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The Bankruptcy StrategistFeaturesBankruptcyLitigationUnited States Supreme Court

Move Quickly: Supreme Court Holds that Bankruptcy Court's Denial of Motion for Relief from the Automatic Stay Is a Final Appealable Order

By Louis F. Solimine, James J. Henderson and Andrew L. Turscak, Jr.
February 01, 2020

In a recent, unanimous opinion authored by Justice Ginsburg, the United States Supreme Court affirmed lower court decisions holding that a bankruptcy court order denying a motion for relief from the automatic stay constitutes a final order that must be appealed within the time provided under Federal Rule of Bankruptcy Procedure 8002. Ritzen Group, Inc. v. Jackson Masonry, LLC, 598 U.S. ___ (2020). As a result, creditors and other parties in interest now must carefully assess, even more so than before, if and when to file in the bankruptcy court a motion for relief from the automatic stay given the finality and ensuing consequences of an adverse ruling.

The Automatic Stay and Appeals of Bankruptcy Decisions

The filing of a bankruptcy petition immediately stays almost all actions against the debtor, and it prohibits a creditor from continuing or commencing acts that would impact the debtor or its estate. See, 11 U.S.C. §362(a). This is commonly referred to as the "automatic stay." A party in interest who wishes to continue or commence an action against the debtor may file a motion with the bankruptcy court seeking relief from the automatic stay to allow the party to do so. See, 11 U.S.C. §362(d). After a relief from stay motion is filed, the court will conduct a hearing and determine whether cause exists to grant the relief sought in the motion.

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