Finality and its Three Exceptions
The 11th Circuit Court of Appeals recent decision in In re Donald J. Donovan, 532 F. 3rd 1134 (11th Cir. 2008) dealt with an appeal of the Bankruptcy Court's denial of an unsecured creditor's motion to dismiss a chapter 7 case as being "abusive". The Circuit Court held that it lacked jurisdiction as the order denying the motion was not a "final" order and no exception applied.
First, the Court reviewed the differences in scope of appellate review of district court and appellate courts in the bankruptcy context as set forth in 28 U.S.C. §158(a) and (d). In general, district courts may review final orders as well as interlocutory orders from bankruptcy proceeding, but circuit courts may only hear appeals of final orders.
Final Order The Court reviewed that the general requirement that an order be "final" in order to be appealed. For an order to be "final" it must "end the litigation on the merits, leaving nothing to be done but execute the judgment." The Court explained that in the bankruptcy context, the finality requirement is applied to "discrete controversies within the administration of the [bankruptcy] estate." The Court further explained that in the bankruptcy context, the finality requirement is given a "more flexible interpretation".
Exceptions to the Finality RulePrior 11th Circuit decisions discuss the three exception to the final order requirement.
- collateral order doctrine
- doctrine of practical finality
- intermediate resolution of issues fundamental to the merits of the case
Jordan E. Bublick is a Miami Bankruptcy Lawyer with over 25 years of experience in filing Chapter 13 and Chapter 7 Bankruptcy Cases and Mortgage Modifications (305) 891-4055