Cox v. Nostaw, Inc.

Cox, the trustee in the Central Illinois Energy Cooperative bankruptcy, appealed a bankruptcy court ruling after it was affirmed by the district court. In the meantime, the parties mediated a settlement and the bankruptcy court stated that it would approve that settlement, subject to the disposition of any objection filed by a creditor or Cox. Cox then moved for dismissal of the appeal. The Seventh Circuit denied the motion. When, as in this case, an appeal is from the district court’s affirmance of a bankruptcy court order, a remand to the bankruptcy court for approval of settlement requires coordination between three courts. Rules 12.1 and 57 both authorize relief only after the district court has said that it is inclined to grant a motion barred by the pending appeal. Although the parties obtained an indicative ruling from the bankruptcy court, there is no record that they sought or obtained an indicative ruling from the district court. The proper procedure is to obtain an indicative ruling from both courts that will need to act. View "Cox v. Nostaw, Inc." on Justia Law