Ritzen Group, Inc. v. Jackson Masonry, LLC , 205 L. Ed. 2d 419 ( 2020 )


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  • (Slip Opinion)              OCTOBER TERM, 2019                                       1
    Syllabus
    NOTE: Where it is feasible, a syllabus (headnote) will be released, as is
    being done in connection with this case, at the time the opinion is issued.
    The syllabus constitutes no part of the opinion of the Court but has been
    prepared by the Reporter of Decisions for the convenience of the reader.
    See United States v. Detroit Timber & Lumber Co., 
    200 U.S. 321
    , 337.
    SUPREME COURT OF THE UNITED STATES
    Syllabus
    RITZEN GROUP, INC. v. JACKSON MASONRY, LLC
    CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR
    THE SIXTH CIRCUIT
    No. 18–938.      Argued November 13, 2019—Decided January 14, 2020
    An appeal of right lies from “final judgments, orders, and decrees” en-
    tered by bankruptcy courts “in cases and proceedings.” 
    28 U.S. C
    .
    §158(a). Bankruptcy court orders are considered final and immedi-
    ately appealable if they “dispose of discrete disputes within the larger
    [bankruptcy] case.” Bullard v. Blue Hills, 
    575 U.S. 496
    , 501.
    Ritzen Group, Inc. (Ritzen) sued Jackson Masonry, LLC (Jackson)
    in Tennessee state court for breach of a land-sale contract. Jackson
    filed for bankruptcy under Chapter 11 of the Bankruptcy Code. The
    state-court litigation was put on hold by operation of 
    11 U.S. C
    .
    §362(a), which provides that filing a bankruptcy petition automatically
    “operates as a stay” of creditors’ debt-collection efforts outside the um-
    brella of the bankruptcy case. The Bankruptcy Court denied Ritzen’s
    motion for relief from the automatic stay filed pursuant to §362(d).
    Ritzen did not appeal that disposition. Instead, its next step was to
    file a proof of claim against the bankruptcy estate. The Bankruptcy
    Court subsequently disallowed Ritzen’s claim and confirmed Jackson’s
    plan of reorganization. Ritzen then filed a notice of appeal in the Dis-
    trict Court, challenging the Bankruptcy Court’s order denying relief
    from the automatic stay. The District Court rejected Ritzen’s appeal
    as untimely under 
    28 U.S. C
    . §158(c)(2) and Federal Rule of Bank-
    ruptcy Procedure 8002(a), which require appeals from a bankruptcy
    court order to be filed “within 14 days after entry of [that] order.” The
    Sixth Circuit affirmed, concluding that the order denying Ritzen’s mo-
    tion to lift the stay was final under §158(a), and that the 14-day appeal
    clock therefore ran from entry of that order.
    Held: A bankruptcy court’s order unreservedly denying relief from the
    automatic stay constitutes a final, immediately appealable order un-
    der §158(a). Pp. 6–12.
    2         RITZEN GROUP, INC. v. JACKSON MASONRY, LLC
    Syllabus
    (a) This Court’s application of §158(a)’s finality requirement is
    guided by the opinion in Bullard v. Blue Hills Bank, 
    575 U.S. 496
    .
    Addressing repayment plan confirmations under Chapter 13, the
    Court held in Bullard that a bankruptcy court’s order rejecting a pro-
    posed plan was not final because it did not conclusively resolve the
    relevant “proceeding.” Rather, the proceeding would continue until
    approval of a plan. 
    Id., at 502.
    P. 6.
    (b) In applying Bullard’s analysis here, the key inquiry is “how to
    define the immediately appealable ‘proceeding’ in the context of [stay-
    relief 
    motions].” 575 U.S., at 502
    . Adjudication of a creditor’s motion
    for relief from the stay is properly considered a discrete “proceeding.”
    A bankruptcy court’s order ruling on a stay-relief motion disposes of a
    procedural unit anterior to, and separate from, claim-resolution pro-
    ceedings. It occurs before and apart from proceedings on the merits of
    creditors’ claims. And its resolution forms no part of the adversary
    claims-adjudication process, proceedings typically governed by state
    substantive law. Relief from bankruptcy’s automatic stay thus pre-
    sents a discrete dispute qualifying as an independent “proceeding”
    within the meaning of §158(a). 
    Bullard, 575 U.S., at 502
    –505. Pp. 6–
    8.
    (c) Ritzen incorrectly characterizes denial of stay relief as determin-
    ing nothing more than the forum for claim adjudication and thus a
    preliminary step in the claims-adjudication process. Resolution of a
    stay-relief motion can have large practical consequences, however, in-
    cluding whether a creditor can isolate its claim from those of other
    creditors and go it alone outside bankruptcy or the manner in which
    adversary claims will be adjudicated. Moreover, bankruptcy’s auto-
    matic stay stops even nonjudicial efforts to obtain or control the
    debtor’s assets, matters that often do not concern the forum for, and
    cannot be considered part of, any subsequent claim adjudication.
    Ritzen errs in arguing that the order should nonetheless rank as non-
    final where, as here, the bankruptcy court’s decision turns on a sub-
    stantive issue that may be raised later in the litigation. Section 158(a)
    asks whether the order in question terminates a procedural unit sepa-
    rate from the remaining case, not whether the bankruptcy court has
    preclusively resolved a substantive issue. Finally, rather than disrupt-
    ing the efficiency of the bankruptcy process, immediate appeal may
    permit creditors to establish their rights expeditiously outside the
    bankruptcy process, affecting the relief sought and awarded later in
    the bankruptcy case. Pp. 8–11.
    
