Bankruptcy Appellate Panel
Encyclopedia
A Bankruptcy Appellate Panel (abbreviated BAP) is a group of judge
s of the United States bankruptcy court
s who are appointed to hear appeal
s from certain bankruptcy
cases under the supervision of the United States courts of appeals
.
Not all of the federal judicial circuits have yet convened Bankruptcy Appellate Panels. , only the First
, Sixth
, Eighth
, Ninth
, and Tenth
Circuits had convened these panels.
The first circuits to establish Bankruptcy Appellate Panels were the Ninth Circuit (in 1979) and the First Circuit (in 1980). The aftermath of the landmark Northern Pipeline Co. v. Marathon Pipe Line Co.
case in 1982 had different effects on the two circuits. Even though the U.S. Supreme Court
did not directly address the constitutionality of the panels in that decision, the First Circuit held that the emergency rules adopted after the decision was rendered pre-empted the use of their Bankruptcy Appeals Panel, and subsequently disbanded it. The Ninth Circuit disagreed, holding that because the BAP was supervised by the Court of Appeals, and because the BAP's decisions could be appealed to the Court of Appeals, it was constitutional and could therefore continue.
In 1994, Congress
enacted the Bankruptcy Reform Act of 1994, which included an amendment of (the statute
governing appeals in bankruptcy cases) to require all circuits to establish a BAP unless the judicial council of a circuit found that (1) there were insufficient judicial resources in the circuit to do so, or (2) the establishment of a BAP would result in undue delay or increased cost to parties in bankruptcy cases.
In 1996, the First Circuit reestablished its BAP, and four new panels were created in the Second, Sixth, Eighth, and Tenth Circuits. The Seventh Circuit deferred making a decision, and the remaining five circuits declined to create a BAP. The Second Circuit BAP ceased operations on July 1, 2000.
and Federal Rules of Appellate Procedure
. Parties to the bankruptcy case retain the right to have their appeal heard by a district court instead of a BAP by filing an election to transfer the case. Judges on a BAP are generally barred from hearing a case from their own bankruptcy district.
Appeals from the BAP itself are directed to the Court of Appeals for that circuit.
Judge
A judge is a person who presides over court proceedings, either alone or as part of a panel of judges. The powers, functions, method of appointment, discipline, and training of judges vary widely across different jurisdictions. The judge is supposed to conduct the trial impartially and in an open...
s of the United States bankruptcy court
United States bankruptcy court
United States bankruptcy courts are courts created under Article I of the United States Constitution. They function as units of the district courts and have subject-matter jurisdiction over bankruptcy cases. The federal district courts have original and exclusive jurisdiction over all cases arising...
s who are appointed to hear appeal
Appeal
An appeal is a petition for review of a case that has been decided by a court of law. The petition is made to a higher court for the purpose of overturning the lower court's decision....
s from certain bankruptcy
Bankruptcy in the United States
Bankruptcy in the United States is governed under the United States Constitution which authorizes Congress to enact "uniform Laws on the subject of Bankruptcies throughout the United States." Congress has exercised this authority several times since 1801, most recently by adopting the Bankruptcy...
cases under the supervision of the United States courts of appeals
United States court of appeals
The United States courts of appeals are the intermediate appellate courts of the United States federal court system...
.
Not all of the federal judicial circuits have yet convened Bankruptcy Appellate Panels. , only the First
United States Court of Appeals for the First Circuit
The United States Court of Appeals for the First Circuit is a federal court with appellate jurisdiction over the district courts in the following districts:* District of Maine* District of Massachusetts...
, Sixth
United States Court of Appeals for the Sixth Circuit
The United States Court of Appeals for the Sixth Circuit is a federal court with appellate jurisdiction over the district courts in the following districts:* Eastern District of Kentucky* Western District of Kentucky...
, Eighth
United States Court of Appeals for the Eighth Circuit
The United States Court of Appeals for the Eighth Circuit is a federal court with appellate jurisdiction over the district courts in the following districts:* Eastern District of Arkansas* Western District of Arkansas...
