Timothy Blixseth v. Brian A. Glasser

MEMORANDUM

The bankruptcy court acted well within its discretion in denying Timothy Blixseth’s motion for reconsideration of an order allowing the B Shareholders a $22 million claim against the estate.

Bankruptcy Rule 9024 says that Federal Rule of Civil Procedure 60 applies to bankruptcy proceedings. Rule 9024 makes no exception for motions made under 11 U.S.C. § 502 (j) to reconsider contested orders allowing claims against the estate. Under Rule 60, there are limited grounds for granting reconsideration, and the bankruptcy judge reasonably determined that Blixseth falls short of all of them.

Blixseth meets none of the specific circumstances that justify reconsideration under Rule 60(b)(l)-(5). Nor does he satisfy Rule 60(b)(6)’s catchall provision because he fails to show that “extraordinary circumstances prevented [him] from taking timely action.” United States v. Alpine Land & Reservoir Co., 984 F.2d 1047, 1049 (9th Cir.1993). Even assuming that Blixseth didn’t have standing to challenge the April 19, 2010 allowance order until the amended AP 14 judgment came down on September 7, 2010, he still waited over a year after that date to file the motion for reconsideration. And…