In re: MTE Holdings LLC, et al.

Filing 13

Recommendation that Bankruptcy Appeal be withdrawn from mandatory mediation. Signed by Judge Mary Pat Thynge on 3/16/2022. (Taylor, Daniel)

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF DELAWARE

In re:

:
:
MTE HOLDINGS LLC, et al.,
:
:
Debtors.
:
__________________________________ :
:
CHENAULT-VAUGHAN FAMILY
:
PARTNERSHIP, LTD.,
:
:
Appellant,
:
:
v.
:
:
CENTENNIAL RESOURCE
:
PRODUCTION LLC,
:
:
Appellee.
:
__________________________________ :

Chapter 11
Bankruptcy Case No. 19-12269 (CTG)

C.A. No. 21-1846-LPS
Bankr. BAP No. 21-93

RECOMMENDATION
At Wilmington this 16th day of March, 2022.
WHEREAS, pursuant to paragraph 2(a) of the Procedures to Govern Mediation
of Appeals from the United States Bankruptcy Court for this District dated September
11, 2012, the court conducted an initial review, which included information from
counsel,1 to determine the appropriateness of mediation in this matter;
WHEREAS, as a result of the above screening process, the issues involved in
this case are not amenable to mediation and mediation at this stage would not be a
productive exercise, a worthwhile use of judicial resources nor warrant the expense of
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Written information was provided by counsel for the parties which is not made
part of the court record because it relates to mediation.

the process.
Appellant Chanault-Vaughan Family Partnership,Ltd (Cheanult-Vaughn) and
Appellees MCD Reeves Energy LLC, Centennial Resource Production LLC and
Centenial Resource Development, Inc. (collectively the “Parties”) provided their joint
letter on March 15, 2022. Appellee MCD Reeves Energy LLC did not take a position on
this appeal and does not participate in the joint m ediation letter.
The history of litigation in this matter in this Court to date is as follows. On
12/29/21, a notice of appals was filed. D.I. 1. On 1/4/22 an Oral Order was issued by
this judge ordering that on or before 1/26/22 the parties shall advise in a joint written
submission their respective positions on mediation and their reasoning for their
positions.. D.I. 3. The case was assigned to Judge Stark on 1/5/22. A
Recommendation was issued by this judge regarding Mandatory Mediation with
objections due by 2/10/22. D.I. 5. An objection was filed to the Recommendations by
Appellant on 2/2/22. D.I. 6. On 2/16/22, and Oral Order w as issued by Judge Stark
ordering that (1) at present no action would be taken regarding whether this matter
should be withdrawn from mandatory mediation; (2) in accordance with the parties’
agreement, Appellant was required to file an Amended Notice of Appeal within fourteen
(14) days of issuance of a final order by the Bankruptcy Court; and (3) the parties shall
provide an Amended Joint Submission on Mandatory Mediation and a Proposed
Briefing Schedule within fourteen (14) days of the filing Amended notice of Appeal. D.I.
7. An Amended Notice of Appeal from the Judgment and Memorandum entered on
2/14/22 by Judge Craig T. Goldblatt was filed on 2/28/22, for which a Notice of
Docketing the Amended Bankruptcy Appeal was entered. D.I. 9.
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The Appeal involves Appellant challenging the (1) entry of summary judgment in
favor of MCD Development, Inc., Centennial Resources Production LLC, and
Centennial Resource Development, Inc. by Judge Goldblatt of the Bankruptcy Court
and (2) any Order encompassed within this Judgement.
Appellant and Appellees conferred and jointly request that the appeal be
removed from mandatory mediation including that 1) mediation of this appeal is unlikely
to be productive; 2) the issues on appeal primarily involve issues of law; and 3) the
parties’s previous settlement efforts have been unsuccessful.
The parties have not previously engaged any ADR process.
The parties request that the following briefing schedule be entered:
Appellant’s Opening Brief

On or before April 28, 2022

Appellees’ Answering Brief

45 days after Appellant’s Brief is served

Appellant’s Reply Brief

21 days after Appellees’ Brief is served

The Parties further request, to the extent the proceeding is delayed, that the
proposed briefing be allowed to be adjusted accordingly.
THEREFORE, IT IS RECOMMENDED that, pursuant to paragraph 2(a)
Procedures to Govern Mediation of Appeals from the United States Bankruptcy Court
for this District and 28 U.S.C. § 636(b), this matter be withdrawn from the mandatory
referral for mediation and proceed through the appellate process of this Court. No
objections are anticipated to this Recommendation pursuant to 28 U.S.C. §
636(b)(1)(B), FED. R. CIV. P. 72(a) and D. DEL. LR 72.1 because the Recommendation is
consistent with the parties’ request.
Local counsel are obligated to inform out-of-state counsel of this Order.
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/s/ Mary Pat Thynge
Chief U.S. Magistrate Judge Mary Pat Thynge

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