Beste v. Lewin

488 B.R. 663, 2012 WL 5877483
CourtDistrict Court, N.D. California
DecidedNovember 20, 2012
DocketNos. C-12-1625 EMC, C-12-1626 EMC
StatusPublished
Cited by2 cases

This text of 488 B.R. 663 (Beste v. Lewin) is published on Counsel Stack Legal Research, covering District 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
Beste v. Lewin, 488 B.R. 663, 2012 WL 5877483 (N.D. Cal. 2012).

Opinion

ORDER (1) AFFIRMING BANKRUPTCY COURT’S ORDER DISMISSING COMPLAINT AND AMENDED COMPLAINT AND DENYING MOTION FOR FURTHER FINDINGS; AND (2) DENYING MOTION TO SET ASIDE SONOMA COUNTY SUPERIOR COURT’S VEXATIOUS LITIGANT ORDER

EDWARD M. CHEN, District Judge.

I. INTRODUCTION

Appellant, Paul Den Beste, brought causes of action against Appellee, Donald Lewin, John DeMeo and Bradford DeMeo in Bankruptcy Court alleging violations of 11 U.S.C. § 362(a), the automatic stay, and 42 U.S.C. § 1983.1 Pending before the [666]*666Court is Appellant’s appeal from the Bankruptcy Court decision dismissing his Complaint and Amended Complaint, and denying the Motion for Further Findings of Facts and Conclusions of Law. Appellant seeks to reverse both the Bankruptcy Court’s orders and set aside a 2007 Sono-ma County Superior Court decision labeling him a vexatious litigant.

II. FACTUAL & PROCEDURAL BACKGROUND

Three years before Appellant Beste filed for bankruptcy, he was sued by Appellee DeMeo over attorney’s fees. Demeo v. Beste, No. MCV-178973 (March 27, 2007). During that case, and upon DeMeo’s request, in April of 2007, Judge Cox of the Sonoma County Superior Court entered an order declaring Beste a vexatious litigant, finding that “[d]efendants have engaged in a series of actions which repeatedly seek to relitigate the same basic assertion determined against them.” Demeo v. Beste, No. MCV-178973 (March 27, 2007). Appel-lee Lewin, pursuant to his duties as clerk of the Sonoma County Court, subsequently filled out the vexatious litigant prefiling order form and sent a copy to the Judicial Council. (Compl. Ex. A.) On this form, Lewin entered Beste’s name under the preprinted section stating “[pjlaintiff or cross-complainant subject to this order.” (Compl. Ex. A.) This may have been clerical error as Beste was clearly a defendant in this action and there is nothing demonstrating that he was a cross-complainant. There are no allegations in the Complaints or Appellant’s Briefs however that Lewin took any other relevant action since 2007.

In September of 2010, Beste filed for Chapter 13 Bankruptcy. (Appellee’s Responding Brief 4.) In April of 2011, during this bankruptcy, Beste filed an adversary proceeding in Bankruptcy Court against Lynn Searle, a lawyer for one of Beste’s creditors, alleging that Searle violated the automatic stay by sending Beste a settlement letter. In Re Paul and Melody Beste, Memo Re: Sanctions, No. 10-13558, 1. In May of 2011, Searle filed a Motion to Dismiss, attaching a copy of the vexatious litigant list from the Judicial Council which included Beste’s name as a result of the Sonoma County ruling. (Appellee’s Responding Brief 5.) This list does not indicate whether Beste was a plaintiff or defendant when he was declared a vexatious litigant. (Compl. Ex. A.) Although it is not entirely clear from the record, it appears that attaching this list had no effect on the Bankruptcy Court’s decision to dismiss Beste’s case against Searle. ' Nor does Beste allege that the vexatious litigant list had any effect on the Bankruptcy Court’s decision to dismiss that case. The Bankruptcy Court converted Searle’s motion to a Motion for Summary Judgment and dismissed the case based on Searle’s declaration claiming she had no knowledge of the stay and therefore could not have willfully violated it. In Re Paul and Melody Beste, Memo on Mot. To Make Additional Findings, No. 10-13558,1.

While Searle’s Motion to Dismiss was pending, in June of 2011, Beste sent a letter to Appellee Lewin, clerk of the So-noma County Superior Court, accusing him of erroneously preparing the vexatious litigant prefiling order by intentionally labeling Beste a plaintiff in the action against the DeMeos when he was in fact a defendant. (Appellant’s Opening Brief 3-4.) The letter further asked Lewin to correct these errors and remove Beste from the vexatious litigant list. Id.

[667]*667Lewin took no action and in November of 2011, Beste filed a complaint in Bankruptcy Court claiming that Lewin, on behalf of the DeMeos, intentionally falsified the vexatious litigant prefiling order form he submitted to the Judicial Council by labeling Beste a plaintiff. (Compl. 3.) Beste further alleged that Lewin failed to take action to correct the false and fraudulent prefiling order form and continued use of this form against Beste constitutes a violation of the automatic stay under 11 U.S.C. § 362(a). (Compl. 4.) Lewin filed a Motion to Dismiss the Complaint and on January 5, 2012, Beste filed an Amended Compliant in Bankruptcy Court, the day before the hearing for the Motion to Dismiss the original Complaint and outside the 21 day time limits for filing an amended complaint. (Tr. Case No. 10-13558, 5, January 6, 2012.) The Amended Complaint alleged the same fraudulent actions as the Complaint yet it added a claim against Lewin for violation of 42 U.S.C. § 1983, stating that he violated Beste’s due process rights when he falsified the prefil-ing order. (Amended Compl. 7.) On January 6, 2012, the Bankruptcy Court granted Lewin’s Motion to Dismiss, dismissing both the Original and Amended Complaints. (Tr. Case No. 10-13558, 7, January 6, 2012.)

On January 23 2012, Beste filed a Motion for Further Findings and to amend the order granting the Motion to Dismiss. (P.’s Mot. To Make Further Findings). Beste claims that the Bankruptcy Court’s order did not adequately explain why the continued operation of Lewin’s falsified vexatious litigant order did not violate the bankruptcy stay. (Appellant’s Opening Brief 15.) The Bankruptcy Court denied this motion. Finally, in March of 2012, the Bankruptcy Court denied discharge of Beste’s debts thus bringing the automatic stay to an end. (Appellee’s Responding Brief 4.)

On May 30, 2012 Beste filed an appeal asking this Court to reverse the Bankruptcy Court’s decision to dismiss his Complaint and Amended Complaint and to set aside the vexatious litigant prefiling order entered in 2007 by the Sonoma County Superior Court. (Appellant’s Opening Brief 15.)

III. DISCUSSION

A. Standard of Review for Appeals of Bankruptcy Court Decisions

The scope or applicability of the automatic stay under the Bankruptcy Code is reviewed de novo because it is a question of law. See McCarthy, Johnson & Miller v. N. Bay Plumbing, Inc. (In Re Pettit), 217 F.3d 1072, 1077 (9th Cir.2000). The standard for review of a Bankruptcy Court’s decision to grant a motion to dismiss is also de novo. See In Re Warren, 568 F.3d 1113, 1116 (9th Cir.2009).

Under Federal Rule of Civil Procedure 12(b)(6), a party may move to dismiss based on the failure to state a claim upon which relief may be granted. See Fed. R.Civ.P.

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Bluebook (online)
488 B.R. 663, 2012 WL 5877483, Counsel Stack Legal Research, https://law.counselstack.com/opinion/beste-v-lewin-cand-2012.