BRORBY, Senior Circuit Judge.
The primary issue in this Chapter 7 bankruptcy case is whether the United States Bankruptcy Appellate Panel of the Tenth Circuit (BAP) had jurisdiction to review an "order for relief" entered by a bankruptcy judge serving in the United States Bankruptcy Court for the District of Delaware (Delaware Bankruptcy Court). The Delaware bankruptcy judge entered the order for relief after the effective date of a transfer of venue he had ordered under 28 U.S.C. § 1412 to the United States Bankruptcy Court for the District of Colorado (Colorado Bankruptcy Court).
The parties agree that the order should be vacated on the ground that it is void because it was issued after the transfer was complete and therefore in the absence of jurisdiction, a proposition that finds footing in the case law of both the Third and Tenth Circuits. See Hudson United Bank v. Chase Manhattan Bank of Conn., N.A., 43 F.3d 843, 845 n. 4 (3d Cir.1994) (explaining that transferor court loses jurisdiction once transfer is complete, which occurs "when the files in a case are physically transferred to the transferee court"); Chrysler Credit Corp. v. Country Chrysler, Inc., 928 F.2d 1509, 1516-17, 1520 (10th Cir.1991) (same); see also Cunningham v. BHP Petroleum Gr. Brit. PLC, 427 F.3d 1238, 1245 (10th Cir.2005) (stating that judgment is void if court lacked subject matter jurisdiction); Union Switch & Signal Div. Am. Standard Inc. v. United Elec., Radio & Mach. Workers of Am., Local 610, 900 F.2d 608, 612 n. 1 (3d Cir.1990) (same). However, the BAP concluded that it did not have jurisdiction because the second sentence of 28 U.S.C. § 158(a) provides that an appeal of a decision by a bankruptcy judge "shall be taken only to the district court for the judicial district in which the bankruptcy judge is serving."
An involuntary Chapter 7 case may be commenced by "three or more entities, each of which is ... a holder of a claim against such person that is not contingent as to liability or the subject of a bona fide dispute." 11 U.S.C. § 303(b)(1). Appellees Centennial River Corp., f/k/a Immedient Corp.; Axiom Systems, Inc.; and Johnson-Laird, Inc. (together, the Petitioning Creditors) filed their involuntary petition against HealthTrio, Inc., in the Delaware Bankruptcy Court. HealthTrio answered the petition and filed counterclaims, but it also moved to dismiss the petition and to transfer venue to the Colorado Bankruptcy Court. The transfer motion was based on 28 U.S.C. § 1412, which authorizes a transfer of venue "in the interest of justice or for the convenience of the parties." HealthTrio claimed that although it was a Delaware corporation in "delinquent" status, its books, records, principal offices, assets, business operations, and some of its officers were located in Colorado. App. at 48-49.
After a hearing on the motion to dismiss, the Delaware bankruptcy judge denied it in a written order entered as Docket No. 19. Petitioning Creditors then moved for summary judgment on the involuntary petition, requesting that an order for relief be entered against HealthTrio.
With this understanding of an order for relief, we return to the procedural history of our case. The Delaware bankruptcy judge held a hearing on September 15, 2009, at which he stated "[i]t appears to me that an Order for Relief ... should be entered in this case," but there is "not ... a sufficient record before me today to answer that question." App. at 148. Although the judge repeated his belief that an order for relief was appropriate, see id. at 152, he ultimately ordered discovery pertaining to the motion to transfer, set a hearing on that motion, and set a trial on the merits for October 7, 2009, stating that "if the parties can come to agreement on the issue of the order for relief, then I would expect that under certification. Otherwise, we'll deal with it on the 7th," id. at 154.
After a continuance and a hearing on a discovery dispute, the judge held another hearing on November 12, 2009, at which the parties again presented a discovery dispute. The judge took matters under advisement and stated his intent to review the record in order to "understand the full context of these proceedings." Id. at 178. The judge informed the parties that he would either issue rulings on pending motions or set up another hearing, and that he would issue an order on the discovery dispute. The judge did not mention or issue an order for relief.
The same day as the hearing, November 12, the Delaware bankruptcy judge entered an order granting HealthTrio's motion to transfer venue to the Colorado Bankruptcy Court pursuant to 28 U.S.C. § 1412. The judge referred to "an order for relief having been entered in this involuntary case [Docket No. 19]" as one of the factors that informed his decision. Id. at 169 (brackets in original). As noted, however, Docket No. 19 was the order denying HealthTrio's motion to dismiss, not an order for relief.
On November 16, 2009, the case was docketed in the Colorado Bankruptcy Court. The transmittal letter sent by the Delaware Bankruptcy Court, dated the same day, states that "[d]ocuments were electronically filed and can be viewed through the Court's ecf [electronic case filing] link." Id. at 180.
Id. at 184.
The order for relief was docketed in both the Delaware Bankruptcy Court and the Colorado Bankruptcy Court, and HealthTrio filed timely notices of appeal from that order in the United States District Court for the District of Delaware and in the United States District Court for the District of Colorado.
In the Colorado appeal, HealthTrio asserted that the BAP had jurisdiction under 28 U.S.C. § 158(a)(1) and presented its arguments on the merits, including that the Delaware Bankruptcy Court lost jurisdiction once the case was docketed in the Colorado Bankruptcy Court.
Before considering whether the BAP had jurisdiction over the Delaware Bankruptcy Court's order for relief, we first must establish that our jurisdiction is proper under 28 U.S.C. § 158(d)(1), which provides "[t]he courts of appeals shall have jurisdiction of appeals from all final decisions, judgments, orders, and decrees entered under subsections (a) and (b) of this section."
Strong v. W. United Life Assurance Co. (In re Tri-Valley Distrib., Inc.), 533 F.3d 1209, 1214 (10th Cir.2008) (citation omitted). Although the analysis hinges on the effect of the BAP order, it also requires considering whether the bankruptcy court order is final. The court in In re Tri-Valley Distributing listed "several combinations of final and nonfinal orders by the bankruptcy judge and on appeal to the BAP" that determine whether this court has jurisdiction under § 158(d). Id. One combination giving rise to circuit court jurisdiction occurs when the BAP affirms a final order of a bankruptcy judge because "no further proceedings would be contemplated in the bankruptcy court." Id. The Tri-Valley court did not give an example where, as here, the BAP dismisses an appeal for lack of jurisdiction, but the effect is the same as an affirmance — it leaves in place the order appealed, here the order for relief. Thus, this court must look to whether the order for relief is final "[i]n the bankruptcy context," which requires looking not at the "overall bankruptcy case, but rather the particular adversary proceeding or discrete controversy pursued within the broader framework cast by
We have found only two circuit cases that have considered whether an order for relief in an involuntary case is a final order for purposes of circuit court jurisdiction. In the first, In re Mason, the Ninth Circuit concluded that an order for relief is final and appealable because, as an "adjudication" that is a "conclusive determination of the debtor's status in bankruptcy," it is "res judicata between the actual parties to the proceeding to all the facts and subsidiary questions of law on which it is based." 709 F.2d at 1315-16.
In the second case to consider whether an order for relief is final, McGinnis v. Jenkins & Associates, Inc. (In re McGinnis), 296 F.3d 730, 731 (8th Cir.2002), the Eighth Circuit followed Mason. The McGinnis court characterized Mason as standing for the proposition that an order for relief is a final order for § 158(d) purposes "because it is a final adjudication of the debtor's bankruptcy status that subjects the debtor's assets to involuntary liquidation." Id.
We consider the reasoning of these cases sound, and therefore conclude that the order for relief is a final order, and the BAP's dismissal of the appeal from that order is appealable under the framework set out in In re Tri-Valley Distributing.
Before turning to the BAP's jurisdiction, we must first ensure that the transfer was complete before the Delaware Bankruptcy Court filed the order for relief, as this is a controlling procedural fact. Our rule is that "[t]he date the papers in the transferred case are docketed in the transferee court, not the date of the transfer order, ... forms the effective date that jurisdiction in the transferor court is terminated." Chrysler Credit Corp., 928 F.2d at 1517. This rule, however, has limited utility in a case like this one, where the parties filed electronically and, apparently, no physical papers were docketed in the transferee court. However, the Delaware Bankruptcy Court's transmittal letter informed the Colorado Bankruptcy Court of the November 12, 2009 transfer order, and directed the Colorado court to the Delaware court's website, where the electronically filed documents could be retrieved. Under these circumstances, we conclude that the date the transmittal letter was docketed in the transferee court, November 16, 2009, was the effective date of the transfer. The
We next must decide whether the BAP had jurisdiction over an appeal, filed in the United States District Court for the District of Colorado, of a post-transfer order of a bankruptcy judge serving in the District of Delaware under § 158(a), which again requires that an appeal be "taken only to the district court for the judicial district in which the bankruptcy judge is serving." Based on the long-standing principle that a judgment entered in the absence of jurisdiction is void, HealthTrio contends that § 158(a) does not require an appeal to be taken in the district where the order was entered. Instead, HealthTrio argues, the statute directs that an appeal be taken in the district where the presiding bankruptcy judge is serving, i.e., a bankruptcy judge with jurisdiction, which apparently is determined at the time the appeal is filed. Aplt. Opening Br. at 18-19. We disagree.
