In re Pena, (1st Cir.BAP (Mass.))

December 17, 2008: Jury - Adversary defendants were not entitled to a jury trial.

A Massachusetts bankruptcy court did not err in denying the adversary defendants' request for a jury trial, the First Circuit's Bankruptcy Appellate Panel (BAP) has held. The defendants did not request a jury trial prior to the bankruptcy court's entry of default, but only did so in their late-filed answer to the Chapter 7 debtors' complaint. The defendants thus had no constitutional right to trial by jury, and they failed to identify a specific federal statute that guaranteed them a right to jury trial.

Hale v. US Trustee, No. 06-35349

In an appeal brought by an attorney, arising after a bankruptcy court found he failed to honor his legal and ethical obligations in assisting certain debtors' with their bankruptcy application, an order denying his request for a jury trial on the reasonableness of his attorney fees, disgorging him of his fees, and sanctioning him is affirmed where: 1) the Seventh Amendment does not include a right to a jury trial on the reasonableness of attorney fees in bankruptcy proceedings; and 2) the bankruptcy court did not abuse its discretion in disgorging him of his attorney's fees nor in sanctioning him.

Date of decision: 12/10/07

Full opinion click here.

Notinger v. Brown (In re Simply Media, Inc.), 2007 BNH 043

Setting forth the procedural requirements under FRCP 38 and the substantive requirements under the Seventh Amendment and Supreme Court precedent regarding a party’s right to a jury trial in bankruptcy on claims for fraudulent transfer, constructive trust, turnover, unjust enrichment, civil conspiracy, abuse of process, tortious interference, breach of fiduciary duty, and unfair and deceptive business practices.

Date of decision: 11/28/07

Full opinion click here.