, Ninth
United States Court of Appeals for the Ninth Circuit
The United States Court of Appeals for the Ninth Circuit is a U.S. federal court with appellate jurisdiction over the district courts in the following districts:* District of Alaska* District of Arizona...
, and Tenth
United States Court of Appeals for the Tenth Circuit
The United States Court of Appeals for the Tenth Circuit is a federal court with appellate jurisdiction over the district courts in the following districts:* District of Colorado* District of Kansas...
Circuits had convened these panels.
History
The Bankruptcy Reform Act of 1978 permitted federal judicial circuits to establish Bankruptcy Appellate Panels to hear appeals from the bankruptcy courts. Those circuits which chose not to establish panels would have bankruptcy appeals heard by the United States district courts.The first circuits to establish Bankruptcy Appellate Panels were the Ninth Circuit (in 1979) and the First Circuit (in 1980). The aftermath of the landmark Northern Pipeline Co. v. Marathon Pipe Line Co.
Northern Pipeline Co. v. Marathon Pipe Line Co.
Northern Pipeline Co. v. Marathon Pipe Line Co., 458 U.S. 50 , was a case in which the Supreme Court of the United States held that Article III jurisdiction could not be conferred on non-Article III courts Northern Pipeline Co. v. Marathon Pipe Line Co., 458 U.S. 50 (1982), was a case in which the...
case in 1982 had different effects on the two circuits. Even though the U.S. Supreme Court
Supreme Court of the United States
The Supreme Court of the United States is the highest court in the United States. It has ultimate appellate jurisdiction over all state and federal courts, and original jurisdiction over a small range of cases...
did not directly address the constitutionality of the panels in that decision, the First Circuit held that the emergency rules adopted after the decision was rendered pre-empted the use of their Bankruptcy Appeals Panel, and subsequently disbanded it. The Ninth Circuit disagreed, holding that because the BAP was supervised by the Court of Appeals, and because the BAP's decisions could be appealed to the Court of Appeals, it was constitutional and could therefore continue.
In 1994, Congress
United States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....
enacted the Bankruptcy Reform Act of 1994, which included an amendment of (the statute
Statute
A statute is a formal written enactment of a legislative authority that governs a state, city, or county. Typically, statutes command or prohibit something, or declare policy. The word is often used to distinguish law made by legislative bodies from case law, decided by courts, and regulations...
governing appeals in bankruptcy cases) to require all circuits to establish a BAP unless the judicial council of a circuit found that (1) there were insufficient judicial resources in the circuit to do so, or (2) the establishment of a BAP would result in undue delay or increased cost to parties in bankruptcy cases.
In 1996, the First Circuit reestablished its BAP, and four new panels were created in the Second, Sixth, Eighth, and Tenth Circuits. The Seventh Circuit deferred making a decision, and the remaining five circuits declined to create a BAP. The Second Circuit BAP ceased operations on July 1, 2000.
Procedures
The BAP in each judicial circuit has its own local rules of practice, in addition to the Federal Rules of Bankruptcy ProcedureFederal Rules of Bankruptcy Procedure
The Federal Rules of Bankruptcy Procedure are a set of rules promulgated by the Supreme Court of the United States under the Rules Enabling Act, directing procedures in the United States bankruptcy courts...
and Federal Rules of Appellate Procedure
Federal Rules of Appellate Procedure
The Federal Rules of Appellate Procedure are a set of rules, promulgated by the Supreme Court of the United States on recommendation of an advisory committee, to govern procedures in cases in the United States Courts of Appeals....
. Parties to the bankruptcy case retain the right to have their appeal heard by a district court instead of a BAP by filing an election to transfer the case. Judges on a BAP are generally barred from hearing a case from their own bankruptcy district.
Appeals from the BAP itself are directed to the Court of Appeals for that circuit.