    906 F.3d 494
    , affirmed.
    GINSBURG, J., delivered the opinion for a unanimous Court.
    Cite as: 589 U. S. ____ (2020)                                 1
    Opinion of the Court
    NOTICE: This opinion is subject to formal revision before publication in the
    preliminary print of the United States Reports. Readers are requested to
    notify the Reporter of Decisions, Supreme Court of the United States, Wash-
    ington, D. C. 20543, of any typographical or other formal errors, in order that
    corrections may be made before the preliminary print goes to press.
    SUPREME COURT OF THE UNITED STATES
    _________________
    No. 18–938
    _________________
    RITZEN GROUP, INC., PETITIONER v.
    JACKSON MASONRY, LLC
    ON WRIT OF CERTIORARI TO THE UNITED STATES COURT OF
    APPEALS FOR THE SIXTH CIRCUIT
    [January 14, 2020]
    JUSTICE GINSBURG delivered the opinion of the Court.
    Under the Bankruptcy Code, filing a petition for bank-
    ruptcy automatically “operates as a stay” of creditors’ debt-
    collection efforts outside the umbrella of the bankruptcy
    case. 
    11 U.S. C
    . §362(a). The question this case presents
    concerns the finality of, and therefore the time allowed for
    appeal from, a bankruptcy court’s order denying a creditor’s
    request for relief from the automatic stay. In civil litigation
    generally, a court’s decision ordinarily becomes “final,” for
    purposes of appeal, only upon completion of the entire case,
    i.e., when the decision “terminate[s the] action” or “ends the
    litigation on the merits and leaves nothing for the court to
    do but execute the judgment.” Gelboim v. Bank of America
    Corp., 
    574 U.S. 405
    , 409 (2015) (internal quotation marks
    omitted). The regime in bankruptcy is different. A bank-
    ruptcy case embraces “an aggregation of individual contro-
    versies.” 1 Collier on Bankruptcy ¶5.08[1][b], p. 5–43 (16th
    ed. 2019). Orders in bankruptcy cases qualify as “final”
    when they definitively dispose of discrete disputes within
    the overarching bankruptcy case. Bullard v. Blue Hills
    Bank, 
    575 U.S. 496
    , 501 (2015).
    2      RITZEN GROUP, INC. v. JACKSON MASONRY, LLC
    Opinion of the Court
    The precise issue the Court today decides: Does a credi-
    tor’s motion for relief from the automatic stay initiate a dis-
    tinct proceeding terminating in a final, appealable order
    when the bankruptcy court rules dispositively on the mo-
    tion? In agreement with the courts below, our answer is
    “yes.” We hold that the adjudication of a motion for relief
    from the automatic stay forms a discrete procedural unit
    within the embracive bankruptcy case. That unit yields a
    final, appealable order when the bankruptcy court unre-
    servedly grants or denies relief.
    I
    In civil litigation generally, 
    28 U.S. C
    . §1291 governs ap-
    peals from “final decisions.” Under that provision, a party
    may appeal to a court of appeals as of right from “final de-
    cisions of the district courts.” 
    Ibid. A “final decision”
    within
    the meaning of §1291 is normally limited to an order that
    resolves the entire case. Accordingly, the appellant must
    raise all claims of error in a single appeal. See In re Saco
    Local Development Corp., 
    711 F.2d 441
    , 443 (CA1 1983)
    (Breyer, J.) (“Traditionally, every civil action in a federal
    court has been viewed as a ‘single judicial unit,’ from which
    only one appeal would lie.”). This understanding of the
    term “final decision” precludes “piecemeal, prejudgment ap-
    peals” that would “undermin[e] efficient judicial admin-
    istration and encroac[h] upon the prerogatives of district
    court judges.” 
    Bullard, 575 U.S., at 501
    (quoting Mohawk
    Industries, Inc. v. Carpenter, 
    558 U.S. 100
    , 106 (2009); in-
    ternal quotation marks omitted).
    The ordinary understanding of “final decision” is not at-
    tuned to the distinctive character of bankruptcy litigation.
    A bankruptcy case encompasses numerous “individual con-
    troversies, many of which would exist as stand-alone law-
    suits but for the bankrupt status of the debtor.” 
    Bullard, 575 U.S., at 501
    (internal quotation marks omitted). It is
    Cite as: 589 U. S. ____ (2020)              3
    Opinion of the Court
    thus common for bankruptcy courts to resolve discrete con-
    troversies definitively while the umbrella bankruptcy case re-
    mains pending. Delaying appeals from discrete, controversy-
    resolving decisions in bankruptcy cases would long
    postpone appellate review of fully adjudicated disputes.
    Moreover, controversies adjudicated during the life of a
    bankruptcy case may be linked, one dependent on the out-
    come of another. Delaying appeal until the termination of
    the entire bankruptcy case, therefore, could have this unto-
    ward consequence: Reversal of a decision made early on
    could require the bankruptcy court to unravel later adjudi-
    cations rendered in reliance on an earlier decision.
    The provision on appeals to U. S. district courts from de-
    cisions of bankruptcy courts is 
    28 U.S. C
    . §158(a). Under
    that provision, an appeal of right lies from “final judgments,
    orders, and decrees” entered by bankruptcy courts “in cases
    and proceedings.” 
    Ibid. By providing for
    appeals from final
    decisions in bankruptcy “proceedings,” as distinguished
    from bankruptcy “cases,” Congress made “orders in bank-
    ruptcy cases . . . immediately appeal[able] if they finally dis-
    pose of discrete disputes within the larger [bankruptcy]
    case.” 
    Bullard, 575 U.S., at 501
    (quoting Howard Delivery
    Service, Inc. v. Zurich American Ins. Co., 
    547 U.S. 651
    , 657,
    n. 3 (2006)); see In re Saco Local Development 
    Corp., 711 F.2d, at 444
    –447. In short, “the usual judicial unit for an-
    alyzing finality in ordinary civil litigation is the case, [but]
    in bankruptcy[,] it is [often] the proceeding.” Brief for
    United States as Amicus Curiae 10.
    Correct delineation of the dimensions of a bankruptcy
    “proceeding” is a matter of considerable importance. An er-
    roneous identification of an interlocutory order as a final
    decision may yield an appeal over which the appellate fo-
    rum lacks jurisdiction. Conversely, an erroneous identifi-
    cation of a final order as interlocutory may cause a party to
    miss the appellate deadline.
    4      RITZEN GROUP, INC. v. JACKSON MASONRY, LLC
    Opinion of the Court
    II
    The dispute at hand involves a contract in which Ritzen
    Group, Inc. (Ritzen) agreed to buy land in Nashville, Ten-
    nessee from Jackson Masonry, LLC (Jackson). The land
    sale was never effected. Blaming Jackson for the deal’s un-
    raveling, Ritzen sued for breach of contract in Tennessee
    state court. After over a year of litigation, just days before
    trial was to begin, Jackson filed for bankruptcy under
    Chapter 11 of the Bankruptcy Code. By operation of the
    Bankruptcy Code’s automatic stay provision, 
    11 U.S. C
    .
    §362(a), the state-court litigation was put on hold.
    Ritzen filed a motion in the Federal Bankruptcy Court for
    relief from the automatic stay, seeking an order allowing
    the trial to proceed in state court. Ritzen argued that relief
    would promote judicial economy and that Jackson had filed
    for bankruptcy in bad faith. After a hearing, the Bank-
    ruptcy Court denied the motion. The Bankruptcy Code and
    Federal Rules of Bankruptcy Procedure require parties to
    appeal from a final order “within 14 days after entry of the
    . . . order . . . being appealed.” 
    28 U.S. C
    . §158(c)(2); Fed.
    Rule Bkrtcy. Proc. 8002(a). Ritzen did not appeal from the
    order refusing to lift the stay within the prescribed period.
    In pursuit of the breach-of-contract claim initially com-
    menced in state court, Ritzen filed a proof of claim against
    the bankruptcy estate. Following an adversary proceeding,
    the Bankruptcy Court found that Ritzen, not Jackson, was
    the party in breach of the land-sale contract because Ritzen
    failed to secure financing by the closing date. The court
    therefore disallowed Ritzen’s claim against the bankruptcy
    estate. Without objection from Ritzen, the court confirmed
    Jackson’s plan of reorganization. The plan permanently en-
    joined all creditors from the “commencement or continua-
    tion of any . . . proceeding against [d]ebtor . . . on account
