Hardy v. Ross (In re Hardy)

589 B.R. 217
CourtCourt of Appeals for the D.C. Circuit
DecidedSeptember 11, 2018
DocketCivil Action Nos. 16-1968 (EGS); 16-1969 (EGS); 16-1970 (EGS); 17-1017 (EGS); 17-1316 (EGS); 18-434 (EGS)
StatusPublished
Cited by5 cases

This text of 589 B.R. 217 (Hardy v. Ross (In re Hardy)) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hardy v. Ross (In re Hardy), 589 B.R. 217 (D.C. Cir. 2018).

Opinion

Emmet G. Sullivan, United States District Judge

On May 31, 2016, Ms. LaTricia Hardy filed a pro se , voluntary bankruptcy petition in the United States Bankruptcy Court for the District of Columbia ("Bankruptcy Court"). After two years of litigation, Ms. Hardy appeals six of the Bankruptcy Court's orders. Proceeding pro se , Ms. Hardy appeals the following: (1) the order granting the Trustee's motion to "turnover" her commercial real estate property, see ECF No. 1 (Civ. No. 16-1968); (2) the order "clarifying" that the Bankruptcy Court's turnover order was not stayed, see ECF No. 1 (Civ. No. 16-1969); (3) the order denying Ms. Hardy's request to "terminat[e] [ ] conversion to Chapter 7," see ECF No. 1 (Civ. No. 16-1970); (4) the order holding Ms. Hardy in contempt and denying her motion to dismiss the Chapter 7 Trustee's claims, see ECF No. 1 (Civ. No. 17-1017); (5) the order granting All Credit Considered Mortgage, Inc.'s ("ACC") motion for summary judgment, see ECF No. 1 (Civ. No. 17-1316); and (6) the order granting the Chapter 7 Trustee's motion to approve a compromise with ACC, see ECF No. 1 (Civ. No. 18-434).1 Also pending are the Chapter 7 Trustee's two motions to dismiss: (1) motion to dismiss as equitably moot Ms. Hardy's appeal as to the turnover order, see ECF No. 18 (Civ. No. 16-1968); and (2) motion to dismiss as time-barred Ms. Hardy's appeal of the compromise order, see ECF No. 21 (Civ. No. 16-1968).

The Court has considered all of the appeals and motions, the responses and replies thereto, the voluminous record, and the applicable law, and hereby AFFIRMS the Bankruptcy Court's six orders, GRANTS the Chapter 7 Trustee's motion to dismiss as equitably moot, and DENIES the Chapter 7 Trustee's motion to dismiss as time-barred.

I. Background

On May 31, 2016, Ms. Hardy filed a voluntary petition for relief under Chapter 13 of the Bankruptcy Code. See A.R., ECF No. 29-1 at 5(Civ. No. 16-1698).2 Ms. Hardy and her mother, Patricia White, owned *218a commercial real estate property located at 1414-1416 Pennsylvania Avenue in Southeast, District of Columbia. See A.R., ECF No. 27 at 5 (Civ. No. 16-1968). After the Chapter 13 Trustee moved to dismiss the case, Ms. Hardy filed a motion to convert her case to Chapter 11. A.R., ECF No. 12-1 at 26-27 (Civ. No. 16-1968). On June 24, 2016, ACC-a creditor with a purported lien on the property-filed a motion to dismiss with prejudice or, in the alternative, to convert the case from Chapter 11 to Chapter 7. Id. at 28-45. On July 25, 2016, following a hearing, the Bankruptcy Court converted Ms. Hardy's Chapter 13 case to Chapter 7 and appointed Bryan Ross as the Chapter 7 Trustee ("the Trustee"). See Docket, ECF No. 29-1 at 10 (Civ. No. 16-1968). On August 30, 2016, Ms. Hardy filed a "motion requesting termination of conversion to Chapter 7 liquidation." A.R., ECF No. 12-1 at 152 (Civ. No. 16-1968). The Bankruptcy Court denied the motion. Id. at 159. On September 22, 2016, Ms. Hardy noticed her appeal of that order in this Court. ECF No. 1 (Civ. No. 16-1970).

On August 17, 2016, the Trustee filed a motion for an order approving the turnover of Ms. Hardy's co-owned commercial real estate property. A.R., ECF No. 12-1 at 129-134 (Civ. No. 16-1968). The Bankruptcy Court granted the turnover motion on September 9, 2016, ordering Ms. Hardy to "immediately turnover" her property and authorizing the Trustee to "take possession and control." Id. at 154-55. On September 22, 2016, Ms. Hardy noticed her appeal of that order in this Court. ECF No. 1 (Civ. No. 16-1968).

On September 19, 2016, the Bankruptcy Court also issued an order "clarifying that no stay of the Court's turnover order is in place pending disposition of the motion for a stay" that Ms. Hardy had filed. A.R., ECF No. 12-1 at 160 (Civ. No. 16-1968); see also A.R., ECF No. 29-1 at 14 (Civ. No. 16-1968). In so doing, the Bankruptcy Court emphasized that "the turnover order has not been stayed by the filing of a motion to stay" and that Ms. Hardy "remains obligated to comply with it." A.R., ECF No. 12-1 at 160 (Civ. No. 16-1968)(emphasis in original). The Bankruptcy Court subsequently denied Ms. Hardy's motion for a stay of the turnover order. See A.R., ECF No. 29-1 at 16 (Civ. No. 16-1968). On September 22, 2016, Ms. Hardy noticed an appeal in this Court of the clarifying order, but not the denial of her motion to stay. ECF No. 1, (Civ. No. 16-1969).

On November 21, 2016, Ms. Hardy filed a motion for an emergency temporary restraining order in this Court, which the Court construed as a motion to stay the Bankruptcy Court's orders denying her motion to "terminate" the conversion from Chapter 13 to Chapter 7 and granting the Trustee's turnover motion pending appeal. See TRO Mot., ECF No. 10 (Civ. No. 16-1968); Mem. Op., ECF No. 17 at 2 (Civ. No. 16-1968). The Court denied Ms. Hardy's motion on December 29, 2016. See Order, ECF No. 16 (Civ. No. 16-1968). In so doing, the Court allowed the Chapter 7 bankruptcy case to proceed.

The Trustee-having been authorized to sell the property3 -filed a motion to sell. However, Ms. Hardy purportedly refused to comply with the turnover order and vacate the premises. Therefore, on April 28, 2017, the Trustee filed a motion to show cause why Ms. Hardy should not be held in contempt. See *219A.R., ECF No. 29-1 at 115-21 (Civ. No. 16-1968). The Trustee alleged that Ms. Hardy rented the property to at least two tenants and refused to leave, in violation of the turnover order. Id. at 117-20. On May 25, 2017, after a hearing, the Bankruptcy Court granted the Trustee's motion and held Ms. Hardy in contempt. A.R., ECF No. 29-2 at 5-11 (Civ. No. 16-1968). Finding that Ms. Hardy failed to comply with its turnover order, the Bankruptcy Court directed her to produce all leases and lessees' contact information and immediately cease leasing the property. Id. at 10. It also voided any leases and authorized the Trustee or the United States Marshal to evict any tenants and occupants. Id. at 11. On May 26, 2017, Ms. Hardy noticed an appeal of that order in this Court. ECF No. 1, (Civ. No. 17-1017).

A few days later, the Bankruptcy Court approved and ratified the sale of the property over Ms. Hardy's opposition. A.R., ECF No. 29-2 at 18-26 (Civ. No. 16-1968). The Bankruptcy Court ordered the Trustee to pay the liens attached to the property, including ACC's claims. Id. at 22. It also ordered the Trustee to pay Ms. White her one-half share in the remaining property. Id. The sale was finalized on July 5, 2017, when the Trustee executed the deed. A.R., ECF No. 29-3 at 20-24 (Civ. No. 16-1968).

Meanwhile, Ms. Hardy had been litigating the validity of ACC's lien in the Superior Court for the District of Columbia. See ACC v. Hardy , 2014 CA 4580; A.R., ECF No. 12-1 at 58-65 (Civ. No. 16-1968). In September 2015, Superior Court Judge Stuart Nash entered summary judgment in ACC's favor, finding that it had a valid, enforceable claim to Ms. Hardy's property. Id. at 60.4

Similarly, on April 10, 2017, Ms. Hardy objected to the validity of ACC's lien in Bankruptcy Court. A.R., ECF No.

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Cite This Page — Counsel Stack

Bluebook (online)
589 B.R. 217, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hardy-v-ross-in-re-hardy-cadc-2018.