Moya v. LNU
Filing
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MEMORANDUM OPINION AND ORDER AND ORDER TO SHOW CAUSE REGARDING 1 Notice of Appeal by Magistrate Judge Gregory J. Fouratt. Show Cause Response due by 3/14/2018. (kdj)
UNITED STATES DISTRICT COURT
DISTRICT OF NEW MEXICO
CYNTHIA MOYA,
Appellant,
v.
Civ. No. 17-978 JB/GJF
FNU LNU,
Appellee.
MEMORANDUM OPINION
AND ORDER TO SHOW CAUSE
THIS MATTER is before the Court sua sponte for consideration of the Notice of Appeal
filed by Appellant “Cynthia Moya, Estate.” ECF No. 1. Appellant seeks to appeal an order
entered by the Bankruptcy Court in Case No. 17-10839-j7. Having carefully reviewed the record
and applicable law, the Court will require Moya to show cause why the appeal should not be
dismissed for lack of jurisdiction.
I.
PROCEDURAL BACKGROUND
Appellant commenced the underlying Chapter 7 bankruptcy case on April 4, 2017. Case
No. 17-10839-j7, Bankruptcy Docket No. (“BK No.”) 1. Appellant’s bankruptcy petition states
that “Cynthia Moya, Estate” is a “Non-Individual ENTITY.” 1 BK No. 1. On June 2, 2017, the
Chapter 7 Trustee filed a motion to dismiss Appellant’s bankruptcy case. BK No. 34. The
Trustee recited that Moya appeared at the first meeting of creditors, claimed to be an attorney
representing Appellant’s estate, and then admitted she was not licensed to practice law. Id. The
Trustee pointed out that as a “non-individual entity,” the Appellant-Estate must comply with NM
Local Bankruptcy Rule 1074-1 by retaining counsel. Id.
U.S. Bankruptcy Judge Robert Jacobvitz (“the Bankruptcy Court”) held a hearing on the
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Cynthia Moya’s individual Chapter 7 case had been dismissed about two weeks earlier for failure to pay the filing
fee. See BK No. 50 in Case No. 16-13074-j7.
motion to dismiss on July 20, 2017. BK No. 46. The resulting order directed Appellant to retain
counsel and pay the $335.00 bankruptcy filing fee in cash no later than August 31, 2017. 2 BK No.
46. The Bankruptcy Court warned that the failure to timely comply would result in dismissal of
the bankruptcy case without further notice or a hearing. Id. In response, Appellant filed an
“Affidavit of EVIDENCE of Non-Consent in Brief.”
BK No. 49.
The Bankruptcy Court
construed the filing as a motion to reconsider, which it then denied. BK No. 50. By an order
entered September 1, 2017, the Bankruptcy Court dismissed Appellant’s bankruptcy case for
failing to pay the filing fee and/or retain counsel (“Dismissal Order”). BK No. 51.
On September 25, 2017, Appellant filed a “[n]otice of appeal to an [A]rticle III venue as a
natural woman and not a non-individual . . . on behalf of the constructive trust as the BENEFICIAL
OWNER OF THE EQUITABLE CESTUI QUE TRUST.” BK No. 58. The Bankruptcy Clerk
transmitted the Notice of Appeal to the District Court, which generated the instant case (Civ. No.
17-978 JB/GJF).
BK No. 62.
The Notice of Appeal includes the Bankruptcy Case No.
(17-10839-j7) but does not refer to the Dismissal Order or otherwise identify the challenged ruling.
Id.
On October 16, 2017 - before the District Court appeal was ripe for determination 3 Appellant filed a second Notice of Appeal. BK No. 66. Appellant again failed to identify the
Bankruptcy Court order at issue. Id. However, unlike the first Notice of Appeal, the second
Notice of Appeal did not specifically elect to have the District Court hear the appeal. Id. The
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The hearing minutes indicate Appellant was required to pay the filing fee in cash because the money orders Appellant
originally submitted were not honored by the bank. See ECF No. 46 in case no. 17-10839-j7.
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The appellant must designate the record and file a statement of issues to be presented before the District Court can
address the merits of an appeal. See FED. R. BANKR. P. 8009(a)(1)(A). The Bankruptcy Clerk then transmits the
record to the District Court or, alternatively, files a notice describing why she cannot transmit the record. See FED. R.
BANKR. P. 9036; NM LBR 9036-1; FED. R. CIV. P. 5(b)(3).
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Bankruptcy Clerk therefore transmitted the second Notice of Appeal to the Bankruptcy Appellate
Panel (“BAP”) as required by Bankruptcy Rule 8003. BK No. 67; FED. R. BANKR. P. 8003(d)(1)
(“The bankruptcy clerk must promptly transmit the notice of appeal to the BAP clerk if . . . the
appellant has not elected to have the district court hear the appeal.”). The BAP directed Appellant
to show cause why the BAP appeal should not be dismissed as untimely. Case No. 17-046, BAP
Docket No. (“BAP No.”) 5. Appellant failed to respond, and the BAP dismissed the second
appeal by a mandate issued November 17, 2017. BAP No. 11-2; BK No. 96.
The District Court case is still pending, but Appellant has not designated the items to be
included in the record or filed a statement of issues to be presented as required by Federal Rule of
Bankruptcy Procedure 8009. Instead, Moya filed an affidavit stating that, in her view, Appellant
does not need to name an appellee. ECF No. 5. For reasons unknown, the affidavit also attaches
the second Notice of Appeal transmitted to the BAP. Id.
II.
DISCUSSION
The District Court has “jurisdiction to hear appeals from . . . final judgments, orders, and
decrees” of the Bankruptcy Court.
28 U.S.C. § 158(a)(1) (2018).
The appellate process
functions in essentially the “same manner as [civil] appeals . . . are taken to the courts of appeals
from the district courts.” 28 U.S.C. § 158(c)(2). However, the procedures and “time limits that
govern such an appeal are . . . set forth in the Bankruptcy Rules” rather than the Federal Rules of
Appellate Procedure. In re Latture, 605 F.3d 830, 838 (10th Cir. 2010). See also FED. R. BANKR.
P. 8001(a) (“These . . . rules govern the procedure in a United States District Court . . . on appeal
from a judgment, order or decree of a bankruptcy court.”).
Bankruptcy Rule 8002(a) provides that “a notice of appeal must be filed . . . within 14 days
after entry of the judgment, order, or decree being appealed.” The 14-day appeal period can only
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be extended where: (1) a party files a post-judgment motion within 14 days of the bankruptcy
ruling; (2) the appellant is incarcerated; or (3) the appellant timely requests an extension. FED. R.
BANKR. P. 8002(b)-(d). The Tenth Circuit has held that the “failure to file a timely notice of
appeal is a jurisdictional defect barring appellate review of a bankruptcy court’s order.” Latture,
605 F.3d at 831 (citations omitted). See also U.S. v. Spaulding, 802 F.3d 1110, 1130 (10th Cir.
2015) (“Rule 8002 . . . is jurisdictional because a federal statute [28 U.S.C. § 158(c)(2)] explicitly
directs that [bankruptcy] appeals be taken . . . in the time provided by Rule 8002 of the Bankruptcy
Rules.”) (citations omitted). Courts are therefore permitted to sua sponte examine the timeliness
of a bankruptcy appeal to determine whether jurisdiction is proper. See In re Higgins, 220 B.R.
1022, 1024 (10th Cir. BAP 1998) (examining the timeliness of a bankruptcy appeal and noting that
“[t]he panel determines its jurisdiction sua sponte”); In re Bucyrus Grain Co., Inc., 905 F.2d 1362,
1365 (10th Cir. 1990) (sua sponte examining jurisdiction over a bankruptcy appeal).
The Notice of Appeal does not specify which ruling Appellant seeks to challenge in
Bankruptcy Case No. 17-10839. However, the last pre-appeal order, judgment, or decree in that
case was the Dismissal Order entered September 1, 2017. Appellant filed the first Notice of
Appeal 24 days later on September 25, 2017. It appears the Notice of Appeal is untimely, and the
Court lacks jurisdiction to hear the appeal, regardless of which Bankruptcy Court ruling Appellant
seeks to challenge in Case No. 17-10839.
Consequently, the Court hereby ORDERS Appellant Cynthia Moya, Estate to SHOW
CAUSE in writing within twenty-one (21) days of entry of this Order why this appeal should
not be dismissed for lack of jurisdiction.
It is FURTHER ORDERED that if Appellant fails to timely respond, the case may be
dismissed without notice or a hearing.
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IT IS SO ORDERED.
________________________________________
THE HONORABLE GREGORY J. FOURATT
UNITED STATES MAGISTRATE JUDGE
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