Successful Motions for Reconsideration Require Extraordinary Circumstances

(Excerpt) Motions for reconsideration are not recognized under the Federal Rules of Civil Procedure (the “Rule(s)”) or the Federal Rules of Bankruptcy Procedure (the “Bankruptcy Rule(s)”). A party seeking reconsideration of an order in the bankruptcy courts can file either: (1) a motion to alter or amend a judgment under Bankruptcy Rule 9023, if the order is interlocutory; or (2) a motion for relief from judgment under Bankruptcy Rule 9024, if the order is a final one. The applicable rules to motions for reconsideration are different depending on whether the motion is for an interlocutory or final order. There are various policies surrounding both types of motions for reconsideration. These underlying polices have helped define which rules are applicable for either motion. The motion to reconsider standards are demanding and strict and thus a court faced with such a motion is most often likely to deny the motion. This presents the query – what extraordinary circumstances are required for a motion to reconsider to be granted. This article addresses how courts interpret the issue of which extraordinary circumstances are worthy of a court’s reconsideration of an order. Part I examines the circumstances surrounding reconsideration of an interlocutory order. Part II analyzes the circumstances surrounding reconsideration of a final order