In Re: JJ Arch LLC

Background

Arch Real Estate Holdings, LLC, an appellee in the appeal from the dismissal of JJ Arch LLC’s Chapter 11 bankruptcy proceeding, moved by letter to dismiss the appeal under Rule 8003(a)(2) of the Federal Rules of Bankruptcy Procedure. That rule permits a district court to take appropriate action, including dismissal, when an appellant fails to take a required step after filing a notice of appeal.

Court’s reasoning

The court applied the Second Circuit’s flexible approach to dismissal for failing to meet the bankruptcy appeal requirements in Rule 8009. Relevant considerations include whether the conduct shows bad faith or a pattern of negligence, whether another party was prejudiced, and whether the appellant should have an opportunity to correct the problem.

JJ Arch’s designation of the record was due February 14, 2025. Its counsel filed the designation on the district-court docket rather than with the bankruptcy court. After Arch identified the error, JJ Arch filed the designation with the bankruptcy court, which later transmitted the appellate record. The court held that this cured delay did not show the level of negligence needed to impose the extreme sanction of dismissal.

Arch also argued that JJ Arch failed to comply with the requirement to order transcripts of necessary proceedings or certify that it was not ordering a transcript. The court noted that Arch had not identified any untranscribed proceedings necessary to resolve the appeal, and JJ Arch represented that the relevant proceedings had been transcribed. The court therefore found no indication that Arch was prejudiced.

Disposition

Judge Jeannette A. Vargas denied the motion to dismiss the appeal.