Di Giorgio v. Lee (In Re Di Giorgio)

200 B.R. 664, 96 Daily Journal DAR 13602, 1996 U.S. Dist. LEXIS 13266, 1996 WL 520144
CourtDistrict Court, C.D. California
DecidedSeptember 6, 1996
DocketBankruptcy No. CV 95-6074 WJR. No. LA 95-15503-CA. Adv. No. AD 95-1737-CA
StatusPublished
Cited by10 cases

This text of 200 B.R. 664 (Di Giorgio v. Lee (In Re Di Giorgio)) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Di Giorgio v. Lee (In Re Di Giorgio), 200 B.R. 664, 96 Daily Journal DAR 13602, 1996 U.S. Dist. LEXIS 13266, 1996 WL 520144 (C.D. Cal. 1996).

Opinion

OPINION

REA, District Judge.

Defendants appeal the bankruptcy court’s permanent injunction against the enforcement of California Code of Civil Procedure § 715.050, which allows execution of a valid writ of possession in an unlawful detainer ease despite the filing of a post-judgment bankruptcy petition by the tenant. After having reviewed the papers submitted in support of and in opposition to the foregoing appeal, the file in this ease, and the applicable authorities, the Court AFFIRMS the bankruptcy court’s ruling for the reasons set forth herein.

BACKGROUND 1

Plaintiffs, Fred Di Giorgio and Irene Di Giorgio, entered into a lease agreement with defendant Josephine Lee whereby the Di Giorgios rented a residential property (“the premises”) for a rental fee of $1,650 per month. The lease expired in July 1992 but was extended to January 14, 1995.

The Di Giorgios failed to make their rental payments from August 1994 to January 1995. On January 6, 1995, Lee served the Di Giorg-ios with a Notice to Pay Rent or Quit, demanding $8,000 on or before January 9,1995. The Di Giorgios failed to pay the outstanding rental payments, and Lee initiated an unlawful detainer action on January 17, 1995. On January 20, 1995, the parties entered into a Stipulation for Judgment. On February 15, 1995, judgment was entered wherein the lease was forfeited and the Di Giorgios agreed that they owed Lee $10,224 under the lease. The judgment further provided that a writ of possession was to issue forthwith with a final lockout no earlier than March 6, 1995.

The municipal court issued a writ of possession pursuant to the judgment on February 16, 1995. In accordance with the writ, defendant Los Angeles Sheriffs Department served the Di Giorgios with a Notice to Vacate the premises on February 23, 1995.

On March 2, 1995, the Di Giorgios filed a voluntary petition for bankruptcy under Chapter 7 of Title 11 of the U.S.Code. At the time of the filing, the Di Giorgios were still in possession of the premises. Although federal bankruptcy law provides for an automatic stay on all proceedings involving property of the bankruptcy estate, the Sheriffs Department indicated that it planned to enforce the writ of possession without first requiring Lee to obtain relief from the automatic stay. Its authority was the recently enacted California Code of CM Procedure § 715.050, which provides for the enforce *668 ment of a writ of possession despite the tenant’s prior filing of a bankruptcy petition.

The Di Giorgios brought an action in the bankruptcy proceeding against Lee, Sheriff Sherman Block and the Sheriff’s Department to enjoin the enforcement of § 715.050. On April 18, 1995, the bankruptcy court issued a permanent injunction barring Sheriff Block and the Sheriffs Department from enforcing § 715.050. The bankruptcy court held that the Di Giorgios’ possession of the premises at the commencement of the bankruptcy action constituted a property interest that was part of the bankruptcy estate and consequently triggered the protections of the automatic stay under 11 U.S.C. § 362. Therefore, the bankruptcy court held, the unlawful detainer action constituted: (1) the commencement or continuation of a judicial proceeding against the Di Giorgios, in violation of § 362(a)(1); (2) the enforcement against the Di Giorgios of a judgment obtained before the commencement of the bankruptcy case, in violation of § 362(a)(2); and (3) an act to obtain possession of property of the estate, to obtain property from the estate, or to exercise control over property of the estate, in violation of § 362(a)(3). The bankruptcy court enjoined the enforcement of § 715.050 in all eases due to its preemption by federal bankruptcy law.

Defendants Josephine Lee, the Sheriffs Department and Sheriff Block appeal the bankruptcy court’s decision.

JURISDICTION

The Court has appellate jurisdiction over this matter pursuant to 28 U.S.C. § 158(a), which enables the district courts to decide appeals from final judgments, orders and decrees of bankruptcy courts. Judgment was entered in the bankruptcy court on June 26, 1995. A timely notice of appeal was filed on July 6, 1995.

STANDARD OF REVIEW

Factual findings of bankruptcy courts are reviewed under the clearly erroneous standard. Mann v. Alexander Dawson, Inc., 907 F.2d 923, 926 (9th Cir.1990). Conclusions of law are reviewed de novo. Daniels-Head & Assoc. v. William M. Mercer, Inc., 819 F.2d 914, 918 (9th Cir.1987). Except as indicated, the relevant facts in this case are not disputed by the parties.

DISCUSSION

I. JURISDICTION

A. Mootness

The jurisdiction of federal courts extends only to live cases or controversies. U.S. Const. art. III, § 2, cl. 1. When the plaintiffs “personal stake in the outcome of the controversy” ceases to exist during the course of litigation, there is no longer a live controversy and the case generally should be dismissed as moot. See United States Parole Comm’n v. Geraghty, 445 U.S. 388, 397, 100 S.Ct. 1202, 1209, 63 L.Ed.2d 479 (1980) (citations omitted) (quotations omitted). Appellants claim that the Di Giorgios had vacated the premises as of the date of the hearing on the injunction, and that thus no case or controversy existed because the Di Giorgios no longer had any property interest in the rental property. As a result, appellants argue, the bankruptcy court erred in ruling on the constitutionality of § 715.050. The Di Giorgios, however, claim that they had not vacated the premises by the date of the hearing.

Because the record has not been sufficiently developed, the Court is unable to hold that this action is moot. Appellants claim to have raised this argument in their opposition to the preliminary injunction. However, although the bankruptcy court found that the Di Giorgios were in possession of the premises at the time of the filing of the petition for bankruptcy, it did not make any finding as to when they vacated the premises, nor did the bankruptcy court address the mootness argument. Findings of Fact and Conclusions of Law at ¶ 12. It is inappropriate for an appellate court to consider facts beyond the scope of the record developed before the lower court. See, e.g., USA Petroleum Co. v. Atlantic Richfield Co., 13 F.3d 1276 (9th Cir.1994); DeTomaso v. McGinnis, 970 F.2d 211 (7th Cir.1992); Diversified Numismatics, Inc. v. City of Orlando, 949 F.2d 382 (11th Cir.1991). Therefore, the record *669

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200 B.R. 664, 96 Daily Journal DAR 13602, 1996 U.S. Dist. LEXIS 13266, 1996 WL 520144, Counsel Stack Legal Research, https://law.counselstack.com/opinion/di-giorgio-v-lee-in-re-di-giorgio-cacd-1996.