New Cingular Wireless Services, Inc. v. McCormick (In Re Wire Comm Wireless, Inc.)

MEMORANDUM

In October 2007, the Bankruptcy Court for the Eastern District of California issued an order granting approval of a compromise between the Trustee for now-defunct Wire Comm Wireless, Inc. (“Wire Comm”), and Wire Comm’s principal shareholders Timothy, Renee, Richard, and Shirley McCormick (“McCormicks”). As part of the compromise, the Trustee agreed to dismiss a state-court action New Cingular Wireless Services, Inc. (“New Cingular”) had brought against the McCormicks, in which the state court had substituted the Trustee as plaintiff. New Cingular appealed the bankruptcy court’s order approving the compromise to the District Court for the Eastern District of California, arguing that the bankruptcy court had failed to provide adequate factual support for its approval of the compromise. The district court affirmed. New Cingular now appeals.

Because the order at issue determined and affected the substantive rights of the parties, it was, for purposes of appeal, a final order. J.P. Morgan Inv. Mgmt., Inc. v. U.S. Tr. (In re Martech USA, Inc.), 188 B.R. 847, 849 (9th Cir. B.A.P. 1995). We have jurisdiction to hear an appeal from a final order pursuant to 28 U.S.C. § 158…