    of [c]laims against [d]ebtor.” Debtor’s Plan of Reorganiza-
    tion in No. 3:16–bk–02065 (MD Tenn.), p. 15.
    Thereafter, Ritzen filed two separate notices of appeal in
    Cite as: 589 U. S. ____ (2020)                      5
    Opinion of the Court
    the District Court for the Middle District of Tennessee.
    First, Ritzen challenged the Bankruptcy Court’s order
    denying relief from the automatic stay. Second, Ritzen
    challenged the court’s resolution of its breach-of-contract
    claim.
    The District Court rejected the first of Ritzen’s appeals as
    untimely, holding that under §158(c)(2) and Federal Rule of
    Bankruptcy Procedure 8002(a), time to appeal expired 14
    days after the Bankruptcy Court’s entry of the order deny-
    ing relief from the automatic stay. Turning to the appeal
    from the Bankruptcy Court’s rejection of Ritzen’s breach-of-
    contract claim, the District Court ruled against Ritzen on
    the merits.
    On further appeal, the Court of Appeals for the Sixth Cir-
    cuit affirmed the District Court’s dispositions. As to the
    timeliness of the first notice of appeal, the Court of Appeals
    rendered this determination: Adjudication of Ritzen’s mo-
    tion for relief from the automatic stay qualified as a discrete
    “proceeding,” commencing with the filing of the motion, fol-
    lowed by procedural steps, and culminating in a “[disposi-
    tive] decision based on the application of a legal standard.”
    In re Jackson Masonry, LLC, 
    906 F.3d 494
    , 499–500
    (2018).1 The 14-day appeal clock, the Court of Appeals
    therefore concluded, ran from the order denying the motion
    to lift the stay, a disposition “(1) entered in a proceeding
    and (2) final[ ly] terminating that proceeding.” 
    Id., at 499
    (alterations omitted).
    We granted certiorari to resolve whether orders denying
    relief from bankruptcy’s automatic stay are final, therefore
    ——————
    1 The “procedural steps” included Ritzen’s provision of notice to Jack-
    son and the Bankruptcy Court’s conduct of a hearing at which the parties
    presented witness testimony and other evidence. App. to Pet. for Cert.
    48a. The question under the “applicable legal standard”: Did Ritzen es-
    tablish “cause” to permit the state-court litigation to proceed. See 
    id., at 52a–67a;
    11 U.S. C
    . §362(d)(1).
    6      RITZEN GROUP, INC. v. JACKSON MASONRY, LLC
    Opinion of the Court
    immediately appealable under §158(a)(1). 587 U. S. ___
    (2019).
    III
    A
    This Court’s opinion in Bullard v. Blue Hills Bank, 
    575 U.S. 496
    , guides our application of §158(a)’s finality re-
    quirement. Addressing repayment plan confirmations un-
    der Chapter 13, we held in Bullard that a bankruptcy
    court’s order rejecting a proposed plan was not “final” under
    §158(a) because it did not conclusively resolve the relevant
    “proceeding.” 
    Id., at 499
    , 502–503. The plan-confirmation
    process, the Bullard opinion explains, involves back and
    forth negotiations. See 
    id., at 502.
    Plan proposal rejections
    may be followed by amended or new proposals. Only plan
    approval, we observed, “alters the status quo and fixes the
    rights and obligations of the parties.” 
    Ibid. “Denial of con-
    firmation with leave to amend,” by contrast, leaves the
    “parties’ rights and obligations . . . unsettled,” and therefore
    cannot be typed “final.” 
    Id., at 503.
    The appropriate proce-
    dural unit for determining finality, we concluded, is not a
    plan proposal, it is “the process of attempting to arrive at
    an approved plan.” 
    Id., at 502.
                                   B
    We take up next the application of Bullard’s analysis to
    a bankruptcy court’s order denying relief from the auto-
    matic stay. As earlier stated, 
    see supra, at 1
    , under the
    Bankruptcy Code, the filing of a bankruptcy petition auto-
    matically halts efforts to collect prepetition debts from the
    bankrupt debtor outside the bankruptcy forum. 
    11 U.S. C
    .
    §362(a). The stay serves to “maintai[n] the status quo and
    preven[t] dismemberment of the estate” during the pen-
    dency of the bankruptcy case. 1 Collier ¶1.05[1], p. 1–19; 3
    
