Free Order on Motion to Dismiss - District Court of Delaware - Delaware

Case 1 :07-cv—00030-GIVIS Document 22 Filed 09/24/2007 Page 1 of 2
IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF DELAWARE

In re: CHARLES ZANDFORD ) C.A. N0. 07-30
)
ORDER
1. On December 11, 2006, Charles Zandford ("Zandford"), a debtor in chapter 7 bankruptcy,
filed a notice of appeal from the July 18, 2006 letter ruling of United States Bankruptcy
Court for the District of Delaware (the "Bankruptcy Court"). In its letter ruling, the
Bankruptcy Court denied Zandford’s petition to disallow the Securities and Exchange
Commission’s (the "SEC") proof of claim. Zandford bases his appeal on the Bankruptcy
Court’s "misapplication ofthe law goveming the collection ofthe debt." (D.I. 1.)
2. On January 19, 2007, the SEC tiled a motion to dismiss Zandford’s appeal. (D.I. 5.) In its
motion, the SEC argues that Zandford has no standing to bring the appeal because this is a
chapter 7 case and a Trustee has been appointed.
3. Standing is subject to review at all stages of liti gation, because a lack of standing undermines
the jurisdiction of both the Bankruptcy Court and the district court acting as an appellate
court. In re Dionisio, No. 02-3020, 2003 U.S. App. LEXIS 12432, at * 5 (3d Cir. Apr. 17,
2003) (citing Bender v. Wil/iczmsp0rtArea Sch. Dist. , 475 U.S. 534, 546-47, 89 L.Ed.2d 501,
106 S.Ct. 1326 (1986)).
4. The court finds instructive the Third Circuit’s opinion in In re Dionisio, holding that a debtor
in a chapter 7 proceeding lacked standing, because, "[a]s a general matter, in a chapter 7
proceeding, the trustee alone has standing to raise issues before the bankruptcy court and to

Case 1:07-cv—00030-Gl\/IS Document 22 Filed 09/24/2007 Page 2 of 2
prosecute appeals." 2003 U.S. App, LEXIS 12432, at *5 (citing cases) (internal quotations
omitted); see ll U.S.C. § 323 (a) and (b) (providing that the trustee in a bankruptcy "is the
representative of the estate[,]" and "has capacity to sue and be sued"). Here, Alfred T.
Guiliano ("Guiliano") was appointed as the chapter 7 Trustee of Zandford’s estate on
October 12, 2005. Accordingly, it is Guiliano, not Zandford, who has standing to bring an
appeal of the Bankruptcy Court’s July 18, 2006 ruling. Because Zandford does not have
standing to bring this appeal, the court will grant the SEC’s motion to dismiss.
Therefore, IT IS HEREBY ORDERED that:
1. The SEC’s"Motion to Dismiss Appeal (D.I. 5) is GRANTED.
2. Zandford’s Motion to Amend Issues on Appeal (D.I. ll) is DENIED as moot.
3. The Clerk of Court is Ordered to close this case.
TED STATES DISTRICT JUDGE
F I L E D
SEP 2 4 EDO?
u.s. oismict count
oisrmcr OF DELAWARE
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