Sutton v. Eagle Vista Equities LLC

Background

Eve Sutton appealed from a bankruptcy-court order granting summary judgment to Eagle Vista Equities LLC and Wedgewood, Inc. The underlying lawsuit alleged wrongful foreclosure and sought cancellation of a trustee’s deed or a judgment declaring Sutton the owner of the property. Bankruptcy Court Judge Hannah L. Blumenstiel granted summary judgment for Eagle Vista and Wedgewood on those issues.

After Sutton filed her notice of appeal, she did not timely file the required Designation of Record and Statement of Issues on Appeal. Those documents were due within 14 days after the appeal became effective. Sutton filed them on August 7, 2019, about three weeks late, along with a request that the court accept the filing despite the delay.

Sutton also asked for an extension of time until November 1, 2019, to file her opening brief and request for a stay pending appeal. The appellate record had not yet been transmitted to the district court, and the court had been informed that transmission would not occur unless it accepted the late filing.

Court’s reasoning

The court applied the equitable test for excusable neglect, which considers prejudice to the opposing party, the length and effect of the delay, the reason for the delay and whether it was within the filer’s control, and whether the filer acted in good faith.

The court found that Eagle Vista had not shown prejudice. Eagle Vista and Wedgewood had filed their own designation of additional record items after Sutton’s filing, showing that they had an opportunity to respond. The court also found that a three-week delay was relatively short.

Sutton’s counsel explained that he mistakenly believed the deadline would not begin until the bankruptcy court decided Sutton’s related motion for a stay. The court found that explanation reasonable in the circumstances. It also found good faith because counsel acted quickly after being notified of the missing documents and the late filing appeared to result from a misunderstanding rather than a misrepresentation.

Ruling

The court GRANTED Sutton’s request that her Designation of Record and Statement of Issues on Appeal be accepted despite being filed late. The court also GRANTED Sutton’s Motion for an Extension of Time. It set November 1, 2019, as the deadline for her opening brief and request for a stay on appeal.

This order decided Docket Nos. 7 and 11. It addressed the filing and briefing deadlines and did not decide the merits of Sutton’s appeal from the bankruptcy court’s summary-judgment decision.