Filed: Aug. 28, 2007
Latest Update: Feb. 21, 2020
Summary: United States Court of Appeals Fifth Circuit F I L E D UNITED STATES COURT OF APPEALS FIFTH CIRCUIT August 28, 2007 Charles R. Fulbruge III No. 07-40113 Clerk Summary Calendar In the matter of: JUAN PEQUEÑO, Debtor. JUAN PEQUEÑO, Appellant, versus MICHAEL B. SCHMIDT, Appellee. Appeal from the United States District Court for the Southern District of Texas (1:05-CV-271) Before REAVLEY, SMITH, and BARKSDALE, Circuit Judges. PER CURIAM:* Juan Pequeño challenges, pro se, the district court’s upholdi
Summary: United States Court of Appeals Fifth Circuit F I L E D UNITED STATES COURT OF APPEALS FIFTH CIRCUIT August 28, 2007 Charles R. Fulbruge III No. 07-40113 Clerk Summary Calendar In the matter of: JUAN PEQUEÑO, Debtor. JUAN PEQUEÑO, Appellant, versus MICHAEL B. SCHMIDT, Appellee. Appeal from the United States District Court for the Southern District of Texas (1:05-CV-271) Before REAVLEY, SMITH, and BARKSDALE, Circuit Judges. PER CURIAM:* Juan Pequeño challenges, pro se, the district court’s upholdin..
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United States Court of Appeals
Fifth Circuit
F I L E D
UNITED STATES COURT OF APPEALS
FIFTH CIRCUIT August 28, 2007
Charles R. Fulbruge III
No. 07-40113 Clerk
Summary Calendar
In the matter of: JUAN PEQUEÑO,
Debtor.
JUAN PEQUEÑO,
Appellant,
versus
MICHAEL B. SCHMIDT,
Appellee.
Appeal from the United States District Court
for the Southern District of Texas
(1:05-CV-271)
Before REAVLEY, SMITH, and BARKSDALE, Circuit Judges.
PER CURIAM:*
Juan Pequeño challenges, pro se, the district court’s
upholding a Chapter 7 bankruptcy settlement entered by his Trustee,
Michael Schmidt. On the same day Schmidt filed his appellee brief,
he moved separately to dismiss due to mootness.
“Many courts, including our own ... have employed the concept
of ‘mootness’ to address equitable concerns unique to bankruptcy
*
Pursuant to 5TH CIR. R. 47.5, the court has determined that
this opinion should not be published and is not precedent except
under the limited circumstances set forth in 5TH CIR. R. 47.5.4.
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proceedings”. Matter of Manges,
29 F.3d 1034, 1038 (5th Cir.
1994). In that regard, mootness “is not an Article III inquiry as
to whether a live controversy is presented; rather, it is a
recognition by the appellate courts that there is a point beyond
which they cannot order fundamental changes in [bankruptcy]
actions”.
Id. at 1038-39. This “test for mootness reflects a
court’s concern for striking the proper balance between the
equitable considerations of finality and good faith reliance on a
judgment and the competing interests that underlie the right of a
party to seek review of a bankruptcy order adversely affecting
him”.
Id. at 1039 (quoting First Union Real Estate Equity and
Mort. Inv. v. Club Assoc.,
956 F.2d 1065, 1069 (11th Cir. 1992)).
Pequeño contests the district court’s December 2006 affirmance
of the bankruptcy court’s September 2002 approval of a settlement
between Schmidt, Pequeño’s Chapter 7 Trustee, and the City of
Brownsville, successfully sued by Pequeño pursuant to 42 U.S.C. §
1983. Pequeño contends Schmidt should not have been his Chapter 7
Trustee, because Pequeño moved to convert his Chapter 7 proceeding
to Chapter 13. His motion to convert, however, was denied. More
importantly for determining mootness, Pequeño never moved to stay
the settlement entered by Schmidt and the City of Brownsville. Nor
did he ever request a bond or otherwise act to prevent consummation
of the settlement.
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That has occurred. The funds from Pequeño’s judgment against
Brownsville have been paid to the Trustee, who disbursed them,
together with other bankruptcy-estate funds, to creditors.
Schmidt has acted irreversibly, relying on the settlement. To
allow Pequeño, who never sought a stay, to attack the settlement’s
basis would be inequitable. In re Morningside Mobile Home RV Park,
32 Fed. App’x 130, at *2 (5th Cir. 2002). Therefore, the motion to
dismiss is
GRANTED.
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