Coudert Brothers LLP v. Sullivan

Background

After Coudert Brothers LLP dissolved and entered bankruptcy, Development Specialists, Inc., acting as Coudert’s plan administrator, brought adversary actions against several former law partners to enforce contractual obligations. In this action, the defendant was William A. Sullivan. An arbitrator issued a final award determining the damages Sullivan owed Plaintiff. Plaintiff then moved in bankruptcy court to confirm the award.

The bankruptcy court issued proposed findings of fact and conclusions of law because the proceeding was a non-core bankruptcy proceeding. The district court later identified service problems but permitted Plaintiff to serve Sullivan at his publicly listed email address and workplace. Plaintiff filed certificates stating that it had completed service. The court also issued an order requiring Sullivan to explain why the proposed findings should not be adopted or, at minimum, to request an opportunity to brief the issue. Plaintiff and the Clerk served that order, but Sullivan never appeared or responded.

Review and ruling

For a non-core bankruptcy proceeding, the district court generally reviews proposed findings and conclusions of law anew, meaning independently, when a party makes timely and specific written objections. The court held that Sullivan waived his right to object because he filed no objections or notice of intent to object within the required time. Even so, the court reviewed the bankruptcy court’s proposed findings and found no error in its factual findings or legal conclusions.

Judge Kenneth M. Karas therefore adopted Judge Robert D. Drain’s proposed findings in their entirety. The court ordered the Clerk to enter judgment for Plaintiff under Judge Drain’s recommendation, directed Plaintiff to send the order to Sullivan by international mail and email and file proof of that mailing, and ordered the Clerk to close the case and mail Sullivan a copy of the order.