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Are orders denying relief from the automatic stay pursuant to Section 362 of the Bankruptcy Code considered final and, therefore, appealable as of right? This was the issue of first impression that was recently presented to the U.S. Court of Appeals for the First Circuit in Pinpoint I Services, LLC v. Rivera (In re Atlas IT Export Corp.), 761 F.3d 177 (1st Cir. 2014). Until this decision, it was a question with a predictable answer ' yes. Predictable, because seven of the eight circuit courts that have considered this issue have reached the same result ' yes, such orders are final and appealable.
The First Circuit, however, mindful of avoiding the apparently observable herding phenomenon, rejected the blanket-rule approach in favor of what it describes as a more nuanced one which requires courts to be mindful of the multiple layers and many moving parts inherent in bankruptcy litigation while scouting for “finality indicators.” This article explores the reasoning behind the First Circuit's decision to create a circuit split rather than deciding the question presented by ruling on the merits.
The Atlas Facts and the First Circuit Appeal
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