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IN RE: NIHAN FINANCIAL (2021)

United States Court of Appeals, Eleventh Circuit.2021-02-11No. No. 20-12768

Summary

Holding. The court affirmed the district court's dismissal of Thakkar's appeal, holding that he lacked standing because the bankruptcy court's order approving the attorneys' fees claim affected his pecuniary interest only indirectly rather than directly and adversely.

Chittranjan Thakkar, a member of Nihan Financial, LLC, appealed the dismissal of his challenge to a bankruptcy court order approving attorneys' fees for Nejame Law. Thakkar claimed he had standing as an equity holder in the company. The court rejected this argument, finding that while Thakkar may have some interest in the debtor entity, the bankruptcy court's fee approval affected him only indirectly, not directly and pecuniarily as required by the "person aggrieved" standard. The opinion notes that under Florida law, an LLC member has no interest in any specific property of the company, and Thakkar faced no certainty of receiving any surplus funds even if the company paid all creditors.

Summary generated by law.co from the public-domain opinion. The opinion text itself is public domain.

Key issues

  • Standing to appeal bankruptcy court orders under the "person aggrieved" standard
  • Whether indirect pecuniary harm to an LLC member provides basis for appeal
  • Nature and scope of member interests in limited liability company property

Procedural posture

Thakkar appealed pro se the district court's dismissal of his appeal from a bankruptcy court order approving a claim for attorneys' fees.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

Chittranjan Thakkar, a member of the debtor, Nihan Financial, LLC, appeals pro se the dismissal of his appeal from an order by the bankruptcy court approving a claim for attorneys’ fees. Thakkar argues that the district court erred in determining that he lacked standing to appeal the dismissal because he was a “person aggrieved” as he owned equity in the debtor entity. We affirm.

“To have standing, a plaintiff must show: (1) he has suffered an injury in fact that is (a) concrete and particularized and (b) actual or imminent, not conjectural or hypothetical; (2) the injury is fairly traceable to conduct of the defendant; and (3) it is likely, not just merely speculative, that the injury will be redressed by a favorable decision.” Kelly v. Harris, 331 F.3d 817, 819–20 (11th Cir. 2003). The injury requirement “serves to distinguish a person with a direct stake in the outcome of a litigation—even though small—from a person with a mere interest in the problem.” Arcia v. Fla. Secy of State, 772 F.3d 1335, 1340 (11th Cir. 2014). To determine whether a person has standing to appeal an order of a bankruptcy court, we apply the “person aggrieved” standard. Atkinson v. Ernie Haire Ford, Inc. (In re Ernie Haire Ford, Inc.), 764 F.3d 1321, 1325 (11th Cir. 2014), cert. denied, 577 U.S. 822, 136 S. Ct. 104, 193 L.Ed.2d 36 (2015). Under that standard, a person has standing to appeal only when he is “directly, adversely, and pecuniarily affect[ed] by a bankruptcy courts order.” Id.; see also Fisher Island Ltd. v. Solby+Westbrae Partners (In re Fisher Island Investments, Inc.), 778 F.3d 1172, 1195–96 (11th Cir. 2015). A party is not “aggrieved” when the bankruptcy courts order causes only indirect harm to the partys asserted interest. See In re Ernie Haire Ford, Inc., 764 F.3d at 1326 (holding that former creditor was not a “person aggrieved” because he was merely an adversary defendant with an interest in avoiding liability to the estate). In Florida, “[a] member of a limited liability company has no interest in any specific limited liability company property.” Fla. Stat. § 605.0110(4).

The district court did not err when it dismissed Thakkars appeal. As we recently decided in his related appeals, Thakkar v. Good Gateway, LLC, 831 Fed.Appx. 479 (11th Cir. 2020); Thakkar v. Greenspoon Marder, P.A., 832 Fed.Appx. 678 (11th Cir. 2021), Thakkar lacks standing to appeal an order of the bankruptcy court that only indirectly affects his pecuniary interest in the debtor. As was true in Thakkars earlier appeals, the approval of the claim of Nejame Law for attorneys’ fees only indirectly affected his pecuniary interests, if at all. No guarantee existed that Thakkar would receive any surplus remaining even if Nilhan Financial satisfied its obligations to its creditors. And because Thakkar lacks standing to appeal, we need not address his other arguments.

AFFIRMED.

PER CURIAM: