Filed: Jul. 22, 2014
Latest Update: Mar. 02, 2020
Summary: Case: 13-15422 Date Filed: 07/22/2014 Page: 1 of 7 [DO NOT PUBLISH] IN THE UNITED STATES COURT OF APPEALS FOR THE ELEVENTH CIRCUIT _ No. 13-15422 Non-Argument Calendar _ D.C. Docket Nos. 5:13-cv-00191-ACC; 6:12-bkc-01140-KSJ In Re: JOSEPH P. BROWN, JR., TERRI LYNN BROWN, Debtors. _ JOSEPH P. BROWN, JR., TERRI LYNN BROWN, Plaintiffs - Appellants, versus JPMORGAN CHASE BANK, NA, Defendant - Appellee. _ Appeal from the United States District Court for the Middle District of Florida _ (July 22, 2014
Summary: Case: 13-15422 Date Filed: 07/22/2014 Page: 1 of 7 [DO NOT PUBLISH] IN THE UNITED STATES COURT OF APPEALS FOR THE ELEVENTH CIRCUIT _ No. 13-15422 Non-Argument Calendar _ D.C. Docket Nos. 5:13-cv-00191-ACC; 6:12-bkc-01140-KSJ In Re: JOSEPH P. BROWN, JR., TERRI LYNN BROWN, Debtors. _ JOSEPH P. BROWN, JR., TERRI LYNN BROWN, Plaintiffs - Appellants, versus JPMORGAN CHASE BANK, NA, Defendant - Appellee. _ Appeal from the United States District Court for the Middle District of Florida _ (July 22, 2014)..
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Case: 13-15422 Date Filed: 07/22/2014 Page: 1 of 7
[DO NOT PUBLISH]
IN THE UNITED STATES COURT OF APPEALS
FOR THE ELEVENTH CIRCUIT
________________________
No. 13-15422
Non-Argument Calendar
________________________
D.C. Docket Nos. 5:13-cv-00191-ACC; 6:12-bkc-01140-KSJ
In Re: JOSEPH P. BROWN, JR.,
TERRI LYNN BROWN,
Debtors.
________________________________________________________
JOSEPH P. BROWN, JR.,
TERRI LYNN BROWN,
Plaintiffs - Appellants,
versus
JPMORGAN CHASE BANK, NA,
Defendant - Appellee.
________________________
Appeal from the United States District Court
for the Middle District of Florida
________________________
(July 22, 2014)
Case: 13-15422 Date Filed: 07/22/2014 Page: 2 of 7
Before PRYOR, MARTIN and COX, Circuit Judges.
PER CURIAM:
In this bankruptcy appeal, Joseph Brown, Jr. and Terri Lynn Brown (the
“Browns”) appeal the district court’s affirmance of the bankruptcy court’s orders
abstaining from hearing their adversary proceeding and voluntarily dismissing their
bankruptcy case. The Browns contend that the bankruptcy court erred in
abstaining because the motion to abstain was filed past the deadline provided in the
bankruptcy court’s local rules. The Browns also contend that the bankruptcy court
coerced them into dismissing their bankruptcy case. Because we find no merit in
either contention, we affirm.
I. Facts and Procedural History
A. Bankruptcy Court Proceedings
The Browns filed a pro se Chapter 13 petition for bankruptcy. JPMorgan
Chase Bank, N.A. (“Chase”) subsequently filed a proof of claim alleging
ownership of a note and mortgage on the Browns’s property. The Browns objected
to Chase’s proof of claim and asserted that Chase lacked standing to enforce the
note and mortgage. The bankruptcy court directed the parties to mediate their
dispute, but mediation ended in an impasse.
Subsequently, the Browns initiated a separate adversary proceeding against
Chase contending that Chase lacked authority to enforce the note and mortgage.
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The bankruptcy court consolidated the Chapter 13 proceeding and the adversary
proceeding. Chase moved to dismiss the adversary complaint or, alternatively, for
voluntary abstention pursuant to 28 U.S.C. § 1334. Chase argued abstention was
appropriate because the issue of whether Chase had standing to foreclose was
primarily a matter of state law and Chase was already litigating this issue against
the Browns in a pending foreclosure action in state court.
The bankruptcy court denied Chase’s motion to dismiss but granted the
motion to abstain (“the abstention order”). The bankruptcy court concluded that
abstention was appropriate because: (1) the Browns’s claims were matters of state
law; (2) the claims were the subject of a foreclosure action that had been pending
in state court when the bankruptcy case was filed; and (3) allowing the state court
to resolve the mortgage issues would not adversely affect the Browns’s efforts in
their Chapter 13 case. The Browns moved for reconsideration of the abstention
order, contending that Chase had not filed its motion for abstention within the time
permitted by Local Rule 5011.
