He's handled scores of bankruptcy cases as a lawyer. Now he's Erie's new bankruptcy judge

An Erie lawyer who has handled thousands of bankruptcy cases since the late 1990s will be able to spend the rest of his career ruling on bankruptcy cases from the bench.

John C. Melaragno, who started practicing in Erie in 1997, has been named the new judge for the Erie Division of U.S. Bankruptcy Court for the Western District of Pennsylvania. He succeeds Thomas P. Agresti, 72, who retired Feb. 10 after 19 years as the federal bankruptcy judge for Erie.

Stepping down: Agresti retiring as Erie bankruptcy judge; federal appeals court to pick successor

"I am looking forward to serving the residents of northwestern Pennsylvania as Erie's next bankruptcy judge," Melaragno said.

Melaragno, 50, referred to Agresti and Agresti's predecessor as bankruptcy judge for Erie, the late Warren W. Bentz.

"I know that I have big shoes to fill following in the footsteps of Judge Agresti and Judge Bentz and I hope to continue the excellent work that they have done and continue the well-established legacy of the Erie Bankruptcy Court," Melaragno said.

Melaragno will be based at federal courthouse in Erie

The judges of 3rd U.S. Circuit Court of Appeals, based in Philadelphia, appointed Melaragno following recommendations from a merit-selection committee. The Circuit Court judges appointed Melaragno on Feb. 16, but his appointment became official last week, after he was notified that he had passed the required FBI background check.

Melaragno will be sworn in on June 12 in the bankruptcy courtroom at the federal courthouse complex on Perry Square in Erie, according to Melaragno and the U.S. Bankruptcy Court.

Bankruptcy judges serve renewable 14-year terms with no mandatory retirement age. By law, the salary for bankruptcy judges in 2023 is $213,992 , or 92% of the $232,600 salary for federal district judges.

Like Agresti, Melaragno will have his chambers at the federal courthouse complex on Perry Square and will hear cases from Erie and Pittsburgh, where the Western District of Pennsylvania is based. The breakdown of Melaragno's caseload is expected to mirror Agresti's.

A total of 75% of Agresti's cases originated in Erie and nine other counties in northwestern in Pennsylvania that make up the Erie Division for U.S. Bankruptcy Court: Crawford, Warren, McKean, Venango, Forest, Elk, Jefferson, Clarion and Mercer. Agresti's other cases originated in Pittsburgh and elsewhere in the Western District.

Decisions of bankruptcy judges are appealed to federal district judges or an appellate panel made up of bankruptcy judges from another district. Unlike bankruptcy judges, whom circuit judges appoint, federal district judges, circuit judges and Supreme Court justices are nominated by the president, confirmed by the Senate and appointed for life.

Erie risked losing its bankruptcy judgeship

Melaragno will be one of four bankruptcy judges in the Western District of Pennsylvania. The other three are in Pittsburgh: Chief Judge Gregory L. Taddonio and Judges Jeffrey A. Deller and Carlota Bohm.

Melaragno will be the fourth judge seated in the Erie Division of U.S. Bankruptcy Court for the Western District of Pennsylvania since Congress created federal bankruptcy judgeships in 1978. Before then, court-appointed referees presided over bankruptcy cases in Erie dating back to the 1860s.

The first bankruptcy judge in Erie was William Washabaugh, who served from 1978 to 1985. Succeeding him was Bentz, who started in 1985, retired in 1999 and continued to hear cases on a recall basis until 2009. Bentz died in 2014 and Washabaugh in 1988.

Death of a jurist: Judge Bentz remembered as 'hard working and practical'

The 3rd U.S. Circuit Court of Appeals selected Agresti as bankruptcy judge in October 2003. He took the oath of office in April 2004.

Bankruptcy filings in the Western District of Pennsylvania have dropped significantly since the pandemic, according to court statistics. The trend threatened to leave the bankruptcy judgeship in Erie vacant when Agresti retired.

Agresti and federal lawmakers pushed for the seat to get filled. They said they expected bankruptcy filings to increase, and they said Erie needs a bankruptcy judge to prevent bankruptcy litigants in northwestern Pennsylvania from having to travel to Pittsburgh for hearings.

The chief judge for the 3rd Circuit, Michael A. Chagares, also advocated to fill the seat. The full 3rd Circuit agreed and in September started the process to make an appointment.

Melaragno has handled thousands of bankruptcy cases as a trustee

Melaragno, a partner in the firm of Melaragno, Placidi & Parini, has plenty of experience in bankruptcy litigation. He is resigning from the firm with his appointment as judge.

Melaragno's private practice focused on representing clients in U.S. Bankruptcy Court, and since 2004 he had been on a panel of trustees who oversee the administration of Chapter 7 bankruptcy cases in the Western District of Pennsylvania. Debtors who file under Chapter 7 must liquidate their assets to pay creditors.

Keeping a local judgeship: Why Erie owes a debt of gratitude to newly retired bankruptcy judge

As a Chapter 7 trustee, Melaragno interviewed debtors and liquidated their assets, with final approval coming from the bankruptcy judges. He acted as a Chapter 7 trustee in an estimated 6,000 cases.

Melaragno was also appointed as a trustee in three Chapter 11 cases, in which debtors reorganize to pay creditors over time. The three cases included the high-profile bankruptcy of Creditron Financial Corp., the Erie-based telemarketing business that did business as the Telatron Marketing Group Inc. and filed for bankruptcy in 2008.

As trustee, Melaragno took over the management of Creditron after it filed for Chapter 11. The business was sold in U.S. Bankruptcy Court in 2012.

Agresti was the bankruptcy judge in the Creditron case and approved Melaragno's Chapter 11 trusteeship. Agresti also presided over many of the other cases in which Melaragno was involved.

"He's an excellent choice." Agresti said of Melaragno. "He will serve the people of the Erie Division and the Western District of Pennsylvania with honor and distinction."

A legal career that started with an interest in patent law

Melaragno lives in Fairview with his wife, Cammy, and their three children. As a lawyer, he has also focused on personal-injury cases.

Recent Chapter 11 case: Meadville restaurant goes from expansion mode to filing for bankruptcy

He graduated from law school at Case Western Reserve University in Cleveland in 1997. He has a bachelor's degree in mechanical engineering from Gannon University and graduated from Cathedral Preparatory School, also in Erie, in 1990.

With his engineering background, Melaragno started his legal career hoping to specialize in patent law, according to the biography on his law firm's website.

"However, after briefly clerking as a patent lawyer, he found he did not enjoy the work," according to the biography. "John then turned to general practice and eventually narrowed his focus to personal injury and bankruptcy law."

Agresti said Melaragno's "well-rounded and broad-based background" in the law beyond bankruptcy is an asset. He said the experience will give Melaragno a range of perspectives as he hears bankruptcy cases.

"That is all going to serve him very well on the bench," Agresti said.

Contact Ed Palattella at epalattella@timesnews.com. Follow him on Twitter @ETNpalattella.

This article originally appeared on Erie Times-News: Veteran bankruptcy lawyer is appointed Erie's new bankruptcy judge