In Re: The Roman Catholic Diocese of Rockville Centre, New York

Background

The order concerns six related appeals from the same Bankruptcy Court order. That order sustained an omnibus objection by the Roman Catholic Diocese of Rockville Centre, New York, the debtor, to 33 proofs of claim in its bankruptcy case. The six appeals were assigned or reassigned to Judge Oetken.

Consolidation and Case Administration

Under Federal Rule of Civil Procedure 42(a), the court consolidated the six appeals—23-CV-9210, 23-CV-9271, 23-CV-9365, 23-CV-9463, 23-CV-9516, and 23-CV-9629—for all purposes under case number 23-CV-9210. The court stated that the consolidated appeals retained their separate identities and that consolidation did not affect the parties’ rights. The other five dockets were administratively closed.

The court established a master docket and master file for the consolidated appeal. It directed that all future filings be made in case 23-CV-9210 and required counsel for all parties to file appearances by November 30, 2023. The order also applies to later appeals arising from the same Bankruptcy Court order, which the court may transfer into the consolidated case and administratively close separately.

Requests Concerning a Stay

The Merson Law Appellants and the Slater Appellants asked the court to delay setting a briefing schedule until a Delaware Court of Chancery liquidation and injunction order concerning Arrowood Indemnity Company expired. They argued that their claims were stayed by that order.

The court determined that their claims were not stayed. The Delaware order barred certain actions where Arrowood was obligated to defend. The court noted that Arrowood had disclaimed an obligation to defend the Diocese concerning the proofs of claim and was not defending the Diocese against those claims. The court also determined that the six bankruptcy appeals were not actions at law or in equity covered by the Delaware order because they arose from proofs of claim and objections to those claims in the bankruptcy case.

Show-Cause Order

The court ordered the Anderson Appellants in case 23-CV-9271 to show cause by November 30, 2023, why their appeal should not be dismissed for failing to comply with Federal Rule of Bankruptcy Procedure 8009(a)(1)(B)(i). The order did not itself dismiss that appeal.

Briefing Schedule and Disposition

The court adopted this briefing schedule: appellants’ brief due December 15, 2023; the Diocese’s brief due January 19, 2024; and appellants’ reply brief due February 2, 2024. The appellants were required to file one brief and one reply brief collectively, and the Diocese was required to file one response brief.

The court directed the Clerk of Court to file the order in all six appeal cases, administratively close case numbers 23-CV-9271, 23-CV-9365, 23-CV-9463, 23-CV-9516, and 23-CV-9629, and require all further filings in 23-CV-9210.