor could have commented
    on the proposed order prior to entry, or appealed the order before it became final.
    That debtor failed to take basic, necessary steps to address what it believed to be an
    erroneous order does not in any way cast doubt upon Judge Faris’s impartiality.
    2. The bankruptcy court did not abuse its discretion by denying debtor’s
    motion to reopen. Debtor provided no legal or factual basis for reopening the
    proceeding. The “facts” that debtor relied on were unrelated to the merits of the
    second recusal motion, and the vague assertion of “new matters” did not warrant
    reopening the matter.
    3. We decline to exercise jurisdiction over Continental’s cross-appeal of the
    recusal order. “Ordinarily, only a party aggrieved by a judgment or order of a
    [lower] court may exercise the statutory right to appeal therefrom.” Deposit Guar.
    Nat’l Bank v. Roper, 
    445 U.S. 326
    , 333 (1980). Subject to certain prudential
    exceptions, a party which has prevailed before the lower court is not considered
    aggrieved. See Envtl. Prot. Info. Ctr., Inc. v. Pac. Lumber Co., 
    257 F.3d 1071
    ,
    1075 (9th Cir. 2001). Continental prevailed below and does not even attempt to
    Page 6 of 6
    explain how this case falls within a prudential exception to our general rule.
    Because Continental was not aggrieved by the bankruptcy court’s denial of
    debtor’s second motion to recuse, it may not challenge that order’s factual findings
    on appeal.
    4. Each party shall bear its own costs on appeal.
    AFFIRMED.