Elton F. Alexander, et al. v. Pacific Western Bank, et al.

CourtUnited States Bankruptcy Court, N.D. Ohio
DecidedDecember 19, 2025
Docket24-01053
StatusUnknown

This text of Elton F. Alexander, et al. v. Pacific Western Bank, et al. (Elton F. Alexander, et al. v. Pacific Western Bank, et al.) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Elton F. Alexander, et al. v. Pacific Western Bank, et al., (Ohio 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF OHIO

Elton F. Alexander, et al., Case No. 1:25-mc-00012-PAB

Movants,

-vs- JUDGE PAMELA A. BARKER

Pacific Western Bank, et al.,

Respondents. MEMORANDUM OPINION & ORDER

Currently pending before the Court is Movants Elton F. Alexander and Cheri D. Alexander’s (“Debtors”) Motion to Withdraw Reference of Adversary Proceeding and Transfer to District Court (the “Motion to Withdraw”). (Doc. No. 1.) Respondent Pacific Western Bank (“Pacific Western”) filed an Opposition to the Motion to Withdraw on March 26, 2025. (Doc. No. 2.) The Debtors filed supplemental briefing on October 23, 2025, to which Pacific Western responded to on November 6, 2025. (Doc. Nos. 4, 5.) For the following reasons, the Debtors’ Motion to Withdraw is DENIED. I. Procedural History On June 1, 2022, the Debtors initiated their bankruptcy case by filing their Petition under Chapter 13 of the Bankruptcy Code. (In re Alexander, Case No. 22-11581-jps (the “Main Case”), Doc. No. 1.) With their Petition, the Debtors filed their bankruptcy schedules. (Id.) Therein, the Debtors disclosed having contingent claims against “David Patterson, Esq.,[] Halon, LLC and Myron and Kimberly Washington related to the improper sale of real estate in Capitalsource Bank v. Elton F. Alexander, et al. Cuyahoga County Case No. CV-11-747750.” (Id. at Page 18.) Then, on September 14, 2022, the Debtors’ filed amended schedules and did not include any claims related to the sale of real estate in “Capitalsource Bank v. Elton F. Alexander, et al. Cuyahoga County Case No. CV-11-747750.” (Main Case Doc. No. 38.) On November 17, 2022, the Bankruptcy Court issued an order confirming the Debtors’ Chapter 13 plan. (Main Case Doc. No. 47.) Approximately one month later, on December 16, 2022, the Debtors filed a lawsuit against Halon LLC, Pacific Western, Aeon Financial, LLC, and David N. Patterson, Esq. in the Cuyahoga County Court of Common Pleas. (Alexander, et al. v. Pacific Western Bank, 24-01053-jps (the “Adv. Proc.”), Doc. No. 1, Page 3.) The claims raised in the

Complaint relate to the sale of real estate in “Capitalsource Bank v. Elton F. Alexander, et al. Cuyahoga County Case No. CV-11-747750.” (Id.) Nearly a year later, on November 27, 2023, Debtors amended their schedules to disclose their claims against Pacific Western. (Main Case Doc. No. 62, Page 8.) On March 26, 2024, the Debtors dismissed the state court action. Then, on June 11, 2024, the Debtors refiled their state case. (Adv. Proc. Doc. No. 1, Page 4, Ex. A.) On July 15, 2024, Pacific Western moved to dismiss arguing, among other things, that the Debtors were judicially estopped from pursuing their claims based on the Confirmation Order and because of their failure to disclose the claims against Pacific Western. (Adv. Proc. Doc. No. 1, Ex. B.) A few months later, on September 4, 2024, Pacific Western removed the case to the Bankruptcy Court pursuant to 28 U.S.C. § 1452(a). (Adv. Proc. Doc. No. 1.)

On October 3, 2024, the Debtors filed a “Motion to Remand the State Court Action and Motion for Attorney Fees Against Defendant Pacific Western Bank” (the “Motion to Remand’) (Adv. Proc. Doc. No. 9.) Pacific Western opposed the Motion to Remand on October 17, 2024. (Adv. Proc. Doc. No. 11.) On December 11, 2024, the Bankruptcy Court held a hearing on the Motion to Remand. Then, on January 14, 2025, the Bankruptcy Court issued an order denying the Motion to Remand: The matter before the Court is the Debtors’ Motion for Remand (Doc. No. 9). Pacific Western Bank opposes the relief sought (Doc. No. 11). A hearing was held 2 on the matter on December 11, 2024. For the reasons stated on the record, Debtors’ Motion fails to state good cause and is denied.

