Judge Laura Beyer delivers a straightforward—but instructive—reminder that not every adverse ruling is immediately appealable, and that Rule 54(b) remains the exception, not the rule.
The Setup
In this Chapter 13 adversary proceeding, the debtor, Luis Perez, attempted to bring a third-party claim for unfair and deceptive trade practices against Fernando Ycaza. That claim was dismissed with prejudice.
Perez then tried to salvage an immediate appeal by filing a motion asking the court to either:
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Add Rule 54(b) “magic language” (i.e., no just reason for delay), or
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Convert the dismissal to without prejudice.
The Ruling
The court denied both requests—firmly.
Applying the Fourth Circuit’s Braswell Shipyards framework, Judge Beyer acknowledged that the dismissal was “final” as to that claim, but emphasized that finality alone is not enough. The real question is whether there is no just reason for delay, and the burden rests squarely on the movant.
Perez fell short.
The court found:
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The dismissed and remaining claims were closely intertwined.
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Future developments could moot the need for appeal entirely.
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Immediate appeal risked duplicative appellate review.
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The alleged hardship—delay and expense—was simply the ordinary consequence of litigation, not the “undue hardship” required for Rule 54(b).
Just as importantly, the court rejected the notion that labeling a dismissal “with prejudice” somehow entitles a party to immediate appeal. Rule 54(b) doesn’t turn on that distinction.
Commentary
This is a clean, practical opinion that bankruptcy practitioners should keep handy—particularly in multi-party adversary proceedings where the temptation for piecemeal appeals is strong.
Two takeaways stand out:
First, Rule 54(b) is not a drafting oversight doctrine.
Perez’s motion essentially read as if the court had forgotten to include the required language. Judge Beyer makes clear: those words are not automatic—they must be earned.
Second, litigation inconvenience is not “undue hardship.”
The desire to avoid delay, expense, or even a second trial is baked into the system. If that were enough, Rule 54(b) would swallow the rule against interlocutory appeals.
In short, this decision reinforces what most of us already know—but occasionally need to be reminded of:
appeals come at the end, not along the way.
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