08–01266–RAM ALDERWOODS GROUP, INC., OSIRIS HOLDING OF FLORIDA, INC., NORTHSTAR GRACELAND, LLC, Plaintiffs—Appellants, v. REYVIS GARCIA, RAMONA JOHNSON, MERCEDES WOODBERRY, Defendants—Appellees.
SO ORDERED.
FOOTNOTES
FN4. The Bar Date Order provided that any creditor that did not file a proof of claim before the bar date could no longer assert its claim against Alderwoods or its subsidiaries.. FN4. The Bar Date Order provided that any creditor that did not file a proof of claim before the bar date could no longer assert its claim against Alderwoods or its subsidiaries.
FN5. Section 157 states, in pertinent part:Each district court may provide that any or all cases under title 11 and any or all proceedings arising under title 11 or arising in or related to a case under title 11 shall be referred to the bankruptcy judges for the district. Bankruptcy judges may hear and determine all cases under title 11 and all core proceedings arising under title 11, or arising in a case under title 11․28 U.S.C. § 157(a)-(b)(1).Section 1334 states, in pertinent part: “[T]he district courts shall have original but not exclusive jurisdiction of all civil proceedings arising under title 11, or arising in or related to cases under title 11.” 28 U.S.C. § 1334(b).. FN5. Section 157 states, in pertinent part:Each district court may provide that any or all cases under title 11 and any or all proceedings arising under title 11 or arising in or related to a case under title 11 shall be referred to the bankruptcy judges for the district. Bankruptcy judges may hear and determine all cases under title 11 and all core proceedings arising under title 11, or arising in a case under title 11․28 U.S.C. § 157(a)-(b)(1).Section 1334 states, in pertinent part: “[T]he district courts shall have original but not exclusive jurisdiction of all civil proceedings arising under title 11, or arising in or related to cases under title 11.” 28 U.S.C. § 1334(b).
FN6. The complaint invoked the Declaratory Judgement Act, 28 U.S.C. § 2201, which provides that “[i]n a case of actual controversy within its jurisdiction, ․ any court of the United States, upon the filing of an appropriate pleading, may declare the rights and other legal relations of any interested party seeking such declaration.”. FN6. The complaint invoked the Declaratory Judgement Act, 28 U.S.C. § 2201, which provides that “[i]n a case of actual controversy within its jurisdiction, ․ any court of the United States, upon the filing of an appropriate pleading, may declare the rights and other legal relations of any interested party seeking such declaration.”
FN7. Section 1141 states, in pertinent part: “Except as otherwise provided in this subsection, in the plan, or in the order confirming the plan, the confirmation of a plan discharges the debtor from any debt that arose before the date of such confirmation․” 11. U.S.C. § 1141(d)(1)(A).. FN7. Section 1141 states, in pertinent part: “Except as otherwise provided in this subsection, in the plan, or in the order confirming the plan, the confirmation of a plan discharges the debtor from any debt that arose before the date of such confirmation․” 11. U.S.C. § 1141(d)(1)(A).
FN8. Section 524 states, in pertinent part:A discharge in a case under this title voids any judgment at any time obtained, to the extent that such judgment is a determination of the personal liability of the debtor with respect to any debt discharged․․After notice and hearing, a court that enters an order confirming a plan of reorganization under chapter 11 may issue, in connection with such order, an injunction in accordance with this subsection to supplement the injunctive effect of a discharge under this section.11 U.S.C. § 524(a)(2), (g)(1)(A).. FN8. Section 524 states, in pertinent part:A discharge in a case under this title voids any judgment at any time obtained, to the extent that such judgment is a determination of the personal liability of the debtor with respect to any debt discharged․․After notice and hearing, a court that enters an order confirming a plan of reorganization under chapter 11 may issue, in connection with such order, an injunction in accordance with this subsection to supplement the injunctive effect of a discharge under this section.11 U.S.C. § 524(a)(2), (g)(1)(A).
FN9. Compl. for Declaratory Relief at 5–6, Alderwoods Grp. v. Garcia, No. 08–1266–BKC–RAM–A (Bankr.S.D.Fla. Apr. 7, 2008). In addition to damages and injunctive relief, the complaint sought “such other and further relief as the Court deems just and proper.” Id. at 6.. FN9. Compl. for Declaratory Relief at 5–6, Alderwoods Grp. v. Garcia, No. 08–1266–BKC–RAM–A (Bankr.S.D.Fla. Apr. 7, 2008). In addition to damages and injunctive relief, the complaint sought “such other and further relief as the Court deems just and proper.” Id. at 6.