Because the BAP's jurisdictional dismissal rested on statutory interpretation, our review is de novo. See Karr v. Hefner, 475 F.3d 1192, 1200 (10th Cir. 2007). "It is our primary task in interpreting statutes to determine congressional intent, using traditional tools of statutory construction." St. Charles Inv. Co. v. Comm'r, 232 F.3d 773, 776 (10th Cir.2000) (internal quotation marks omitted). "It is a well established law of statutory construction that, absent ambiguity or irrational result, the literal language of a statute controls." Edwards v. Valdez, 789 F.2d 1477, 1481 (10th Cir.1986). "[I]f the statutory language is clear, our analysis ordinarily ends." Russell v. United States, 551 F.3d 1174, 1178 (10th Cir.2008) (internal quotation marks omitted). "If the statute's plain language is ambiguous as to Congressional intent, we look to the legislative history and the underlying public policy of the statute." Id. (internal quotation marks omitted).
Given that the transfer of venue in this case was completed before entry of the order for relief, the literal language of § 158(a) provides little help, and we have found nothing significant in the legislative history or published case law. A leading bankruptcy treatise characterizes § 158(a)'s territorial mandate as "self-explanatory." 1 Alan N. Resnick & Henry J. Sommer, Collier On Bankruptcy ¶ 5.02[2] (16th ed.2011). This view, however, proves too little when applying § 158(a)'s mandate in a case transferred under § 1412 since the jurisdictional statute does not plainly contemplate such a scenario. We do, however, note the statute's territorial limitation may serve a clarifying function when a bankruptcy judge appointed to serve in one judicial district temporarily serves in or is transferred to another judicial district pursuant to 28 U.S.C. §§ 152(d) or 155(a).
Because we find no firm answers in the statutory language, the legislative history, the underlying public policy, the treatises, or the case law regarding § 158(a) in the context of a § 1412 transfer, we turn to analogous statutes outside the bankruptcy context. Cf. True Oil Co. v. Comm'r, 170 F.3d 1294, 1300 (10th Cir.1999) (stating that, "[w]hen interpreting statutory language, this court looks not only at the specific statute at issue, but also examines that statute in context with related statutes"). Specifically, we look to 28 U.S.C. § 1294(1), which establishes the geographic scope of federal circuit court jurisdiction over appeals from the district courts, and 28 U.S.C. § 1404(a), the change-of-venue statute applicable in civil actions.
The territorial limitations in § 158(a) and § 1294(1) are analogous. Thus, although McGeorge involved this court's jurisdiction to review pre-transfer decisions of an extra-circuit district court, we see no reason to distinguish it here, where HealthTrio seeks Tenth Circuit BAP review of a post-transfer order of an extra-district bankruptcy judge. Applying this circuit's territorial view of appellate jurisdiction in McGeorge, we hold that § 158(a)'s mandate that an appeal of a decision by a bankruptcy judge "shall be taken only to the district court for the judicial district in which the bankruptcy judge is serving" forecloses Tenth Circuit BAP review of the Delaware bankruptcy judge's order for relief because the issuing bankruptcy judge was serving outside of the judicial district (Colorado) where the appeal was filed.
This does not leave the parties without a remedy. In Chrysler, we stated that although "traditional principles of law of the case counsel against the transferee court reevaluating the rulings of the transferor court," a "prior ruling of a transferor court... may be reconsidered when," among other things, "a clear error has been committed or to prevent manifest injustice." 928 F.2d at 1516 (emphasis added). Under Chrysler, it appears the Colorado Bankruptcy Court could reevaluate the order
For the foregoing reasons, we affirm the judgment of the United States Bankruptcy Appellate Panel of the Tenth Circuit.