Bass v. Tiscareno (In re Tiscareno)

551 B.R. 1, 2016 Bankr. LEXIS 1980
CourtUnited States Bankruptcy Court, N.D. California
DecidedMay 11, 2016
DocketCase No. 14-43584 CN; Adversary No. 14-4178
StatusPublished
Cited by2 cases

This text of 551 B.R. 1 (Bass v. Tiscareno (In re Tiscareno)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bass v. Tiscareno (In re Tiscareno), 551 B.R. 1, 2016 Bankr. LEXIS 1980 (Cal. 2016).

Opinion

MEMORANDUM DECISION AFTER TRIAL

Charles Novack, U.S. Bankruptcy Judge

On February 23 and 24, 2016, this court conducted a trial in the above adversary proceeding. While the plaintiffs were represented by counsel, the defendant represented himself. Plaintiffs Kim Bass, Kristy Graham and Jon Zimmerman (collectively, “Plaintiffs”) seek to deny Chapter 7 debtor and defendant Tony Tiscareno his Chapter 7 discharge, and obtain on their individual behalf non-dischargeable judgments primarily arising out of Tiscare-no’s conduct in the parties’ multi-faceted pre-petition litigation. The following constitutes this court’s findings of fact and conclusions of law under F.R.B.P. 7052.

This dispute, which has resulted in several years of District Court, Superior Court, and now Bankruptcy Court litigation, has its origins in a movie screenplay. Tiscareno is a general contractor/painter by trade and an aspiring screenplay writer at heart. None of his screenplays have been developed into a movie. In the 1990s, Tiscareno penned a screenplay entitled “FastGlass,” an action thriller involving “kit” airplanes. Tiscareno registered his initial draft of FastGlass with the United States Copyright office in 1998, and his attempts to produce or market the screenplay were not successful. Plaintiff Kim Bass is a professional screenwriter, producer and director. He has written screenplays for “direct to video” movies, several of which he also has directed, and has enjoyed a career in television. In the early 2000s, Bass, who is a pilot, met David Riggs, a fellow pilot, and, unbeknownst to Bass, a three time felon and all-around fraud. Bass teamed with Riggs to produce several commercials, and they eventually agreed to make three low budget movies. Bass agreed to write, and direct these movies, the first of which was initially titled “Fast Glass.” Bass wrote and copyrighted the Fast Glass screenplay,. which was an action thriller involving “kit airplanes” and the drug trade.1 Afterburner, Inc., a company owned by Riggs, solicited investors for these movies and acted as the producer. Plaintiff Jon Zimmerman was one of the investors in this movie troika. The budget for all three movies was three million dollars.

Midway through the Fast Glass production, two' investors contacted Bass and asked why the movie was over budget. Bass was not over budget. Instead, Bass and the investors learned to their chagrin that Riggs had embezzled approximately two million dollars from Afterburner, Inc. Not surprisingly, litigation ensued in Los Angeles County Superior Court in 2008, engulfing, among others, Zimmerman and [6]*6his fellow investors as plaintiffs, and Riggs, Bass, and Afterburner, Inc. as defendants (the “Zimmerman Litigation”). Despite this litigation, Bass completed the movie (after purchasing Rigg’s rights to the movie from his bankruptcy estate), and eventually sought domestic and international distributors for it.

This court is uncertain regarding when Tiscareno met Riggs, and how Riggs learned that Tiscareno has written his FastGlass screenplay. Regardless, Riggs provided him with a copy of the Zimmerman Litigation complaint and the addresses of the investors, and encouraged him to 1) claim that Bass’s screenplay plagiarized his work and 2) intervene in the Zimmerman Litigation. Riggs’s motivation was clear, since Tiscareno’s claims possibly would lessen the attention on the embezzlement claims. Tiscareno willingly took the bait, and on September 25, 2008, Tis-careno, using stationary in the name of “Power Curve International Productions,” sent letters to the investors in which he informed them that Bass had stolen his screenplay and that it was his “intention to determine if any of the investors acted in a complicitious manner with foreknowledge of these facts.” The September 25th letter also accused Zimmerman of conspiring with Bass to steal the “film print and other elements to Fast Glass, with the intent to re-release it under the fraudulent title: Going Vertical2.” Tiscareno ended the letter by asking Zimmerman to contact him within ten days to “discuss your involvement in this matter.”

The investors rejected Tiscareno’s September 25th letter, and on December 2, 2008 Tiscareno filed an initial and then an amended (pro se) complaint in intervention against Bass, Zimmerman and the other investors in the Zimmerman Litigation. Tiscareno’s attempt to intervene in the Zimmerman Litigation led to a litany of sanctions awards against him. After the Los Angeles County Superior Court granted the investors’s motions to strike his complaints in intervention, it sanctioned Tiscareno $8200 due to his refusal to withdraw the amended complaint in intervention. The Los Angeles County Superior Court’s June 8, 2010 order, which imposed these sanctions under California Code of Civil Procedure 128.7, states, in pertinent part, that:

“The motion for sanctions is granted for the factual and legal reasons stated in the motion. Tiscareno filed his first amended complaint in intervention without first seeking court permission pursuant to Code of Civil Procedure § 387(a) and it was filed for the improper purpose of harassing the moving parties and needlessly increasing their litigation expenses. Tiscareno received sufficient warning that his first amended complaint in intervention was filed without the required court permission. Tiseare-no was served by mail on October 19, 2009, with the proposed motion for sanctions. Even though the “safe harbor” period expired November 16, 2009 ... Tiscareno did not withdraw his first amended complaint in intervention. On November 19, 2009, this court struck Tiscareno’s first amended complaint pursuant to a noticed motion. Pursuant to Code of Civil Procedure § 128.7, Tis-careno shall pay a $3200.00 sanction to Jon Zimmerman, Robert Zimmerman, Kevin Heard and Richard Mattern for the attorneys fees they incurred as explained in the motion.”3

[7]*7Tiscareno’s motion to reconsider the June 8, 2010 sanctions order was denied and led to the imposition of an additional $4500 in sanctions against him under CCP § 128.7. The Superior Court held in this sanctions order that “Tiscareno’s motion for reconsideration was filed for the improper purpose of harassing the moving parties and needlessly increasing their litigation expenses.”

Tiscareno unsuccessfully appealed both sanctions orders. The Court of Appeal, Second Appellate Department’s unpublished decision (issued on July 6, 2011) which affirmed both sanctions awards provides a detailed history of Tiscareno’s attempts to intervene in the Zimmerman Litigation, and his rationale for filing the amended intervention complaint. The Court of Appeal noted that:

“Tiscareno’s opening brief offers no excuse for his failure to seek or obtain the required leave of court to intervene. Moreover, the justification Tiscareno offers for his failure to withdraw his improper pleading, after having been alert- ■ ed to its impropriety and the possibility of sanctions, affirmatively confirms the trial court’s determination that sanctions should be imposed. Ignoring the patent impropriety of his pleading, Tiscareno explains that he refused to withdraw the improper pleading in the face of the proposed motion for sanctions because to do so would have required him to accede to the Zimmerman parties’ demand that he comply with section 387.

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551 B.R. 1, 2016 Bankr. LEXIS 1980, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bass-v-tiscareno-in-re-tiscareno-canb-2016.