FN10. The gist of the Creditors' motion was that the Florida Bankruptcy Court could not exercise jurisdiction over what was effectively an affirmative defense of discharge masquerading as a request for declaratory relief—in essence, that Debtors were asserting no federally created right. Debtors, in turn, argued that the Chapter 11 Case discharge injunction was a matter of federal bankruptcy law and that, in determining whether Creditors' State Court action was barred by that discharge, the Florida Bankruptcy Court was properly exercising federal jurisdiction.. FN10. The gist of the Creditors' motion was that the Florida Bankruptcy Court could not exercise jurisdiction over what was effectively an affirmative defense of discharge masquerading as a request for declaratory relief—in essence, that Debtors were asserting no federally created right. Debtors, in turn, argued that the Chapter 11 Case discharge injunction was a matter of federal bankruptcy law and that, in determining whether Creditors' State Court action was barred by that discharge, the Florida Bankruptcy Court was properly exercising federal jurisdiction.
FN11. At the hearing held on the motions for summary judgment, Creditors' counsel apparently conceded that the State Court claims were subject to discharge provided that adequate notice of the Chapter 11 Case had been provided. Presumably because of this concession, the Florida Bankruptcy Court framed the issues before it as whether Creditors' requested injunctive relief was a claim subject to discharge and whether the notice published in the Chapter 11 Case provided adequate notice as to all of Creditors' claims.. FN11. At the hearing held on the motions for summary judgment, Creditors' counsel apparently conceded that the State Court claims were subject to discharge provided that adequate notice of the Chapter 11 Case had been provided. Presumably because of this concession, the Florida Bankruptcy Court framed the issues before it as whether Creditors' requested injunctive relief was a claim subject to discharge and whether the notice published in the Chapter 11 Case provided adequate notice as to all of Creditors' claims.
FN12. The Bankruptcy Court reasoned that because “prior to the Effective Date of their plan of reorganization, [Debtors] knew enough about record-keeping problems and lost burials, or at the very least, the difficulties it was experiencing locating grave-sites at Graceland,” Debtors could “reasonably expect future problems and future claims from family members like [Creditors] here.” Alderwoods Grp. v. Garcia, No. 08–1266–BKC–RAM–A, slip op. at 27–28 (Bankr.S.D.Fla. Nov. 25, 2009). The Florida Bankruptcy Court found the notice inadequate in that Creditors could not have known from reading the notice that it referred to Graceland.. FN12. The Bankruptcy Court reasoned that because “prior to the Effective Date of their plan of reorganization, [Debtors] knew enough about record-keeping problems and lost burials, or at the very least, the difficulties it was experiencing locating grave-sites at Graceland,” Debtors could “reasonably expect future problems and future claims from family members like [Creditors] here.” Alderwoods Grp. v. Garcia, No. 08–1266–BKC–RAM–A, slip op. at 27–28 (Bankr.S.D.Fla. Nov. 25, 2009). The Florida Bankruptcy Court found the notice inadequate in that Creditors could not have known from reading the notice that it referred to Graceland.
FN13. The District Court had appellate jurisdiction pursuant to 28 U.S.C. § 158(a): “The district courts of the United States shall have jurisdiction to hear appeals ․ from final judgments, orders, and decrees ․ entered in cases and proceedings referred to the bankruptcy judges․”. FN13. The District Court had appellate jurisdiction pursuant to 28 U.S.C. § 158(a): “The district courts of the United States shall have jurisdiction to hear appeals ․ from final judgments, orders, and decrees ․ entered in cases and proceedings referred to the bankruptcy judges․”
FN14. In its Rule 59(e) motion, Debtors argued that the nonresident alien Creditor—who lived in Cuba at the time of the Chapter 11 Case—did not enjoy the right of due process and thus was not entitled to adequate notice of the bankruptcy proceeding.. FN14. In its Rule 59(e) motion, Debtors argued that the nonresident alien Creditor—who lived in Cuba at the time of the Chapter 11 Case—did not enjoy the right of due process and thus was not entitled to adequate notice of the bankruptcy proceeding.