(Adv. Proc. Doc. No. 20.) Two weeks later, on January 28, 2025, the Debtors filed their Motion to Withdraw in this Court. (Adv. Proc. Doc. No. 22; Doc. No. 1.) On February 11, 2025, Pacific Western filed its Opposition to the Motion to Withdraw. (Adv. Proc. Doc. No. 25; Doc. No. 2.) The Debtors did not file a reply in support of their Motion to Withdraw. On March 12, 2025, the Bankruptcy Court issued an order transmitting the Motion to Withdraw and Pacific Western’s Opposition to this Court. (Adv. Proc. Doc. No. 32.)1 On March 20, 2025, Pacific Western refiled their Motion to Dismiss in the Bankruptcy Court, arguing again that that Debtors were judicially estopped from pursuing their claims based on the Confirmation Order and because of their failure to disclose the claims against Pacific Western. (Adv. Proc. Doc. No. 33.) The Debtors opposed the Motion to Dismiss on April 3, 2025, to which Pacific Western replied on April 10, 2025. (Adv. Proc. Doc. Nos. 35, 42.) As of the date of this Memorandum Opinion and Order, the Bankruptcy Court has not ruled on the Motion to Dismiss. While the Motion to Withdraw was pending, on September 26, 2025, the Debtors filed a “Request for Judicial Notice in Support of Movants’ Motion to Withdraw Reference of Adversary Proceeding and Transfer to District Court.” (Doc. No. 3.) Therein, the Debtors requested that the Court take judicial notice of the Bankruptcy Court issuing an Order of Discharge, which was entered on September 24, 2025. (Id.; see also Main Case Doc. No. 93.) On October 2, 2025, the Court issued a non-doc order requesting further briefing on “what, if any, impact the Bankruptcy Court’s Order of

1 Pacific Western refiled its Opposition with this Court on March 25, 2025. (Doc. No. 2.) 3 Discharge has upon the pending Motion to Withdraw Reference.” On October 23, 2025, the Debtors filed their brief, to which Pacific Western responded on November 6, 2025. (Doc. Nos. 4, 5.) Notably, the Debtors’ position changed. In their brief, the Debtors assert that “[b]y issuing the Order of Discharge, the [Debtors] state that the appropriate thing for this Court to do is sua sponte deny the [Debtors’] Motion to Withdraw the Reference and pursuant to 28 U.S.C. § 1452(b) order remand of the underlying proceedings back to the Cuyahoga County Court of Common Pleas.” (Doc. No. 4,

PageID #82.) Then, in the main bankruptcy case, on November 18, 2025, the Chapter 13 trustee filed her Final Report and Account. (Main Case Doc. No. 95.) Therein, “[t]he trustee certifies that, pursuant to Federal Rule of Bankruptcy Procedure 5009, the estate has been fully administered, the foregoing summary is true and complete, and all administrative matters for which the trustee is responsible have been completed.” (Id.) As of the date of this Memorandum Opinion and Order, no party has objected to the Final Report and Account. II. Analysis Based on the parties’ briefing, there are two requests pending before this court: (1) the Debtors’ request for withdrawal of the reference to the bankruptcy court; and (2) the Debtors’ request that this Court remand the adversary proceeding to state court. The Court will address each request

in turn below. A. The Court denies the Motion to Withdraw Before addressing the merits of the Motion to Withdraw, the Court finds that the Debtors have specifically requested that the Court deny the motion. In their October 23, 2025 brief, the Debtors assert that “[b]y issuing the Order of Discharge, the [Debtors] state that the appropriate thing for this Court to do is sua sponte deny [their] Motion to Withdraw the Reference and pursuant to 28 U.S.C. 4 § 1452(b) order remand of the underlying proceedings back the Cuyahoga County Court of Common Pleas.” (Doc. No.

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Elton F. Alexander, et al. v. Pacific Western Bank, et al., Counsel Stack Legal Research, https://law.counselstack.com/opinion/elton-f-alexander-et-al-v-pacific-western-bank-et-al-ohnb-2025.