    id., ¶362.03, p.
    362–23. Among other things, the stay bars
    commencement or continuation of lawsuits to recover from
    Cite as: 589 U. S. ____ (2020)                     7
    Opinion of the Court
    the debtor, enforcement of liens or judgments against the
    debtor, and exercise of control over the debtor’s property.
    §362(a).
    A creditor may seek relief from the stay by filing in the
    bankruptcy court a motion for an order “terminating, an-
    nulling, modifying, or conditioning” the stay, asserting in
    support of the motion either “cause” or the presence of spec-
    ified conditions. §362(d). A majority of circuits and the
    leading treatises regard orders denying such motions as fi-
    nal, immediately appealable decisions.2 We reach the same
    conclusion.
    Bullard instructs that we inquire “how to define the im-
    mediately appealable ‘proceeding’ in the context of [stay-
    relief 
    motions].” 575 U.S., at 502
    . Jackson urges that, as the
    Court of Appeals held, adjudication of a stay-relief motion
    is a discrete “proceeding.” Ritzen urges that stay-relief ad-
    judication is properly considered a first step in the process
    of adjudicating a creditor’s claim against the estate.
    We agree with the Court of Appeals and Jackson that the
    appropriate “proceeding” is the stay-relief adjudication. A
    bankruptcy court’s order ruling on a stay-relief motion dis-
    poses of a procedural unit anterior to, and separate from,
    ——————
    2 See, e.g., Rajala v. Gardner, 
    709 F.3d 1031
    , 1034 (CA10 2013); In re
    Excel Innovations, Inc., 
    502 F.3d 1086
    , 1092 (CA9 2007); In re James
    Wilson Assocs., 
    965 F.2d 160
    , 166 (CA7 1992); In re Sonnax Industries,
    Inc., 
    907 F.2d 1280
    , 1284–1285 (CA2 1990); In re Lieb, 
    915 F.2d 180
    ,
    185, n. 3 (CA5 1990); Grundy Nat. Bank v. Tandem Mining Corp., 
    754 F.2d 1436
    , 1439 (CA4 1985), overruled in part on other grounds by
    United Sav. Assn. of Tex. v. Timbers of Inwood Forest Associates, Ltd.,
    