FN15. We have jurisdiction pursuant to 28 U.S.C. § 158(d)(1), which gives the courts of appeals appellate jurisdiction over “final decisions, judgments, orders, and decrees entered” by the district courts in exercise of their appellate jurisdiction under 28 U.S.C. § 158(a). “The plain meaning of this provision grants this court jurisdiction of appeals only where the district court exercised appellate jurisdiction from a decision by a bankruptcy judge, not where the district court exercised original jurisdiction.” Jove Eng'g, Inc. v. I.R.S., 92 F.3d 1539, 1547 (11th Cir.1996). Of course, “[a] court of appeals' jurisdiction over a district court's review of a bankruptcy court order can only be based on a proper exercise of the district court's jurisdiction.” In re Vlasek, 325 F.3d 955, 960 (7th Cir.2003). We nevertheless also have jurisdiction over this appeal pursuant to 28 U.S.C. § 1291.. FN15. We have jurisdiction pursuant to 28 U.S.C. § 158(d)(1), which gives the courts of appeals appellate jurisdiction over “final decisions, judgments, orders, and decrees entered” by the district courts in exercise of their appellate jurisdiction under 28 U.S.C. § 158(a). “The plain meaning of this provision grants this court jurisdiction of appeals only where the district court exercised appellate jurisdiction from a decision by a bankruptcy judge, not where the district court exercised original jurisdiction.” Jove Eng'g, Inc. v. I.R.S., 92 F.3d 1539, 1547 (11th Cir.1996). Of course, “[a] court of appeals' jurisdiction over a district court's review of a bankruptcy court order can only be based on a proper exercise of the district court's jurisdiction.” In re Vlasek, 325 F.3d 955, 960 (7th Cir.2003). We nevertheless also have jurisdiction over this appeal pursuant to 28 U.S.C. § 1291.
FN16. Section 350(b) states, in pertinent part, that “[a] case may be reopened ․ to accord relief to the debtor, or for other cause.” 11 U.S.C. § 350(b).. FN16. Section 350(b) states, in pertinent part, that “[a] case may be reopened ․ to accord relief to the debtor, or for other cause.” 11 U.S.C. § 350(b).
FN17. Debtors rejected option (1) by not pleading the discharge as an affirmative defense in the State Court case.As for option (2), 28 U.S.C. § 1452 gives the district courts removal jurisdiction for “claims related to bankruptcy cases”:A party may remove any claim or cause of action in a civil action other than a proceeding before the United States Tax Court or a civil action by a governmental unit to enforce such governmental unit's police or regulatory power, to the district court for the district where such civil action is pending, if such district court has jurisdiction of such claim or cause of action under section 1334 of this title.28 U.S.C. § 1452(a). Removal of cases under § 1452(a) is possible only within “30 days after receipt, through service or otherwise, of a copy of the initial pleading setting forth the claim or cause of action sought to be removed.” Fed. R. Bankr.P. 9027(a)(3)(A); see also 28 U.S.C. § 1446(b) (“The notice of removal of a civil action or proceeding shall be filed within thirty days after the receipt by the defendant, through service or otherwise, of a copy of the initial pleading setting forth the claim for relief upon which such action or proceeding is based.”). Section 1334 refers to 28 U.S.C. § 1334, “Bankruptcy Cases and Proceedings,” which gives “the district courts ․ original and exclusive jurisdiction of all cases under [the Bankruptcy Code], “ id. § 1334(a), and for “original but not exclusive jurisdiction of all civil proceedings arising under [the Bankruptcy Code], or arising in or related to cases under [the Bankruptcy Code],” id. § 1334(b).Debtors did not choose option (2) by timely removing the State Court case—in whole or in part—to federal court. Debtors did not file their complaint for declaratory relief in the Florida Bankruptcy Court until April 2008, nearly four years after Creditors filed the State Court action, in December 2004. Thus, even if the Florida Bankruptcy Court had treated the complaint as a de facto removal under 28 U.S.C. § 1452(a), that removal would have been untimely. And the general removal statute, 28 U.S.C. § 1441, would not have applied; the State Court case, consisting only of state-law claims, was not one “of which the district courts of the United States have original jurisdiction.” 28 U.S.C. § 1441(a).As for option (3), 11 U.S.C. § 350 provides for the bankruptcy courts' administrative powers to open and close bankruptcy cases:(a) After an estate is fully administered and the court has discharged the trustee, the court shall close the case.(b) A case may be reopened in the court in which such case was closed to administer assets, to accord relief to the debtor, or for other cause.11 U.S.C. § 350. “[U]nder Bankruptcy Rule 4007(b) either the debtor or the creditor can move to reopen the case for the purpose of filing a complaint to determine dischargeability.” In re James, 184 B.R. 147, 150–51 (Bankr.N.D.Ala.1995) (quoting In re Mendiola, 99 B.R. 864, 870 (Bankr.N.D.Ill.1989) (internal quotation marks omitted). Bankruptcy Rule 4007 provides that “[a] debtor or any creditor may file a complaint to obtain a determination of the dischargeability of any debt.” Fed. R. Bankr.P. 4007(a). “This rule prescribes the procedure to be followed when a party requests the court to determine dischargeability of a debt pursuant to § 523 of the Code,” id. note, which in turn lists exceptions to discharge under, inter alia, 11 U.S.C. § 1141, see 11 U.S.C. § 523. Thus, § 350(b) provides a mechanism whereby, after an estate has been administered according to a confirmed reorganization plan, the debtor or a creditor may reopen a bankruptcy case to obtain a determination of whether the creditor's claim is of a type exempted from discharge pursuant to 11 U.S.C. § 523.Debtors did not choose option (3) because they did not—and could not—move the Florida Bankruptcy Court to reopen the Chapter 11 Case. The case would have to be reopened, if at all, by the Delaware Bankruptcy Court which had administered the case. See 11 U.S.C. § 350(b) (“A case may be reopened in the court in which such case was closed to administer assets, to accord relief to the debtor, or for other cause.” (emphasis added)).. FN17. Debtors rejected option (1) by not pleading the discharge as an affirmative defense in the State Court case.As for option (2), 28 U.S.C. § 1452 gives the district courts removal jurisdiction for “claims related to bankruptcy cases”:A party may remove any claim or cause of action in a civil action other than a proceeding before the United States Tax Court or a civil action by a governmental unit to enforce such governmental unit's police or regulatory power, to the district court for the district where such civil action is pending, if such district court has jurisdiction of such claim or cause of action under section 1334 of this title.28 U.S.C. § 1452(a). Removal of cases under § 1452(a) is possible only within “30 days after receipt, through service or otherwise, of a copy of the initial pleading setting forth the claim or cause of action sought to be removed.” Fed. R. Bankr.P. 9027(a)(3)(A); see also 28 U.S.C. § 1446(b) (“The notice of removal of a civil action or proceeding shall be filed within thirty days after the receipt by the defendant, through service or otherwise, of a copy of the initial pleading setting forth the claim for relief upon which such action or proceeding is based.”). Section 1334 refers to 28 U.S.C. § 1334, “Bankruptcy Cases and Proceedings,” which gives “the district courts ․ original and exclusive jurisdiction of all cases under [the Bankruptcy Code], “ id. § 1334(a), and for “original but not exclusive jurisdiction of all civil proceedings arising under [the Bankruptcy Code], or arising in or related to cases under [the Bankruptcy Code],” id. § 1334(b).Debtors did not choose option (2) by timely removing the State Court case—in whole or in part—to federal court. Debtors did not file their complaint for declaratory relief in the Florida Bankruptcy Court until April 2008, nearly four years after Creditors filed the State Court action, in December 2004. Thus, even if the Florida Bankruptcy Court had treated the complaint as a de facto removal under 28 U.S.C. § 1452(a), that removal would have been untimely. And the general removal statute, 28 U.S.C. § 1441, would not have applied; the State Court case, consisting only of state-law claims, was not one “of which the district courts of the United States have original jurisdiction.” 28 U.S.C. § 1441(a).As for option (3), 11 U.S.C. § 350 provides for the bankruptcy courts' administrative powers to open and close bankruptcy cases:(a) After an estate is fully administered and the court has discharged the trustee, the court shall close the case.(b) A case may be reopened in the court in which such case was closed to administer assets, to accord relief to the debtor, or for other cause.11 U.S.C. § 350. “[U]nder Bankruptcy Rule 4007(b) either the debtor or the creditor can move to reopen the case for the purpose of filing a complaint to determine dischargeability.” In re James, 184 B.R. 147, 150–51 (Bankr.N.D.Ala.1995) (quoting In re Mendiola, 99 B.R. 864, 870 (Bankr.N.D.Ill.1989) (internal quotation marks omitted). Bankruptcy Rule 4007 provides that “[a] debtor or any creditor may file a complaint to obtain a determination of the dischargeability of any debt.” Fed. R. Bankr.P. 4007(a). “This rule prescribes the procedure to be followed when a party requests the court to determine dischargeability of a debt pursuant to § 523 of the Code,” id. note, which in turn lists exceptions to discharge under, inter alia, 11 U.S.C. § 1141, see 11 U.S.C. § 523. Thus, § 350(b) provides a mechanism whereby, after an estate has been administered according to a confirmed reorganization plan, the debtor or a creditor may reopen a bankruptcy case to obtain a determination of whether the creditor's claim is of a type exempted from discharge pursuant to 11 U.S.C. § 523.Debtors did not choose option (3) because they did not—and could not—move the Florida Bankruptcy Court to reopen the Chapter 11 Case. The case would have to be reopened, if at all, by the Delaware Bankruptcy Court which had administered the case. See 11 U.S.C. § 350(b) (“A case may be reopened in the court in which such case was closed to administer assets, to accord relief to the debtor, or for other cause.” (emphasis added)).
