THOMAS, Circuit Judge:
Appellants' motion requesting publication of the memorandum disposition filed February 19, 2013, is GRANTED. The memorandum disposition is hereby withdrawn and replaced with the opinion filed concurrently with this order. No further petitions for rehearing or rehearing en banc will be entertained.
The humorist Douglas Adams was fond of saying, "I love deadlines. I love the whooshing sound they make as they fly by." But the law more often follows Benjamin Franklin's stern admonition: "You may delay, but time will not." To paraphrase Émile Zola, deadlines are often the terrible anvil on which a legal result is forged.
This appeal presents the question of whether the Federal Rules of Bankruptcy Procedure afford the Bankruptcy Court the discretion to extend retroactively the deadline for filing nondischargeability complaints when an attorney's computer difficulties cause him to miss the electronic filing deadline. We conclude that the Rules of Bankruptcy Procedure do not allow retroactive extension of the deadline, and we affirm the judgment of the district court.
Amina Anwar and David C. McClanahan (collectively, "Anwar") are former employees of the now-bankrupt Xperex corporation, of which D. Lee Johnson and David Vergeyle were the founders, principal shareholders, and Chief Financial Officer and Chief Executive Officer, respectively. Johnson and Vergeyle filed a voluntary petition in bankruptcy under Chapter 7 of the United States Bankruptcy Code in the District of Arizona.
On November 10 and 24, 2009, Anwar filed timely motions to extend the filing deadlines in Johnson's and Vergeyle's cases, respectively. After a hearing, the bankruptcy court granted the motions and extended the deadline in both cases to April 13, 2010.
Anwar sought to challenge the dischargeability of the debts owed to her based on section 523(a) of the Bankruptcy Code, which excepts from discharge debts obtained by fraud. 11 U.S.C. § 523(a).
By local rule, the Arizona bankruptcy court has established a mandatory electronic filing system, with exceptions not relevant here. U.S. Dist. Ct. for the Dist. of Ariz., Local R. Bankr.P. 5005-2 (2007). Parties access the system through an online portal on the bankruptcy court's website. A creditor seeking to electronically file a nondischargeability complaint must complete two steps: First, the creditor must open an "adversary proceeding" in the bankruptcy court's electronic filing system. Second, the creditor must electronically file a nondischargeability complaint. Under the federal bankruptcy rules, the deadline for all electronic filings is midnight local time on the day set by the relevant order of the bankruptcy court. Fed. R. Bankr.P. 9006(a)(4)(A). Thus, the deadline for Anwar to file her nondischargeability complaints in the Johnson and Vergeyle proceedings was midnight Arizona time on April 13, 2010.
Anwar's counsel did not meet this deadline. Counsel did not initiate the first step of the electronic filing process — opening adversary proceedings — until after 9:00 p.m. on April 13, 2010 — the last day of the extended period for filing nondischargeability complaints in the Johnson and Vergeyle cases.
On May 18, 2010, Johnson and Vergeyle moved to dismiss Anwar's nondischargeability complaints as untimely. Anwar responded with a motion "for relief from untimely filing and to determine timeliness." The bankruptcy court, after a hearing, granted Johnson and Vergeyle's motion, denied Anwar's, and dismissed the complaints with prejudice. The bankruptcy court explained that, under the federal bankruptcy rules and controlling precedent interpreting them, he lacked discretion to grant retroactive extensions of FRBP 4007(c)'s deadline. That the relevant authorities pre-dated the advent of the Arizona bankruptcy court's mandatory electronic filing system did not change the bankruptcy court's analysis. Reviewing de novo, the district court affirmed.
The sole issue on appeal is whether the bankruptcy court erred in refusing to grant Anwar a retroactive extension of the deadline for filing her nondischargeability complaints, so as to render timely her counsel's filings in the wee hours of the morning following the midnight deadline.