    484 U.S. 365
    (1988); In re American Mariner Industries, Inc., 
    734 F.2d 426
    , 429 (CA9 1984), overruled in part on other grounds by Timbers of
    Inwood Forest Associates, Ltd., 
    484 U.S. 365
    ; In re Leimer, 
    724 F.2d 744
    ,
    745 (CA8 1984); 16 C. Wright, A. Miller, & E. Cooper, Federal Practice
    and Procedure §3926.2, p. 352, nn. 39–40 (3d ed. 2012 and Supp. 2019)
    (“Automatic-stay rulings by a bankruptcy judge or appellate panel
    should be appealable as final decisions.”). See also 1 Collier on Bank-
    ruptcy ¶5.09, pp. 5–55 to 5–57 (16th ed. 2019).
    8      RITZEN GROUP, INC. v. JACKSON MASONRY, LLC
    Opinion of the Court
    claim-resolution proceedings. Adjudication of a stay-relief
    motion, as just observed, occurs before and apart from pro-
    ceedings on the merits of creditors’ claims: The motion ini-
    tiates a discrete procedural sequence, including notice and
    a hearing, and the creditor’s qualification for relief turns on
    the statutory standard, i.e., “cause” or the presence of spec-
    ified conditions. §362(d), (e); Fed. Rules Bkrtcy. Proc.
    4001(a)(1) and (2), 9014 (describing procedure for adjudicat-
    ing motions for relief from automatic stay). Resolution of
    stay-relief motions does not occur as part of the adversary
    claims-adjudication process, proceedings typically governed
    by state substantive law. See Butner v. United States, 
    440 U.S. 48
    , 54–55 (1979). Under Bullard, a discrete dispute
    of this kind constitutes an independent “proceeding” within
    the meaning of 
    28 U.S. C
    . 
    §158(a). 575 U.S., at 502
    –505.
    Our conclusion that the relevant “proceeding” is the stay-
    relief adjudication is consistent with statutory text. See 
    id., at 503.
    A provision neighboring §158(a), §157(b)(2)(G),
    types motions to terminate, annul, or modify the automatic
    stay as “core proceedings” arising in a bankruptcy case.
    Section 157(b)(2) lists those motions separately from the
    “allowance or disallowance of claims against the estate.”
    §157(b)(2)(B), (G). Although the discrete “core proceedings”
    listings “hardly clinc[h] the matter,” as the “provision’s pur-
    pose is not to explain appealability,” they are a “textual
    clue” that Congress viewed adjudication of stay-relief mo-
    tions as “proceedings” distinct from claim adjudication.
    