FN18. Federal judges have inherent power under Article III of the United States Constitution to hold litigants in civil contempt for violating court orders, see Chambers v. NASCO, Inc., 501 U.S. 32, 44, 111 S.Ct. 2123, 2132, 115 L.Ed.2d 27 (1991), such as an injunction effected by 11 U.S.C. § 524(a)(2), see, e.g., Matthews v. United States (In re Matthews ), 184 B.R. 594, 598 (Bankr.S.D.Ala.1995) (“Civil contempt power is inherent in bankruptcy courts since all courts have authority to enforce compliance with their lawful orders. This inherent authority extends to statutory ‘orders' such as ․ the discharge injunction.” (citing In re Galvez, 119 B.R. 849, 849 (Bankr.M.D.Fla.1990)).Bankruptcy-court power in this respect is given also by § 105(a) of the Bankruptcy Code:The court may issue any order, process, or judgment that is necessary or appropriate to carry out the provisions of this title. No provision of this title providing for the raising of an issue by a party in interest shall be construed to preclude the court from, sua sponte, taking any action or making any determination necessary or appropriate to enforce or implement court orders or rules, or to prevent an abuse of process.11 U.S.C. § 105(a); see also Hardy v. United States ex rel. I.R.S. (In re Hardy ), 97 F.3d 1384, 1389 (11th Cir.1996) (“Section 105 creates a statutory contempt power, distinct from the court's inherent contempt powers in bankruptcy proceedings.”). “While a defendant may be cited for contempt under the court's inherent powers only upon a showing of ‘bad faith,’ [Creditor] may be liable for contempt under § 105 if it willfully violated the permanent injunction of § 524.” In re Hardy, 97 F.3d at 1390 (quoting Glatter v. Mroz (In re Mroz ), 65 F.3d 1567, 1575 (11th Cir.1995)) (emphasis omitted).. FN18. Federal judges have inherent power under Article III of the United States Constitution to hold litigants in civil contempt for violating court orders, see Chambers v. NASCO, Inc., 501 U.S. 32, 44, 111 S.Ct. 2123, 2132, 115 L.Ed.2d 27 (1991), such as an injunction effected by 11 U.S.C. § 524(a)(2), see, e.g., Matthews v. United States (In re Matthews ), 184 B.R. 594, 598 (Bankr.S.D.Ala.1995) (“Civil contempt power is inherent in bankruptcy courts since all courts have authority to enforce compliance with their lawful orders. This inherent authority extends to statutory ‘orders' such as ․ the discharge injunction.” (citing In re Galvez, 119 B.R. 849, 849 (Bankr.M.D.Fla.1990)).Bankruptcy-court power in this respect is given also by § 105(a) of the Bankruptcy Code:The court may issue any order, process, or judgment that is necessary or appropriate to carry out the provisions of this title. No provision of this title providing for the raising of an issue by a party in interest shall be construed to preclude the court from, sua sponte, taking any action or making any determination necessary or appropriate to enforce or implement court orders or rules, or to prevent an abuse of process.11 U.S.C. § 105(a); see also Hardy v. United States ex rel. I.R.S. (In re Hardy ), 97 F.3d 1384, 1389 (11th Cir.1996) (“Section 105 creates a statutory contempt power, distinct from the court's inherent contempt powers in bankruptcy proceedings.”). “While a defendant may be cited for contempt under the court's inherent powers only upon a showing of ‘bad faith,’ [Creditor] may be liable for contempt under § 105 if it willfully violated the permanent injunction of § 524.” In re Hardy, 97 F.3d at 1390 (quoting Glatter v. Mroz (In re Mroz ), 65 F.3d 1567, 1575 (11th Cir.1995)) (emphasis omitted).
