AltWellRX, Inc. v. Topical Biomedics, Inc.

Background

AltWellRX, Inc. appealed a Bankruptcy Court order granting Topical Biomedics, Inc.’s motion to dismiss AltWellRX’s claims against it in an underlying adversary proceeding, No. 24-AP-09028-KPY.

The parties advised the District Court that the Bankruptcy Court’s order did not resolve all claims and issues in the adversary proceeding. The matters still pending included AltWellRX’s claims against Commercial Finance Partners, LLC, KeyBank National Association, and the U.S. Small Business Administration; KeyBank National Association’s counterclaim against AltWellRX; and KeyBank National Association’s cross-claims against Topical Biomedics, Inc., Commercial Finance Partners, LLC, and the U.S. Small Business Administration.

Analysis

Under 28 U.S.C. § 158(a)(1), a party may appeal a final Bankruptcy Court order as of right. The District Court explained that an order is nonfinal when it does not finally resolve a distinct dispute within the larger bankruptcy case. Because claims, a counterclaim, and cross-claims remained pending, the Bankruptcy Court’s dismissal order was not final under that provision.

A District Court may also allow an interlocutory appeal—an appeal before the Bankruptcy Court has entered a final order—under 28 U.S.C. § 158(a)(3). The applicable standard comes from 28 U.S.C. § 1292(b). AltWellRX had not asked the District Court for permission to pursue an interlocutory appeal. The District Court stated that, even if AltWellRX had made that request, permission would be denied because none of the required § 1292(b) factors was present.

Ruling

Judge Philip M. Halpern dismissed the appeal. The Clerk of Court was respectfully requested to close the case. The opinion does not state that the underlying claims against Topical Biomedics, Inc. were finally resolved by the District Court.