In re Belmont Realty Corp.
In re Belmont Realty Corp.
Opinion of the Court
DECISION AND ORDER DENYING BANK’S MOTION FOR SUMMARY JUDGMENT
Before the Court for consideration is Rhode Island Hospital Trust National Bank’s (“the bank”) Motion for Summary Judgment, in reference to its Motion for Relief from Stay filed on November 7, 1989.
In support of this motion, the bank, relying on 11 U.S.C. § 362(e) and Bankruptcy Rule 4001(a)(2), argues that the time periods delineated therein have not been complied with, and that as a result, the automatic stay has terminated by operation of law. Rule 4001(a)(2) provides in pertinent part:
(2) Final Hearing on Stay. The stay of any act against property of the estate under § 362(a) of the Code expires 30 days after a final hearing is commenced pursuant to § 362(e) unless before that time expires.the court denies the motion for relief from the stay or, after notice and a hearing, orders the stay continued pending conclusion of the final hearing.
For the following three reasons, the bank’s Motion for Summary Judgment is DENIED. First, we are in complete agreement with, and therefore adopt the view advanced by the bankruptcy court in In re Roberts, 68 B.R. 1004 (Bankr.E.D.Mich. 1987). In that case Judge Spector held that “[bjecause [Rule 4001(a)(2)] purports to provide a self-executing relief from stay not contemplated by the statute and in contravention of its provision allowing a court to continue a stay until the conclusion of the final hearing, whenever that might occur, Bankruptcy Rule 4001(a) presents an irreconcilable conflict with 11 U.S.C. § 362(e) which must take precedence.” Id. at 1006-1007. (Emphasis in original.)
Here, the bank filed its Motion for Relief from Stay on November 7, 1989, and a hearing on the motion was scheduled to commence on December 5, 1989. However, on that date, the parties agreed to continue generally this hearing, pending the conclusion of another relief from stay matter entitled In re Evan Bogosian, 112 B.R. 2 (Bankr.D.R.I. 1990). That matter, still pending, was scheduled to resume on February 12 and 13, 1990. In the interim, however, on February 7, 1990, the bank filed the instant summary judgment motion, thereby interrupting the February 12 and 13, 1990 hearing dates on the In re Evan Bogosian matter, which we vacated upon the filing of the bank’s motion.
Finally, in the event that, on appeal, it is determined that the automatic stay has terminated as a matter of law, then, pursuant to the broad grant of authority conferred upon bankruptcy courts under § 105, and based upon the entire record, we hereby reimpose the automatic stay in this bankruptcy case. See, e.g., In re Wilmette Partners, supra, at 961. (“Briefly stated, had this court not decided this case on § 362(e) grounds, an identical conclusion would have been reached by this court under the provisions of § 105(a)” Id. at 961).
Based upon all of the foregoing, it is ORDERED that the bank’s Motion for Summary Judgment is DENIED, without prejudice. Also, upon reconsideration of our original (agreed upon) intention to hear these matters in tandem, and in light of the unanticipated but considerable passage of time since the filing of the bank’s motion for relief from stay, this matter will be heard independently of the Bogosian matter, and is scheduled to resume on March 19, 1990 at 11:00 a.m., in accordance with the procedure described at paragraph 4 of our decision in In re Evan Bogosian, supra.
Enter Judgment accordingly.
Reference
- Full Case Name
- In re BELMONT REALTY CORPORATION, Debtor
- Cited By
- 1 case
- Status
- Published