MRC Permian Company v. Point Energy Partners Permian LLC

Summary

The Texas Eighth Court of Appeals withdraws its previously issued opinions and judgment because appellee Holland Acquisitions, Inc. had filed for Chapter 7 bankruptcy before those materials were issued, triggering an automatic stay. The court grants a motion to sever Holland from the appeal, creates a separate appellate cause, reinstates the appeal against the nonbankrupt parties, and orders the clerk to restyle the original cause.

Holdings

1. Holland's Chapter 7 bankruptcy filing automatically stayed the appeal as to Holland because the appeal was a continuation of judicial action against a debtor who had been a defendant or appellee. The opinions and judgment issued after the bankruptcy filing were therefore withdrawn.
2. The court may sever the bankrupt appellee from the appeal and reinstate the appeal as to the nonbankrupt parties when the case is severable and the severance complies with federal bankruptcy law.
3. Papers filed in the appeal while it was suspended will be deemed filed on the date of the order, after severance and reinstatement, and will not be considered ineffective solely because they were filed during the suspension.

Questions Presented

1. Whether Holland's bankruptcy filing automatically stayed the pending appeal and required withdrawal of the opinions and judgment issued after the filing.
2. Whether the appeal could be severed as to Holland and reinstated as to the nonbankrupt parties under Texas Rule of Appellate Procedure 8.3.
3. Whether filings made while the appeal was suspended could be treated as filed upon reinstatement.

Disposition

other