ALAN C. KAY, SR., District Judge.
For the reasons discussed below, the Court DENIES Defendants Ronald and Brenda Statons' Rule 59(e) Motion to Alter, Amend or Vacate Order Confirming Sale and Denying Motion for Leave to File Interlocutory Appeal and Motion to Stay Order Confirming Sale ("May 3, 2018 Motion"). ECF No. 357.
For purposes of the current motion, the Court discusses only those facts relevant to Defendants Ronald ("Mr. Staton") and Brenda ("Mrs. Staton" and together with Mr. Staton, the "Statons") Statons' May 3, 2018 Motion.
On April 6, 2018, the Court held a hearing on whether the foreclosure sale in this matter should be confirmed, the Commissioner's Report approved, and the issues of priority and disbursement of the foreclosure sale proceeds. ECF No. 327. At the conclusion of the April 6, 2018 hearing, the Court granted the Government's Motion for an Order Confirming Sale, Approving Commissioner's Report and Distributing Proceeds to the extent that it: (1) confirmed the sale; (2) approved the Commissioner's Report; and (3) approved the Government's proposed order of priority for future disbursements.
That same day, on April 6, 2018, the Statons filed a hand-written notice of appeal. ECF No. 328. The notice of appeal cited no statutory or legal authority and appealed from the Court's "Order Confirming Sale, Approving Commissioner's Report and Distributing Proceeds. . . ."
On April 10, 2018, the Court entered a minute order stating that it would construe the Statons' April 6, 2018 notice of appeal as a motion to permit an interlocutory appeal under 28 U.S.C. § 1292. ECF No. 329. The minute order scheduled a hearing on the motion for April 18, 2018, and directed the parties to file any memoranda in support or opposition by Friday, April 13, 2018.
On April 18, 2018, the Court held a hearing on the Statons' motion to permit an interlocutory appeal. ECF No. 340. At the hearing, the Court proposed that the escrow closing set for April 27, 2018, be continued to May 11, 2018, in order to provide the Statons additional time to move out of their home (the "Residence"). The purchaser of the Residence, who was present at the April 18, 2018 hearing, agreed to the proposed continuation to accommodate the Statons. Id.; ECF No. 343. Accordingly, the Court entered a minute order on April 19, 2018, rescheduling the escrow closing originally scheduled for April 27, 2018 to May 11, 2018. ECF No. 343.
Following the hearing, on April 19, 2018, the Court issued an Order Denying Defendants Ronald and Brenda Statons' Motion for Leave to File an Interlocutory Appeal ("April 19, 2018 Order"). ECF No. 344. In Section IV of the Court's April 19, 2018 Order, the Court discussed the requirements to stay proceedings by supersedeas bond and made an initial estimate that the appropriate amount of a supersedeas bond should be $798,000.00. ECF No. 344 at 39-40 & n.13. The Court also stated that the parties would have an opportunity to object to the proposed supersedeas bond amount.
On April 24, 2018, the Statons filed a Motion to Stay Order Confirming Sale Pending Appeal. ECF No. 347. The Statons requested an order granting a stay as of right pending appeal under Federal Rule of Civil Procedure 62(d), conditioned upon a final determination of a supersedeas bond and the amount of the bond.
On April 26, 2018, however, the United States Court of Appeals for the Ninth Circuit dismissed the Statons' appeal from the April 10, 2018 Order confirming the sale (as well as the Statons' separate attempted appeal from an earlier order), finding that the orders challenged in the respective appeals were neither final nor appealable.
On May 3, 2018, the Statons filed the current motion seeking to alter, amend or vacate the Court's April 19, 2018 Order denying their motion for leave to file an interlocutory appeal. ECF No. 357. Under Local Rule 7.2(e), the Court finds it appropriate to decide the Statons' May 3, 2018 Motion without a hearing.
Although Rule 59(e) permits a district court to reconsider and amend a previous order, the rule offers an "extraordinary remedy, to be used sparingly in the interests of finality and conservation of judicial resources."
The Statons do not argue that newly discovered evidence or an intervening change in the controlling law entitles them to relief under Rule 59(e). They seem instead to claim that the Court committed clear error "in preventing [them] from proceeding on appeal and from seeking a stay pending appeal." May 3, 2018 Motion at 4. For the reasons stated in the April 10, 2018 Order and April 19, 2018 Order, the Court finds the Statons' arguments to be without merit and denies their May 3, 2018 Motion.
The Statons first contend that "the Order denying certification or leave to permit the interlocutory appeal confirming the sale should be vacated in that other courts including the Hawaii State Court have held an order confirming a sale to be an appealable order."
In as much as the Ninth Circuit has dismissed the Statons' attempted appeal from the April 10, 2018 Order "because the order challenged in the appeal is not final or appealable," ECF No. 350, the Court does not find that it clearly erred in denying the Statons' motion for leave to file an interlocutory appeal from that same order.
The April 19, 2018 Order, moreover, addressed and rejected the authorities on which the Statons' current motion relies.
Further, and as stated above, the Statons contend that the "Court erred in preventing the Statons from proceeding on appeal. . . ." May 3, 2018 Motion at 4. The Court again notes that the Ninth Circuit dismissed the Statons' attempted appeal "because the order challenged in the appeal is not final or appealable." ECF No. 350. If the Statons were correct that they were entitled to appeal the April 10, 2018 Order, this Court's April 19, 2018 Order would not have prevented their appeal from proceeding.
The Statons also claim that the Court erred "preventing [them] from . . . seeking a stay pending appeal." May 3, 2018 Motion at 4. The Court set forth the requirements to stay proceedings under Federal Rule of Civil Procedure 62(d) in the April 19, 2018 Order. ECF No. 344 at 39-40 & n.13. There, the Court explained that Rule 62(d) entitled the Statons to obtain a stay pending appeal by posting (and having the Court approve) a supersedeas bond.
This Court has not issued an order allowing the Statons to appeal, and the Ninth Circuit dismissed the Statons' attempted appeal from the April 10, 2018 Order. Because the Statons have no order from which to appeal, therefore, Rule 62(d) does not entitle them to a stay, even if they were able to post an adequate bond and obtain Court approval.
Finally, to the extent the Statons' seek to vacate the Court's April 10, 2018 Order confirming the foreclosure sale, the Court denies their motion for the reasons stated in that order and the April 19, 2018 Order.
For the foregoing reasons, the Court DENIES Defendants Ronald and Brenda Statons' Rule 59(e) Motion to Alter, Amend or Vacate Order Confirming Sale and Denying Motion for Leave to File Interlocutory Appeal and Motion to Stay Order Confirming Sale.
IT IS SO ORDERED.
In addition, appellate jurisdiction over appeals in foreclosure cases in Hawaii is further defined by HRS § 667-51. HRS § 667-51(a) provides: