United States v. Danning (In re T.P. Richardson & Co.)

MEMORANDUM OF DECISION

In Fasson v. Magouirk, 693 F.2d 948 (9th Cir.1983), the Ninth Circuit laid down an explicit standard to govern extensions of time for appeals from the bankruptcy court. The Court in Magouirk said that the rule governing extensions of time “is very strictly construed.” Id. at 950 . In this proceeding, the Internal Revenue Service (“IRS”) seeks relief to extend time within which to file a notice of appeal. Finding that the IRS must prevail even under the very stringent standard of Magouirk , I grant the extension as requested.

The underlying case concerns the tax obligations of a bankruptcy estate. The sums in controversy run into hundreds of thousands of dollars, and the IRS asserted at oral argument that the case involves an important point of law. But none of that is strictly material to the present dispute. The dispute here centers on the application of the rules governing bankruptcy appeals, particularly former Bankruptcy Rule 802, 1 which provides that the notice of appeal from a bankruptcy judgment shall be filed within 10 days of the entry of judgment. The rule also provides that the time for filing the notice may be extended. But it says that if the…