FN19. 11 U.S.C. § 105(a) empowers the bankruptcy courts to enjoin state suits. See In re Hardy, 97 F.3d at 1389. The Anti–Injunction Act, 28 U.S.C. § 2283, does provide that “[a] court of the United States may not grant an injunction to stay proceedings in a State court except as expressly authorized by Act of Congress, or where necessary in aid of its jurisdiction, or to protect or effectuate its judgments.” The current version of the Anti–Injunction Act, however, expanded upon the earlier version; “[a]n exception as to Acts of Congress relating to bankruptcy was omitted and the general exception substituted to cover all exceptions.” Id. note. Hence, “[t]he language of § 105 encompasses any type of order, whether injunctive, compensative or punitive, as long as it is necessary or appropriate to carry out the provisions of the Bankruptcy Code,” In re Hardy, 97 F.3d at 1389 (quoting Jove Eng'g, 92 F.3d at 1553–54 (quoting 28 U.S.C. § 105)) (internal quotation marks omitted)), such as when allowing a state-court claimant to prosecute his suit would frustrate administration of the bankruptcy estate.. FN19. 11 U.S.C. § 105(a) empowers the bankruptcy courts to enjoin state suits. See In re Hardy, 97 F.3d at 1389. The Anti–Injunction Act, 28 U.S.C. § 2283, does provide that “[a] court of the United States may not grant an injunction to stay proceedings in a State court except as expressly authorized by Act of Congress, or where necessary in aid of its jurisdiction, or to protect or effectuate its judgments.” The current version of the Anti–Injunction Act, however, expanded upon the earlier version; “[a]n exception as to Acts of Congress relating to bankruptcy was omitted and the general exception substituted to cover all exceptions.” Id. note. Hence, “[t]he language of § 105 encompasses any type of order, whether injunctive, compensative or punitive, as long as it is necessary or appropriate to carry out the provisions of the Bankruptcy Code,” In re Hardy, 97 F.3d at 1389 (quoting Jove Eng'g, 92 F.3d at 1553–54 (quoting 28 U.S.C. § 105)) (internal quotation marks omitted)), such as when allowing a state-court claimant to prosecute his suit would frustrate administration of the bankruptcy estate.
FN20. We say misguided because Alderwoods's complaint does not reflect the proper procedure to invoke the court's civil contempt power.If the plaintiff (the party obtaining the writ) believes that the defendant (the enjoined party) is failing to comply with the decree's mandate, the plaintiff moves the court to issue an order to show cause why the defendant should not be adjudged in civil contempt and sanctioned. The plaintiff's motion cites the injunctive provision at issue and alleges that the defendant has refused to obey its mandate. If satisfied that the plaintiff's motion states a case of non-compliance, the court orders the defendant to show cause why he should not be held in contempt and schedules a hearing for that purpose. At the hearing, if the plaintiff proves what he has alleged in his motion for an order to show cause, the court hears from the defendant. At the end of the day, the court determines whether the defendant has complied with the injunctive provision at issue and, if not, the sanction(s) necessary to ensure compliance.Reynolds v. Roberts, 207 F.3d 1288, 1298 (11th Cir.2000) (footnote omitted) (citations omitted).. FN20. We say misguided because Alderwoods's complaint does not reflect the proper procedure to invoke the court's civil contempt power.If the plaintiff (the party obtaining the writ) believes that the defendant (the enjoined party) is failing to comply with the decree's mandate, the plaintiff moves the court to issue an order to show cause why the defendant should not be adjudged in civil contempt and sanctioned. The plaintiff's motion cites the injunctive provision at issue and alleges that the defendant has refused to obey its mandate. If satisfied that the plaintiff's motion states a case of non-compliance, the court orders the defendant to show cause why he should not be held in contempt and schedules a hearing for that purpose. At the hearing, if the plaintiff proves what he has alleged in his motion for an order to show cause, the court hears from the defendant. At the end of the day, the court determines whether the defendant has complied with the injunctive provision at issue and, if not, the sanction(s) necessary to ensure compliance.Reynolds v. Roberts, 207 F.3d 1288, 1298 (11th Cir.2000) (footnote omitted) (citations omitted).
FN21. Libels against salvaged vessels or the proceeds thereof are in rem proceedings. The Sabine, 101 U.S. (11 Otto) 384, 386, 25 L.Ed. 982 (1880).. FN21. Libels against salvaged vessels or the proceeds thereof are in rem proceedings. The Sabine, 101 U.S. (11 Otto) 384, 386, 25 L.Ed. 982 (1880).
