Case Explained: PAUL SCHULTZ Debtor – v. H. JASON GOLD Trustee – Appellee and KEVIN R. MCCARTHY Trustee

Court: United States Court of Appeals for the Fourth Circuit

Filed: 2026-07-10

The Fourth Circuit affirmed the district court’s orders regarding Paul Schultz’s Chapter 11 bankruptcy proceedings and dismissed two specific appeals for lack of jurisdiction. The court held that there was no reversible error in the district court’s affirmance of the bankruptcy court’s summary judgment against Schultz, its denial of motions to reconsider, and its dismissal of duplicative appeals challenging the validity of a loan by Clear Sky Financial, LLC. Additionally, the court affirmed the district court’s order converting Schultz’s case from Chapter 11 to Chapter 7, reviewing that determination under an abuse of discretion standard, as well as orders denying emergency motions for temporary restraining orders, preliminary injunctions, and stays. The court applied the standard of review for bankruptcy conversions (abuse of discretion) and denials of preliminary injunctions (abuse of discretion), finding no error in the lower courts’ rulings. Regarding Nos. 25-2405 and 25-2406, which involved appeals of orders denying motions to disqualify opposing counsel, the court dismissed these appeals because the orders were neither final nor appealable interlocutory or collateral orders under 28 U.S.C. §§ 1291 and 1292, thereby lacking subject matter jurisdiction. The court also noted that it lacks jurisdiction to review denials of temporary restraining orders. As a practical consequence, the district court’s rulings upholding the loan enforceability, denying Schultz’s procedural motions, and converting his bankruptcy case to Chapter 7 remain in effect. The dismissed appeals regarding counsel disqualification are terminated without prejudice to filing a proper appeal if a final order is subsequently entered. All pending administrative motions filed by Schultz were denied, and oral argument was dispensed with.

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