"`On appeal from a district court's affirmance of a bankruptcy court decision, we independently review the bankruptcy court's decision, without giving deference to the district court.'" Rosson v. Fitzgerald (In re Rosson), 545 F.3d 764, 770 (9th Cir.2008) (quoting Hebbring v. U.S. Trustee, 463 F.3d 902, 905 (9th Cir. 2006)). "The bankruptcy court's conclusions of law and interpretation of the Bankruptcy Code are reviewed de novo and its factual findings for clear error." Greene v. Savage (In re Greene), 583 F.3d 614, 618 (9th Cir.2009) (citing Salazar v. McDonald (In re Salazar), 430 F.3d 992, 994 (9th Cir.2005)). We review the bankruptcy court's decision to dismiss Anwar's complaints with prejudice for abuse of discretion. See Eminence Capital, LLC v. Aspeon, Inc., 316 F.3d 1048, 1052 (9th Cir.2003).
The bankruptcy court correctly held that the Federal Rules of Bankruptcy Procedure afford it no discretion to extend retroactively the deadline set in FRBP 4007(c) for filing nondischargeability complaints. That rule provides, with an exception not relevant here, that
Fed. R. Bankr.P. 4007(c).
Thus, by its terms, the rule requires creditors such as Anwar to file nondischargeability
Consistent with the plain language of FRBP 4007(c) and 9006(b)(3), we have repeatedly held that the sixty-day time limit for filing nondischargeability complaints under 11 U.S.C. § 523(c) is "strict" and, without qualification, "cannot be extended unless a motion is made before the 60-day limit expires." In re Kennerley, 995 F.2d at 146 (citing Anwiler v. Patchett (In re Anwiler), 958 F.2d 925 (9th Cir. 1992)); see also, e.g., Classic Auto Refinishing, Inc. v. Marino (In re Marino), 37 F.3d 1354, 1358 (9th Cir.1994); Jones v. Hill (In re Hill), 811 F.2d 484, 486 (9th Cir.1987). Accordingly, Anwar was not entitled to a retroactive extension of the filing deadline based on equitable considerations or a local rule of bankruptcy procedure that purports to grant the bankruptcy court discretion to excuse untimely filings.
The bankruptcy court lacked equitable power to grant Anwar relief from her untimely filings. "In bankruptcy cases, a court's equitable power is derived from 11 U.S.C. § 105(a)," In re Anwiler, 958 F.2d at 928 n. 5, which authorizes the court to "issue any order, process, or judgment that is necessary or appropriate to carry out the provisions of [the Bankruptcy Code]," 11 U.S.C. § 105(a). However, "whatever equitable powers remain in the bankruptcy courts must and can only be exercised within the confines of the Bankruptcy Code." Norwest Bank Worthington v. Ahlers, 485 U.S. 197, 206, 108 S.Ct. 963, 99 L.Ed.2d 169 (1988). These confines include deadlines set by the Federal Rules of Bankruptcy Procedure. See Zidell, Inc. v. Forsch (In re Coastal Alaska Lines, Inc.), 920 F.2d 1428, 1432 (9th Cir.1990) (holding that the bankruptcy court may not invoke its equitable power under § 105(a) to enlarge the time for filing a proof of claim under FRBP 3002(c), where FRBP 9006(b)(3) limits the grounds for extension to those stated in FRBP 3002(c) itself). Because granting Anwar a retroactive extension of the filing deadline would conflict with the plain language of FRBP 4007(c) and 9006(b)(3), the bankruptcy court could not rely on its equitable powers to do so. See Childress v. Middleton Arms, L.P. (In re Middleton Arms, L.P.), 934 F.2d 723, 725 (6th Cir.1991) ("bankruptcy
Thus, the fact that Anwar missed the filing deadline by less than an hour is immaterial. See Kelly v. Gordon (In re Gordon), 988 F.2d 1000, 1001 (9th Cir. 1993) (denying equitable relief from FRBP 4007(c) deadline where complaint filed two days late); Moody v. Bucknum (In re Bucknum), 951 F.2d 204, 205-06 (9th Cir. 1991) (same). Nor is the lack of prejudice to the debtors significant. See Baldwin Cnty. Welcome Ctr. v. Brown, 466 U.S. 147, 152, 104 S.Ct. 1723, 80 L.Ed.2d 196 (1984) (holding that lack of prejudice to opposing party "is not an independent basis for invoking [equitable exceptions] and sanctioning deviations from established procedures"). That Anwar seeks to file a fraud claim is similarly irrelevant to the analysis. See In re Kennerley, 995 F.2d at 146. Finally, the advent of mandatory electronic filing systems does not upend this body of precedent, and the fact that Anwar's untimely filing stemmed from difficulty with an electronic filing system is immaterial. Paper filing systems present their own unique opportunities for parties to miss their deadlines; as the bankruptcy court in this case noted, the Arizona bankruptcy court's electronic filing system made it easier for Anwar's counsel to timely file the complaints from his office in Oregon. In short, absent unique and exceptional circumstances not present here, we do not inquire into the reason a party failed to file on time in assessing whether she is entitled to an equitable exception from FRBP 4007(c)'s filing deadline; under the plain language of the rules and our controlling precedent, there is no such exception.