During a hearing, the bankruptcy court denied the motion for
reconsideration. The court acknowledged that Chase’s motion for abstention was
untimely under Local Rule 5011, but concluded that it nevertheless had the power
to abstain under its sua sponte authority and federal law. The court then expressed
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concern with requiring the Browns to continue making payments each month to the
mortgage holder under the Chapter 13 Plan when the foreclosure issues were
returning to state court. The court specifically asked the Browns:
Is there any reason why you care to stay in the Chapter 13 case?
That’s really my question to you. If I’m not going to let you resolve
the dispute here, which I’m not – with all due deference and out of
respect, I’m not – do you even want to keep this case alive? I mean, I
can get you all that money back and you can – I’m not going to
impose an injunction against re-filing if you need to come back.
(R. at 285.) Mr. Brown responded, “Yes, your honor. That would be totally fair.”
Id. Accordingly, the bankruptcy court denied the motion for reconsideration in the
adversary proceeding, dismissed the Chapter 13 proceeding, and directed the
trustee to return all monies already paid by the Browns toward the mortgage debt.
The Browns appealed to the district court the denial of their motion for
reconsideration of the abstention order and the dismissal of the Chapter 13
proceeding.
B. District Court Proceedings
On appeal to the district court, the Browns argued pro se that the bankruptcy
court should not have abstained from their adversary proceeding, because they had
a right to have their claims resolved in bankruptcy. They argued the dismissal of
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their Chapter 13 proceeding was improper, because the bankruptcy court had
coerced them into accepting the dismissal.
The district court affirmed, finding the bankruptcy court did not abuse its
discretion in deciding to abstain from hearing the Browns’s adversary proceeding.
The district court found that the bankruptcy court did not apply the wrong legal
standard or use improper procedures. In addition, none of the bankruptcy court’s
factual findings in support of the decision to abstain were found to be clearly
erroneous.
Regarding the dismissal of the Chapter 13 case, the district court found the
record did not support the Browns’s contention that the bankruptcy court had
coerced them to accept the dismissal. Rather, the transcript from the hearing on
the motion for reconsideration demonstrated that the Browns had agreed that a
dismissal of the Chapter 13 case, without an injunction, would be fair. The
Browns contend they had been intimidated during the hearing: because they had to
wait for an hour and a half; because there was a star next to their name on the
docket sheet; because the other debtors and attorneys left the courtroom; and
because a federal marshal came in the room and sat near the door. The district
court concluded that, taken together, those facts merely suggested the bankruptcy
court was in session that day.
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The Browns now appeal the district court’s final judgment affirming the
bankruptcy court’s abstention orders and dismissal order. 1
II. DISCUSSION
A. We lack jurisdiction to review the bankruptcy court’s decision to abstain
under 28 U.S.C. § 1334(c)(1).
28 U.S.C. § 1334(d) provides that “[a]ny decision to abstain or not to abstain
made under section (c) . . . is not reviewable by appeal or otherwise by the court of
appeals . . .” Accordingly, we lack jurisdiction to consider this issue.
B. The bankruptcy court did not err by dismissing the Browns’s case.
The Browns contend that the district court erred by voluntarily dismissing
their Chapter 13 case. According to the Browns, even though they agreed to
dismissal, the bankruptcy court coerced them into accepting the dismissal. We
review “the bankruptcy court's order independently of the district court, reviewing
conclusions of law de novo and factual findings under a clearly erroneous
standard.” In re Bilzerian,
153 F.3d 1278, 1281 (11th Cir. 1998).
1
In the “Statement of the Issues” portion of their initial brief, the Browns also argue that
the district judge should have recused herself from the proceedings based upon her investment
relationship with Berkshire Hathaway, Inc. and that the district court erred by denying their
motion to stay the bankruptcy court’s orders. The Browns have failed to provide any supporting
argument or authority regarding these issues, and, thus, they have abandoned them. See Sapuppo
v. Allstate Floridian Ins. Co.,
739 F.3d 678, 681 (11th Cir. 2014) (holding “an appellant
abandons a claim when he either makes only passing references to it or raises it in a perfunctory
manner without supporting arguments and authority”).
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As the district court noted, the facts set forth by the Browns to establish
coercion—the delay in entering the courtroom, the star next to their name, the
removal of other debtors and attorneys, and the presence of a federal marshal—
indicate only that the bankruptcy court was in session that day. A review of the
transcript from the hearing demonstrates the bankruptcy court did not use
threatening or manipulative language or otherwise act in a coercive manner.
Rather, the bankruptcy court thoroughly explained its decision and gave the
Browns an opportunity to ask questions or make comments.
Accordingly, the bankruptcy court did not coerce the Browns and properly
dismissed the Chapter 13 proceeding.
AFFIRMED.
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