Legal Question in Bankruptcy in Nevada

I'm engaged in a bankruptcy case with an adversary proceeding. I sought sanctions in my case and amended the motion while in bankruptcy court. The re-organization plan specifically stated that my case would encompass the only claims other than the trustee's that could move forward once the plan was approved, which it was. Recently, a new judge on the case ruled I don't have standing to ask for relief for burned shareholders who were injured when I was silenced by litigation to silence me. Since I had been blogging about the issues of the troubled company before the suit and the shareholders were reading my blog voraciously and commenting even more spiritedly, I was touching a lot of nerves and informing many of them of the day to day problems at the company. The litigation shut me down, and I came up with multiple appeals precedents which showed 9011 and 105 sanctions can be paid to other parties other than the person who brings the motion if those parties were injured by the sanctionable behavior. There has been no hearing on this motion for sanctions in more than a year since the amended version was filed. Can a judge simply rule I have no standing without even holding a hearing on the specific motion and despite the fact that this motion was never challenged until recently and was allowed to move forward by the previous judge on the case?


Asked on 4/11/11, 11:16 am

1 Answer from Attorneys
John Courtney John Peter Lee, Ltd.

Generally, if a court determines that a movant (i.e., one bringing a motion) has no standing to seek the relief sought in the motion, then the motion will not be heard on the merits. In other words, if there is a determination of no standing, the motion goes no further.

Standing is a party's right to make a legal claim or seek judicial enforcement of a duty or right. To have standing in federal court, a plaintiff must show (1) that the challenged conduct has caused the plaintiff actual injury, and (2) that the interest sought to be protected is within the zone of interests meant to be regulated by the statutory or constitutional guarantee in question. See Black's Law Dictionary, Eighth Ed.

Third-party standing is standing held by someone claiming to protect the rights of others. Id. However, third-party standing is valid only in few instances, such a parent having standing to sue on behalf of his or her child, or a guardian suing on behalf of a ward, etc.

If the court ruled that you have no standing, third-party or otherwise, your motion goes no further unless, of course, you can prevail on appeal.

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Answered on 4/12/11, 9:37 am


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