Mackey v. M C Investments
Mackey v. M C Investments
Opinion
UNITED STATES COURT OF APPEALS FOR THE FIFTH CIRCUIT _____________________
No. 00-40412 Summary Calendar _____________________
In The Matter Of: BLAS MARTINEZ; ROSINA U. MARTINEZ,
Debtors.
KEN MACKEY,
Appellant,
versus
M. C. INVESTMENTS,
Appellee. _________________________________________________________________
Appeal from the United States District Court for the Southern District of Texas (L-99-CV-90) _________________________________________________________________
October 5, 2000
Before HIGGINBOTHAM, WIENER, and BARKSDALE, Circuit Judges.
PER CURIAM:*
Ken Mackey, pro se, appeals the district court’s dismissal, as
moot, of his appeal from an order of the bankruptcy court
dismissing his complaint for failure to state a claim upon which
relief can be granted.
* Pursuant to 5TH CIR. R. 47.5, the Court has determined that this opinion should not be published and is not precedent except under the limited circumstances set forth in 5TH CIR. R. 47.5.4. Mackey represented the Debtors in a Chapter 11 bankruptcy
case. The bankruptcy court approved, in July 1996, Mackey’s claim
for attorney’s fees and expenses; confirmed the Debtors’ plan of
reorganization the next March; and closed the Chapter 11 case that
December.
In May 1999, Appellee M. C. Investments, a creditor in the
bankruptcy case and the holder of notes and deeds of trust securing
real property of the former Debtors, which had been executed
pursuant to the plan of reorganization, gave notice of a
foreclosure sale scheduled for 1 June. On 24 May, Mackey filed
suit against Appellee in Texas state court, claiming that Appellee
breached the notice provisions of the plan of reorganization, by
failing to give notice of default and acceleration of the
indebtedness owed Appellee by Debtors; and seeking damages or
specific performance, as well as injunctive relief. That same day,
the state court entered an ex parte temporary restraining order
against the scheduled foreclosure sale.
Appellee removed the action to bankruptcy court on 3 June.
Less than two months later, the bankruptcy court denied Mackey’s
motions to remand or abstain, and granted Appellee’s motion to
dismiss for failure to state a claim upon which relief can be
granted, concluding that the plan did not require any notice to
Mackey of default or acceleration. Mackey appealed to the district
court, which dismissed the appeal as moot.
2 Mackey contends the bankruptcy court lacked subject matter
jurisdiction; and the district court erred in dismissing his appeal
as moot and in failing to address the other issues he raised on
appeal.
Pursuant to
28 U.S.C. § 1334(b), federal courts “have original
but not exclusive jurisdiction of all civil proceedings arising
under title 11, or arising in or related to cases under title 11
[the Bankruptcy Code]”.
28 U.S.C. § 1334(b). The bankruptcy court
based jurisdiction on the “arising under title 11" prong of §
1334(b), because the rights asserted by Mackey, if any existed,
derived from the Bankruptcy Code, inasmuch as such rights allegedly
arose in a bankruptcy case, pursuant to a plan confirmed by the
bankruptcy court.
Despite the bankruptcy court’s determination that jurisdiction
was proper under § 1334(b)’s “arising under” prong, Mackey devotes
most of his brief on the jurisdictional issue to contending that
the bankruptcy court lacked jurisdiction under the “related to”
prong of that subsection. To the extent that he challenges the
bankruptcy court’s conclusion that the proceeding is one “arising
under title 11", by contending that the bankruptcy court erred in
determining that the case was a “core” matter under
28 U.S.C. § 157(b)(3), we reject that contention.
Mackey’s action against Appellee claimed breach of the notice
provisions of the confirmed plan of reorganization. Whether the
plan required such notice requires interpretation of the plan,
3 which is a matter “arising under title 11".
28 U.S.C. § 1334(b);
see Insurance Co. of North America v. NGC Settlement Trust &
Asbestos Claims Management Corp. (Matter of National Gypsum Co.),
118 F.3d 1056, 1064(5th Cir. 1997) (“a proceeding to enforce or
construe a bankruptcy court’s ... discharge injunction issued
pursuant to its confirmation order—and whether the confirmed
reorganization plan precludes certain post-confirmation collection
efforts—necessarily arises under title 11 and supports a finding
that federal jurisdiction exists under
28 U.S.C. § 1334and that
such a proceeding is ‘core’ under
28 U.S.C. § 157(b)”).
The district court dismissed Mackey’s appeal as moot because,
after removal, Appellee rescheduled the foreclosure sale; Mackey
conceded that the alleged defects in notice had been cured; did not
object to any procedural defect in notice with respect to the
rescheduled sale; and, subsequent to the bankruptcy court’s
dismissal, the foreclosure sale had been concluded. Mackey
contends that, although his claims regarding notice may be moot,
his request for costs, expenses, and attorney’s fees associated
with the allegedly defective notice of the earlier-scheduled
foreclosure sale are not moot. Concomitantly, he contends that the
district court erred by failing to address the bankruptcy court’s
determination that Appellee did not breach the plan of
reorganization.
Even assuming Mackey’s claims for attorney’s fees, costs, and
4 expenses are not moot, there is no reversible error. Essentially
for the reasons stated in the bankruptcy court’s opinion, the
confirmed plan of reorganization did not require notice to Mackey.
Mackey v. M. C. Investments (In re Martinez), No. 94-20350-H2-11,
Adv. No. 99-5006 (Bankr. S.D. Tex. 29 July 1999). There being no
breach of the plan, Mackey is not entitled to recover attorney’s
fees, costs, and expenses incurred in bringing the action.
Mackey’s contention that the bankruptcy court erred by
entering judgment rather than submitting proposed findings of fact
and conclusions of law to the district court, and by not
abstaining, are without merit, inasmuch as they are based on his
irrelevant contention that the bankruptcy court lacked subject
matter jurisdiction under the “related to” prong of § 1334(b). We
also reject his contention that the dismissal should have been
“without prejudice” or that he should have been given an
opportunity to replead his claims.
AFFIRMED.
5
Reference
- Status
- Unpublished