United States District Court, W.D. Pennsylvania
ROBERT C. MITCHELL, Magistrate Judge.
Before the Court is Debtor's (hereinafter, "Rock Airport's") Emergency Motion to Stay Proceedings Pending Appeal Pursuant to Bankruptcy Rule 8005 (doc. no. 1) and Appellee's Response thereto. Doc. no. 2. This Court denied Rock Airport's Emergency Motion on August 22, 2014, by way of a text Order. This Court now writes this Memorandum Opinion to explain the reason it did so.
As noted in the August 22, 2014 text Order, this Court is familiar with various issues surrounding Rock Airport's Bankruptcy matter as it pertains to Management Science Associates, Inc., (hereinafter "MSA") due to previous appellate proceedings this Court has reviewed. See docket nos. 2:14-cv-00085 (on appeal to USCA 14-2720); 2:14-00086 (on appeal to USCA 14-2721); and 2:14-cv-00091 (on appeal to USCA at docket no. 14-2722). The Court entered its Orders in the three prior appellate matters on April 11 and 14, 2014.
According to the Parties to the instant Emergency Motion, on June 20, 2014, MSA filed a Plan of Reorganization with the Bankruptcy Court as did Rock Airport. These two Plans are presently being submitted to creditors of the estate. Doc nos. 1-2, ¶ 1.
The Parties also agree that prior to filing its plan on June 20, 2014, MSA acquired the claim of "Priscilla Grdn Living Trust" (hereinafter "Priscilla Trust") and thereby established standing to file its Plan. Doc nos. 1-2, ¶ 2. The Parties further agree that Rock Airport objected to MSA's standing to file the Priscilla Trust claim. Doc nos. 1-2, ¶ 3.
On August 8, 2014, the Bankruptcy Court entered two Memorandum Orders in favor of MSA holding that MSA had standing to file the plan and denying Rock Airport's Objection to the claim. Doc nos. 1-2, ¶ 3. Rock Airport has appealed both of the Bankruptcy Court's Orders in this regard. Doc nos. 1-2, ¶ 4. The Bankruptcy Court's Orders on August 8, 2014 were significant because the Court, upon determining that MSA had standing, could then proceed to consider MSA and Rock Airport's competing Plans for Reorganization. The Bankruptcy Court scheduled confirmation hearings on the competing Plans for August 21, 2014.
MSA filed its Response to the Rock Airport's Emergency Motion with this Court on August 20, 2014. Doc. no. 2. This Court issued its Order denying the Emergency Motion on August 22, 2014. Text Order dated August 22, 2014. This Opinion now follows.
II. Issue Presented in Rock Airport's Emergency Motion
Rock Airport stated in its Emergency Motion to this Court that the "thrust" of MSA's Reorganization Plan was to sell Rock Airport's "real and personal property" to "an affiliate of MSA, namely Alaskan Property Management Company, LLC" and that the Trustee had "arranged for the sale" of said property to Alaskan Property Management Company, LLC (hereinafter "Alaskan Property"). Doc. no. 1 ¶¶ 5-6. MSA denied these statements in part, invited this Court to review its Plan of Reorganization (filed on the Bankruptcy Docket 09-23155, doc. no. 579), and explained that Trustee entered into an Asset Purchase Agreement with Alaskan Property but filed a Motion seeking an Order Approving the sale to Alaskan Property or the successful bidder at the sale hearing. Doc. no 2, ¶ 5. Although the Parties concur that a hearing on the sale of Rock Airport's assets was scheduled for August 21, 2014, the hearing was continued until September 4, 2014. See footnote 3.
Rock Airport has requested that this Court stay the bankruptcy proceedings under B.R. 8005 in order to preserve its "rights to obtain appellate review" of the two Memorandum Orders entered by the Bankruptcy Court in favor of MSA that held that MSA had standing to file its Reorganization Plan and denied Rock Airport's Objection to the claim obtained by MSA from the Priscilla Trust. Doc. no. 1, ¶ 9-11. MSA argues that Rock Airport's requested stay is unwarranted and unallowable. Doc. no. 2, ¶¶ 9-11. However, the Parties do agree that there is four-part test that the Court should utilize when deciding this issue.
III. Legal Analysis
A. The Statute and Case Law (four-part test) at Issue Bankruptcy Rule of Procedure 8005 ...