Filed: Dec. 26, 2019
Latest Update: Mar. 03, 2020
Summary: Case: 19-10643 Date Filed: 12/26/2019 Page: 1 of 5 [DO NOT PUBLISH] IN THE UNITED STATES COURT OF APPEALS FOR THE ELEVENTH CIRCUIT _ No. 19-10643 Non-Argument Calendar _ D.C. Docket No. 8:18-cv-01439-JSM; 8:16-bkc-08167-MGW In Re: WESTPORT HOLDINGS TAMPA, LIMITED PARTNERSHIP d.b.a. University Village, WESTPORT HOLDINGS TAMPA II, LIMITED PARTNERSHIP, Debtors. _ IMH HEALTHCARE LLC, ELI FREIDEN, its managing member, BVM UNIVERSITY VILLAGE LLC, COMPLIANCE CONCEPTS LLC, its managing member, REBECCA B
Summary: Case: 19-10643 Date Filed: 12/26/2019 Page: 1 of 5 [DO NOT PUBLISH] IN THE UNITED STATES COURT OF APPEALS FOR THE ELEVENTH CIRCUIT _ No. 19-10643 Non-Argument Calendar _ D.C. Docket No. 8:18-cv-01439-JSM; 8:16-bkc-08167-MGW In Re: WESTPORT HOLDINGS TAMPA, LIMITED PARTNERSHIP d.b.a. University Village, WESTPORT HOLDINGS TAMPA II, LIMITED PARTNERSHIP, Debtors. _ IMH HEALTHCARE LLC, ELI FREIDEN, its managing member, BVM UNIVERSITY VILLAGE LLC, COMPLIANCE CONCEPTS LLC, its managing member, REBECCA BA..
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Case: 19-10643 Date Filed: 12/26/2019 Page: 1 of 5
[DO NOT PUBLISH]
IN THE UNITED STATES COURT OF APPEALS
FOR THE ELEVENTH CIRCUIT
________________________
No. 19-10643
Non-Argument Calendar
________________________
D.C. Docket No. 8:18-cv-01439-JSM; 8:16-bkc-08167-MGW
In Re: WESTPORT HOLDINGS TAMPA, LIMITED PARTNERSHIP
d.b.a. University Village,
WESTPORT HOLDINGS TAMPA II, LIMITED PARTNERSHIP,
Debtors.
__________________________________________________________________
IMH HEALTHCARE LLC,
ELI FREIDEN,
its managing member,
BVM UNIVERSITY VILLAGE LLC,
COMPLIANCE CONCEPTS LLC,
its managing member,
REBECCA BARTLE,
as managing member of Compliance Concepts LLC,
J.F. CONSULTANTS LLC,
SHABSE FUCHS,
its managing member,
Plaintiffs-Appellants,
versus
JEFFREY W. WARREN,
Esq. as Liquidating Trustee for Westport Holdings Tampa,
Case: 19-10643 Date Filed: 12/26/2019 Page: 2 of 5
Limited Partnership,
WESTPORT HOLDINGS TAMPA II, LIMITED PARTNERSHIP,
Defendants-Appellees.
________________________
Appeal from the United States District Court
for the Middle District of Florida
________________________
(December 26, 2019)
Before TJOFLAT, HULL, and MARCUS, Circuit Judges.
PER CURIAM:
I.
Westport Nursing Tampa (“WNT”) is a three-member limited liability
company. The managing member is IMH Healthcare, LLC (“IMH”), which is
owned by Eli Freiden. The second member is BVM University Village, LLC
(“BVM”), which is owned by another LLC—Compliance Concepts—that is
controlled by Rebecca Bartle. The third and final member is J.F. Consultants, LLC
(“JFC”), which is owned by Shabse Fuchs. Together, IMH Healthcare (and
Freiden), BVM (and Compliance Concepts/Bartle), and JFC (and Fuchs), are the
Appellants in this case. They appeal the District Court’s order affirming the
Bankruptcy Court’s enforcement order, which required them to transfer their
membership interests in WNT pursuant to the Bankruptcy Court’s confirmation
order. We affirm.
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II.
A.
There are two key orders in this case: (1) the Bankruptcy Court’s
confirmation order, and (2) the Bankruptcy Court’s enforcement order.
First, the United States Bankruptcy Court for the Middle District of Florida,
Tampa Division, entered a confirmation order that required the Appellants to
transfer their membership interests in WNT to two limited partnerships. JFC
(Fuchs) transferred its interest, but IMH (Freiden) and BVM (Bartle) refused to
transfer their interests.
Second, when the liquidating trustee, Jeffrey Warren, moved to compel the
transfer following this refusal, the Court entered an enforcement order that
required the Appellants to transfer their WNT interests according to the terms of
the confirmation order. At a hearing on the motion to compel the transfer, the
Appellants argued that an evidentiary hearing was required to determine whether
they had waived certain conditions precedent to their obligation to transfer the
interests. The Bankruptcy Court declined to hold an evidentiary hearing, finding
that the Appellants had notice that those conditions no longer needed to be
satisfied, and that the Appellants were required to transfer their WNT interests
pursuant to the confirmation order. The Court therefore entered an enforcement
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Case: 19-10643 Date Filed: 12/26/2019 Page: 4 of 5
order that authorized Warren, as liquidating trustee, to transfer IMH’s and BVM’s
membership interests to the two limited partnerships.
The Appellants then appealed the Bankruptcy Court’s enforcement order to
the District Court for the Middle District of Florida. The District Court affirmed
the enforcement order because the Bankruptcy Court’s confirmation order—not
the enforcement order—was the order that required the transfer, and the Appellants
had not appealed the confirmation order before it became a binding, final
judgment. Therefore, the District Court found that the Appellants’ appeal of the
enforcement order was an impermissible collateral attack on the confirmation
order. We agree with the District Court, as discussed below.
B.
“A bankruptcy court’s confirmation order that is final and no longer subject
to appeal [is] ‘res judicata to the parties and those in privity with them.’” Cabuya
Cherokee, SA v. Vogt,
532 B.R. 383, 390 (M.D. Fla. 2015) (quoting Travelers
Indem. Co. v. Bailey,
557 U.S. 137, 152,
129 S. Ct. 2195, 2205 (2009)). In other
words, once a confirmation order is no longer appealable, either because the
appellants have exhausted their direct appeal or the deadline to appeal has passed,
it becomes a final, binding judgment. See
Bailey, 557 U.S. at 152–53, 129 S. Ct. at
2205–06. And once the confirmation order is final, any alleged defects in it cannot
be collaterally attacked by challenging the bankruptcy court’s order enforcing the
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confirmation order. See
id. For example, a final confirmation order cannot be
attacked by challenging an order enforcing it even if the confirmation order is
clearly defective because the bankruptcy court lacked subject matter jurisdiction to
enter the confirmation order in the first place.
Id.
Here, the Appellants impermissibly seek to challenge the terms of the
Bankruptcy Court’s confirmation order by appealing the Court’s enforcement
order. Therefore, their appeal fails. See
id.
The Appellants were on notice after the hearing on the motion to compel the
transfer of the WNT interests that the confirmation order required them to transfer
their interests without regard to any previously contemplated conditions precedent.
At that time, the Appellants still had six days to appeal the confirmation order. But
they did not do so. And once the deadline to appeal the confirmation order passed,
the order became final, and the Appellants cannot now attack the confirmation
order by challenging the enforcement order. Therefore, the District Court properly
dismissed the appeal of the enforcement order.
Accordingly, we affirm.
AFFIRMED.
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