Needler v. IRS (In re Burival), No. 10-6085, 2011 BL 153274 (B.A.P. 8th Cir. June 10, 2011) The United States Bankruptcy Appellate Court for the Eighth Circuit (“B.A.P.”) affirmed a bankruptcy court’s decision denying a motion for reconsideration brought by debtors’ attorney, as a holder of an administrative claim, seeking to vacate a sale order that provided that taxes would be paid as a surcharge against the sale proceeds. While the attorney was requesting reconsideration in an attempt to ensure the payment of his fees, the B.A.P. agreed with the bankruptcy court’s finding that the attorney had failed to demonstrate “mistake, inadvertence, surprise, or excusable neglect” or to establish any “newly discovered evidence” to warrant vacating the sale order under Federal Rule of Civil Procedure 60(b). As a result of the B.A.P.’s decision, the sale of the debtors’ property will remain undisturbed, and the attorney’s post-petition fees will most likely remain unpaid in light of the administrative insolvency of the estate.
Bankruptcy Court Authorizes Trustee to Sell Debtors’ Property and Surcharge Proceeds for Payment of Taxes
Needler’s Attempts to Vacate Sale Order
Overview of Motions to Vacate under Rule 60(b)
B.A.P. Rules Needler Failed to Demonstrate Grounds to Vacate Sale Order
B.A.P. Affirms Bankruptcy Court’s Denial of Motion to Reconsider
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