FN22. The same is true of civil forfeiture proceedings. “[I]t long has been understood that a valid seizure of the res is a prerequisite to the initiation of an in rem civil forfeiture proceeding.” Republic Nat'l Bank of Miami v. United States, 506 U.S. 80, 84, 113 S.Ct. 554, 557, 121 L.Ed.2d 474 (1992) (emphasis omitted).. FN22. The same is true of civil forfeiture proceedings. “[I]t long has been understood that a valid seizure of the res is a prerequisite to the initiation of an in rem civil forfeiture proceeding.” Republic Nat'l Bank of Miami v. United States, 506 U.S. 80, 84, 113 S.Ct. 554, 557, 121 L.Ed.2d 474 (1992) (emphasis omitted).
FN23. In Bonner v. City of Prichard, 661 F.2d 1206, 1209 (11th Cir.1981) (en banc), this Court adopted as binding precedent all decisions of the former Fifth Circuit handed down prior to October 1, 1981.. FN23. In Bonner v. City of Prichard, 661 F.2d 1206, 1209 (11th Cir.1981) (en banc), this Court adopted as binding precedent all decisions of the former Fifth Circuit handed down prior to October 1, 1981.
FN24. An injunction to cease prosecuting a claim that was discharged in bankruptcy is such an injunction. The discharge granted by operation of 11 U.S.C. § 524 “embodies the ‘fresh start’ concept of the bankruptcy code.” In re Hardy, 97 F.3d at 1388–89. In this sense, the discharge injunction itself is like an All Writs Act injunction issued “in aid of” a court's jurisdiction, see 28 U.S.C. § 1651, in that the discharge injunction is “in aid of” the purpose of the Bankruptcy Code. Similarly, enjoining prosecution of a discharged claim would also be “in aid of” the court's jurisdiction as a necessary means of effectuating the discharge injunction. See, e.g., Local Loan Co. v. Hunt, 292 U.S. 234, 241, 54 S.Ct. 695, 697–98, 78 L.Ed. 1230 (1934) (“[It is] the authority of the bankruptcy court to entertain the present proceeding, determine the effect of the adjudication and [discharge] order, and enjoin petitioner from its threatened interference therewith.”). The bankruptcy court may issue such injunctive order pursuant to 11 U.S.C. § 105(a), see In re Hardy, 97 F.3d at 1389–90, rather than under the All Writs Act. To be clear, however, the order is distinct from an injunctive order issued as the remedy for the defendant's breach of the right asserted in the plaintiff's complaint. See Klay v. United Healthgroup, Inc., 376 F.3d 1092, 1092–1103 (11th Cir.2004) (explaining the differences between “traditional,” “statutory,” and “All Writs Act” injunctions).. FN24. An injunction to cease prosecuting a claim that was discharged in bankruptcy is such an injunction. The discharge granted by operation of 11 U.S.C. § 524 “embodies the ‘fresh start’ concept of the bankruptcy code.” In re Hardy, 97 F.3d at 1388–89. In this sense, the discharge injunction itself is like an All Writs Act injunction issued “in aid of” a court's jurisdiction, see 28 U.S.C. § 1651, in that the discharge injunction is “in aid of” the purpose of the Bankruptcy Code. Similarly, enjoining prosecution of a discharged claim would also be “in aid of” the court's jurisdiction as a necessary means of effectuating the discharge injunction. See, e.g., Local Loan Co. v. Hunt, 292 U.S. 234, 241, 54 S.Ct. 695, 697–98, 78 L.Ed. 1230 (1934) (“[It is] the authority of the bankruptcy court to entertain the present proceeding, determine the effect of the adjudication and [discharge] order, and enjoin petitioner from its threatened interference therewith.”). The bankruptcy court may issue such injunctive order pursuant to 11 U.S.C. § 105(a), see In re Hardy, 97 F.3d at 1389–90, rather than under the All Writs Act. To be clear, however, the order is distinct from an injunctive order issued as the remedy for the defendant's breach of the right asserted in the plaintiff's complaint. See Klay v. United Healthgroup, Inc., 376 F.3d 1092, 1092–1103 (11th Cir.2004) (explaining the differences between “traditional,” “statutory,” and “All Writs Act” injunctions).