    Bullard, 575 U.S., at 503
    .
    C
    In Ritzen’s view, the position Jackson advances and we
    adopt “slic[es] the case too thin.” 
    Id., at 502.
    Ritzen asserts
    that an order denying stay relief simply decides the forum
    for adjudication of adversary claims—bankruptcy court or
    state court—and therefore should be treated as merely a
    preliminary step in the claims-adjudication process. Brief
    Cite as: 589 U. S. ____ (2020)             9
    Opinion of the Court
    for Petitioner 19–21, 26–28.
    Courts, we agree, should not define “proceeding” to in-
    clude disputes over minor details about how a bankruptcy
    case will unfold. As we put it in Bullard, “[t]he concept of
    finality cannot stretch to cover, for example, an order re-
    solving a disputed request for an extension of 
    time.” 575 U.S., at 505
    .
    But Ritzen incorrectly characterizes denial of stay relief
    as determining nothing more than the forum for claim ad-
    judication. Resolution of a motion for stay relief can have
    large practical consequences. See 3 Collier ¶362.03, pp.
    362–23 to 362–24. Disposition of the motion determines
    whether a creditor can isolate its claim from those of other
    creditors and go it alone outside bankruptcy. It can also
    affect the manner in which adversary claims will be adjudi-
    cated. See 
    11 U.S. C
    . §502 (permitting summary adjudica-
    tion or estimation of amounts due in bankruptcy claims ad-
    judication). These are not matters of minor detail; they can
    significantly increase creditors’ costs. Leaving the stay in
    place may, inter alia, delay collection of a debt or cause col-
    lateral to decline in value. See Brief for United States as
    Amicus Curiae 14.
    Ruling on a motion for stay relief, it is true, will deter-
    mine where the adjudication of an adversary claim will take
    place—in the bankruptcy forum or state court. But that ef-
    fect does not render a ruling nonfinal. Orders denying a
    plaintiff the opportunity to seek relief in its preferred forum
    often qualify as final and immediately appealable, though
    they leave the plaintiff free to sue elsewhere. Notably, dis-
    missal for want of personal jurisdiction ranks as a final de-
    cision. See Daimler AG v. Bauman, 
    571 U.S. 117
    , 124–125
    (2014). So too, dismissal for improper venue, or under the
    doctrine of forum non conveniens. See United States v. Wal-
    lace & Tiernan Co., 
    336 U.S. 793
    , 794–795, n. 1 (1949); 15A
    C. Wright, A. Miller, & E. Cooper, Federal Practice and Pro-
    10       RITZEN GROUP, INC. v. JACKSON MASONRY, LLC
    Opinion of the Court
    cedure §§3914.6, 3914.12 (2d ed. 1992 and Supp. 2019) (col-
    lecting cases on appealability of dismissal without prejudice
    to filing in another forum).3
    Ritzen’s position encounters a further shoal: Many mo-
    tions to lift the automatic stay do not involve adversary
    claims against the debtor that would be pursued in another
    forum but for bankruptcy. Bankruptcy’s embracive auto-
    matic stay stops even nonjudicial efforts to obtain or control
    the debtor’s assets. See §362(a). Motions for stay relief
    may, for example, seek permission to repossess or liquidate
    collateral, to terminate a lease, or to set off debts. 
    Ibid. These matters do
    not concern the forum for, and cannot be
    considered part of, any subsequent claim adjudication. See
    Brief for National Association of Consumer Bankruptcy At-
    torneys as Amicus Curiae 23–24. We see no good reason to
    treat stay adjudication as the relevant “proceeding” in only
    a subset of cases. As we have held in another context, “the
    issue of appealability” should “be determined for the entire
    category to which a claim belongs.” Digital Equipment
    Corp. v. Desktop Direct, Inc., 
    511 U.S. 863
    , 868 (1994) (ad-
    dressing collateral order doctrine).
    Ritzen alternatively argues that, even if an order denying
    stay relief is not part of the claims-adjudication process, the
    order should nonetheless rank as nonfinal where, as here,
    the bankruptcy court’s decision turns on a substantive issue
    that may be raised later in the litigation. Brief for Peti-
    tioner 45. Specifically, Ritzen stresses that it based its
    stay-relief motion largely on an argument that Jackson
    filed for bankruptcy in bad faith, an issue that could have
    been urged again later in the bankruptcy case. 
    Ibid. That argument is
    misaddressed. Section 158(a) asks
    ——————
    3 We note, however, that within the federal court system, when venue
    is laid in the wrong district, or when the plaintiff chooses an inconvenient
    forum, transfer rather than dismissal is ordinarily ordered if “in the in-
    terest of justice.” 
    28 U.S. C
    . §§1404(a), 1406.
    Cite as: 589 U. S. ____ (2020)             11
    Opinion of the Court
    whether the order in question terminates a procedural unit
    separate from the remaining case, not whether the bank-
    ruptcy court has preclusively resolved a substantive issue.
    It does not matter whether the court rested its decision on
    a determination potentially pertinent to other disputes in
    the bankruptcy case, so long as the order conclusively re-
    solved the movant’s entitlement to the requested relief.
    Finally, Ritzen protests that the rule we adopt will en-
    courage piecemeal appeals and unduly disrupt the effi-
    ciency of the bankruptcy process. 
    Id., at 48–52.
    As we see
    it, classifying as final all orders conclusively resolving stay-
    relief motions will avoid, rather than cause, “delays and in-
    efficiencies.” 
    Bullard, 575 U.S., at 504
    . Immediate appeal,
    if successful, will permit creditors to establish their rights
    expeditiously outside the bankruptcy process, affecting the
    relief sought and awarded later in the bankruptcy case.
    The rule Ritzen urges “would force creditors who lose stay-
    relief motions to fully litigate their claims in bankruptcy
    court and then, after the bankruptcy case is over, appeal
    and seek to redo the litigation all over again in the original
    
