In Re: Lehman Brothers Holdings, Inc.

Background

The appeal arose from the bankruptcy of Lehman Brothers Holdings Inc. and its affiliates. In April 2019, Rex Wu, who was representing himself, asked the Bankruptcy Court for permission to file a late claim against Lehman Brothers Holdings Inc. Dan Ianello, also representing himself, joined Wu’s motion but did not file a separate motion.

The Bankruptcy Court denied Wu’s motion on June 19, 2019, after argument. Wu did not file a notice of appeal. Ianello did file one. While the appeal was pending, Wu submitted a letter asking to join it, stating that illness had prevented him from filing an appeal.

Standing to Appeal

Lehman Brothers argued that Ianello lacked standing. In bankruptcy appeals, an appellant must be a person directly and financially harmed by the bankruptcy court’s order. The appellant must also assert their own legal rights rather than the rights of another person.

The District Court agreed with Lehman Brothers. If Wu’s motion had been granted, it would not have given Ianello permission to file a claim against Lehman Brothers. Conversely, denying Wu’s motion did not prevent Ianello from filing his own request for permission to submit a claim and did not affect any other claim he might have had. The Bankruptcy Court’s order therefore did not directly harm Ianello’s financial interests.

The court also noted that Ianello’s briefs focused on Wu’s claims. Because Ianello lacked standing, there was no properly filed appeal in which Wu could intervene. Wu’s letter could not replace a timely notice of appeal, and the court declined to convert it into a request to intervene because Ianello, the only appellant, lacked standing.

Disposition

Judge Paul A. Engelmayer dismissed the matter. The Clerk was directed to terminate Wu’s pending motion to join the appeal and close the case. Lehman Brothers was directed to serve Ianello with the order by certified mail and file proof of service.