FN25. By analogy, posit one alternative to Debtors' course in the present setting: rather than Creditors suing Debtors in state court, Creditors sue Debtors in federal court seeking relief from Debtor's bankruptcy discharge. Creditors' remedy is not an in personam action against Debtors, but relief through Fed.R.Civ.P. 60(d)—made applicable to the bankruptcy courts, with certain exceptions, by Fed. R. Bankr.P. 9024—which provides that a court may “entertain an independent action to relieve a party from a judgment, order, or proceeding; grant relief ․ to a defendant who was not personally notified of the action; or set aside a judgment for fraud on the court.” Indeed, one such ground for relief from the discharge injunction is lack of notice:A discharge under section 727, 1141, 1228(a), 1228(b), or 1328(b) of this title does not discharge an individual debtor from any debt neither listed nor scheduled under section 521(a)(1) of this title, with the name, if known to the debtor, of the creditor to whom such debt is owed, in time to permit—(A) if such debt is not of a kind specified in paragraph (2), (4), or (6) of this subsection, timely filing of a proof of claim, unless such creditor had notice or actual knowledge of the case in time for such timely filing; or(B) if such debt is of a kind specified in paragraph (2), (4), or (6) of this subsection, timely filing of a proof of claim and timely request for a determination of dischargeability of such debt under one of such paragraphs, unless such creditor had notice or actual knowledge of the case in time for such timely filing and request․11 U.S.C. § 523(a)(3). This is because in an in rem proceeding, the enforceability of an in rem judgment is premised upon either actual or constructive notice to any persons who may have a claim to the res. See, e.g., Betty K Agencies, Ltd. v. M/V MONADA, 432 F.3d 1333, 1342 (11th Cir.2005).. FN25. By analogy, posit one alternative to Debtors' course in the present setting: rather than Creditors suing Debtors in state court, Creditors sue Debtors in federal court seeking relief from Debtor's bankruptcy discharge. Creditors' remedy is not an in personam action against Debtors, but relief through Fed.R.Civ.P. 60(d)—made applicable to the bankruptcy courts, with certain exceptions, by Fed. R. Bankr.P. 9024—which provides that a court may “entertain an independent action to relieve a party from a judgment, order, or proceeding; grant relief ․ to a defendant who was not personally notified of the action; or set aside a judgment for fraud on the court.” Indeed, one such ground for relief from the discharge injunction is lack of notice:A discharge under section 727, 1141, 1228(a), 1228(b), or 1328(b) of this title does not discharge an individual debtor from any debt neither listed nor scheduled under section 521(a)(1) of this title, with the name, if known to the debtor, of the creditor to whom such debt is owed, in time to permit—(A) if such debt is not of a kind specified in paragraph (2), (4), or (6) of this subsection, timely filing of a proof of claim, unless such creditor had notice or actual knowledge of the case in time for such timely filing; or(B) if such debt is of a kind specified in paragraph (2), (4), or (6) of this subsection, timely filing of a proof of claim and timely request for a determination of dischargeability of such debt under one of such paragraphs, unless such creditor had notice or actual knowledge of the case in time for such timely filing and request․11 U.S.C. § 523(a)(3). This is because in an in rem proceeding, the enforceability of an in rem judgment is premised upon either actual or constructive notice to any persons who may have a claim to the res. See, e.g., Betty K Agencies, Ltd. v. M/V MONADA, 432 F.3d 1333, 1342 (11th Cir.2005).
FN26. See, for example, the interest-of-justice factors listed in A.B. Real Estate, Inc. v. Bruno's, Inc. (In re Brunos, Inc.), 227 B.R. 311 (Bankr.N.D.Ala.1998):(1) “[e]conomics of estate administration”; (2) “[p]resumption in favor of the ‘home court’ ”; (3) “[j]udicial efficiency”; (4) “[a]bility to receive a fair trial”; (6) “[t]he state's interest in having local controversies decided within its borders, by those familiar with its laws”; (7) “[e]nforceability of any judgment rendered”; and (8) “[p]laintiff's original choice of forum.” Id. at 324–25.. FN26. See, for example, the interest-of-justice factors listed in A.B. Real Estate, Inc. v. Bruno's, Inc. (In re Brunos, Inc.), 227 B.R. 311 (Bankr.N.D.Ala.1998):(1) “[e]conomics of estate administration”; (2) “[p]resumption in favor of the ‘home court’ ”; (3) “[j]udicial efficiency”; (4) “[a]bility to receive a fair trial”; (6) “[t]he state's interest in having local controversies decided within its borders, by those familiar with its laws”; (7) “[e]nforceability of any judgment rendered”; and (8) “[p]laintiff's original choice of forum.” Id. at 324–25.