    court.” 906 F.3d, at 503
    .
    This case is illustrative. After the Bankruptcy Court de-
    nied Ritzen’s motion for relief from the automatic stay,
    Ritzen filed a claim against Jackson in the Bankruptcy
    Court. The parties and court expended substantial re-
    sources definitively litigating the dueling breach-of-
    contract allegations, and Ritzen lost. The Bankruptcy Court
    thereafter considered and confirmed Jackson’s reorganiza-
    tion plan. By endeavoring now to appeal the stay-relief or-
    der, after forgoing an appeal directly after the denial,
    Ritzen seeks to return to square one. Its aim, to relitigate
    the opposing contract claims in state court. Nevermind
    that the Bankruptcy Court has fully adjudicated the con-
    tract claims and has, without objection from Ritzen, ap-
    proved Jackson’s reorganization plan. The second bite
    Ritzen seeks scarcely advances the finality principle.
    12      RITZEN GROUP, INC. v. JACKSON MASONRY, LLC
    Opinion of the Court
    IV
    Because the appropriate “proceeding” in this case is the
    adjudication of the motion for relief from the automatic
    stay, the Bankruptcy Court’s order conclusively denying
    that motion is “final.” The court’s order ended the stay-
    relief adjudication and left nothing more for the Bankruptcy
    Court to do in that proceeding.4 The Court of Appeals there-
    fore correctly ranked the order as final and immediately ap-
    pealable, and correctly affirmed the District Court’s dismis-
    sal of Ritzen’s appeal as untimely.
    *     *    *
    For the reasons stated, the judgment of the Court of Ap-
    peals is
    Affirmed.
    ——————
    4 We do not decide whether finality would attach to an order denying
    stay relief if the bankruptcy court enters it “without prejudice” because
    further developments might change the stay calculus. Nothing in the
    record before us suggests that this is such an order.
    

Document Info

Docket Number: 18-938

Citation Numbers: 140 S. Ct. 582, 205 L. Ed. 2d 419

Judges: Ruth Bader Ginsburg

Filed Date: 1/14/2020

Precedential Status: Precedential

Modified Date: 10/19/2024

Authorities (15)

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