Contrary to Anwar's assertion, the Arizona bankruptcy court's local rules do not provide relief. Pursuant to FRBP 9029(a)(1), federal district courts may promulgate local rules of bankruptcy procedure "which are consistent with — but not duplicative of — Acts of Congress and [the FRBP] and which do not prohibit or limit the use of the Official Forms...." Fed. R. Bankr.P. 9029(a)(1). In addition, FRBP 5005(a)(2) authorizes district courts to promulgate local bankruptcy rules that require electronic filing, provided such rules comport with technical standards established by the Judicial Conference of the United States and allow for "reasonable exceptions." Fed. R. Bankr.P. 5005(a)(2). The bankruptcy court for the District of Arizona, as noted above, has exercised its authority to establish an electronic filing system and has promulgated local procedural rules governing its use. Of relevance to this appeal, Local Rule of Bankruptcy Procedure ("LRBP") 5005-2(n) provides that an attorney or party whose electronic filing "is untimely or otherwise improper may seek appropriate relief from the bankruptcy court upon a showing of good cause or excusable neglect." Local R. Bankr.P. 5005-2(n). Anwar argues that this local rule gives the bankruptcy
However, a local rule of bankruptcy procedure cannot be applied in a manner that conflicts with the federal rules. See Pradier v. Elespuru, 641 F.2d 808, 810 (9th Cir.1981). District and bankruptcy courts have been delegated authority to adopt local rules prescribing the conduct of business but the rules must be consistent with the Bankruptcy Code and the Federal Rules of Bankruptcy Procedure. Sigma Micro Corp. v. Healthcentral.com (In re Healthcentral.com), 504 F.3d 775, 784 (9th Cir.2007). Local bankruptcy rules may not "enlarge, abridge, or modify any substantive right." Sunahara v. Burchard (In re Sunahara), 326 B.R. 768, 782 (9th Cir. BAP 2005) (internal quotation marks and citation omitted). Because the federal bankruptcy rules do not permit an "excusable neglect" exception to FRBP 4007(c)'s filing deadline, LRBP 5005-2(n) cannot provide Anwar relief.
It is of no moment that LRBP 5005-2(n) closely tracks a model rule of local bankruptcy procedure developed by the Judicial Conference of the United States.
We decline Anwar's invitation to revise the Federal Rules of Bankruptcy Procedure, which plainly provide that a party may file a nondischargeability complaint under 11 U.S.C. § 523 outside the sixty-day window established by FRBP 4007(c) if, and only if, she files a motion showing good cause for an extension before the sixty-day period lapses. Fed. R. Bankr.P. 4007(c), 9006(b)(3).
Because neither the federal rules, local rules, nor model rules of bankruptcy procedure gave the bankruptcy court authority to relieve Anwar from the consequences of her untimely filing, we affirm the dismissal of her nondischargeability complaints with prejudice.