In Re: 45 John Lofts, LLC

Background

Chaim Babad and Congregation Kahal Minchas Church appealed a judgment from a bankruptcy case and, in this related appeal, an order granting turnover of funds toward that judgment. The opinion states that the appellants had designated the record on appeal but had not completed the appeal for more than a year. They failed to file a statement of the issues or a brief by the deadlines in Federal Rule of Bankruptcy Procedure 8009(a).

The court had ordered the appellants to show cause—that is, explain—why the appeal should not be dismissed for failing to file a brief. The order set a January 2, 2025 deadline and warned that failure to comply could result in dismissal or other sanctions. The deadline passed without a response.

Court’s Analysis

The court explained that the Bankruptcy Rules’ deadlines are not jurisdictional, meaning that missing them does not automatically require dismissal. Instead, the court had discretion to decide whether dismissal was appropriate.

The court applied factors used for dismissing a case for failure to prosecute, including the length of the delay, notice that further delay could lead to dismissal, possible prejudice to the appellee, the balance between court efficiency and the party’s right to due process, and whether a lesser sanction would be effective. The court found dismissal appropriate because the appeal had been pending without a brief for more than a year, the appellants provided no explanation or excuse, and they did not respond after receiving notice that continued failure could lead to dismissal. Although the record did not show actual prejudice to the appellee, the court stated that prejudice may be presumed when delay is lengthy and inexcusable. The court also determined that no lesser sanction was appropriate.

Disposition

Judge Mary Kay Vyskocil dismissed the appeal with prejudice. The Clerk of Court was directed to enter judgment and close the case.

Uncertainty

The supplied case metadata lists a filing date of January 8, 2025, while the opinion text states January 8, 2024. The detailed header uses the date stated in the opinion text.