In Re Alan Bernard Linda Bernard, Debtors. Alan Bernard Linda Bernard v. Jeffrey C. Coyne, Chapter 7 Trustee Clement Sheaffer Mary Sheaffer

31 F.3d 842, 94 Cal. Daily Op. Serv. 5838, 94 Daily Journal DAR 10651, 1994 U.S. App. LEXIS 19673, 1994 WL 390733
CourtCourt of Appeals for the Ninth Circuit
DecidedJuly 29, 1994
Docket93-55255
StatusPublished
Cited by61 cases

This text of 31 F.3d 842 (In Re Alan Bernard Linda Bernard, Debtors. Alan Bernard Linda Bernard v. Jeffrey C. Coyne, Chapter 7 Trustee Clement Sheaffer Mary Sheaffer) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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In Re Alan Bernard Linda Bernard, Debtors. Alan Bernard Linda Bernard v. Jeffrey C. Coyne, Chapter 7 Trustee Clement Sheaffer Mary Sheaffer, 31 F.3d 842, 94 Cal. Daily Op. Serv. 5838, 94 Daily Journal DAR 10651, 1994 U.S. App. LEXIS 19673, 1994 WL 390733 (9th Cir. 1994).

Opinion

ORDER

KOZINSKI, Circuit Judge.

The parties to this appeal are the Ber-nards, debtors in a Chapter 7 bankruptcy proceeding pending in the Central District of California; creditors Clement and Mary Sheaffer; and Jeffrey C. Coyne, the Chapter 7 trustee. The central question presented in the case (which will not be answered here) is whether the trustee’s objection to certain exemptions claimed by the debtors was timely-

*843 Shortly after oral argument on June 8, 1994, the Bernards filed a motion asking that I disqualify myself under 28 U.S.C. § 455, 1 based on the fact that I am married to Marcy J.K. Tiffany, who is the United States Trustee for the Central District of California. 2

1. Who Rules on the Motion?

The initial decision whether or not to sit in a case rests with the individual judge. Under the canons of judicial ethics, every judicial officer must satisfy himself that he is actually unbiased toward the parties in each ease and that his impartiality is not reasonably subject to question. To assist judges in carrying out this bias-check the parties are required to list those entities that have an interest in the case. See Fed.R.App.P. 26.1 & advisory committee’s note. For the same reason, judges must file yearly financial disclosure reports, listing the entities in which they have an interest. 5 U.S.C. app. §§ 101-102. The court also has various internal mechanisms — invisible to the litigants — to reduce the risk of conflict. For example, a judge may give the clerk of court a list of parties in whose causes he may not sit; the assignment of cases is then monitored to ensure that the judge is not assigned to cases involving those parties. If a judge notices a conflict in a case already assigned to him, he usually removes himself long before the parties learn of the assignment.

Despite these precautions, parties oc-easionally come to believe that a judge who has not disqualified himself should do so. They are entitled to file a motion for disqualification, as the Bernards have done here. Such a motion is filed in the case docket and referred to the full panel. However, the somewhat surprising (and not entirely comfortable) reality is that the motion is addressed to, and must be decided by, the very judge whose impartiality is being questioned. See, e.g., United States v. Sibla, 624 F.2d 864, 868 (9th Cir.1980); United States v. Balistrieri, 779 F.2d 1191, 1202-03 (7th Cir.1985) (“Section 455 clearly contemplates that decisions with respect to disqualification should be made by the judge sitting in the case, and not by another judge.”). Neither section 455, nor the Federal Rules of Appellate Procedure, nor our local rules contain a mechanism for referring disqualification motions to someone else. 3 See Schurz Communications, Inc. v. FCC, 982 F.2d 1057 (7th Cir.1992) (Posner, J.) (other judges on panel decline to consider petition to disqualify third judge). Like it or not, therefore, the responsibility for ruling on the Bernards’ motion devolves on me alone.

2. Do I Disqualify Myself?

The Bernards contend that my impartiality is subject to question because my wife has a stake in the outcome of the proceedings. In support of this claim they argue that my wife *844 is Mr. Coyne’s supervisor and therefore has an interest in the outcome of the case. They also point out that, by statute, the U.S. Trustee may herself participate as a party in every bankruptcy case; this potential participation, the Bernards argue, is enough of an interest to require my recusal.

Section 455 requires not only that a judge be subjectively confident of his ability to be evenhanded, but also that an informed, rational, objective observer would not doubt his impartiality. United States v. Winston, 613 F.2d 221, 222 (9th Cir.1980). After careful examination of the circumstances of this case, I have determined that my wife’s position as U.S. Trustee does not affect my impartiality, as I do not feel any bias for or against any of the parties here.

The question of appearances is more difficult; human nature being what it is, we would all like to believe that no objective observer would ever doubt our impartiality. See SCA Servs., Inc. v. Morgan, 557 F.2d 110, 116 (7th Cir.1977) (“Because a judge must apply the standard [of section 455] both as its interpreter and its object, the general standard is even more difficult to define. [There is a] philosophical dilemma created by this objective-subjective conundrum_”). Fortunately, there is a source of objective advice for federal judges confronting sensitive disqualification questions. The Judicial Conference of the United States has established a committee, consisting of federal judges, “[t]o provide advice on the application of the Code of Conduct for United States Judges.” Jurisdictional Statement of the Committee on Codes of Conduct of the Judicial Conference of the United States. Although judges are neither required to consult the committee nor bound by its rulings, the committee provides invaluable guidance and a detached viewpoint.

Mindful of the possibility that an objective observer might question my participation in this appeal, I wrote to the Committee on Codes of Conduct on April 28, 1994. I advised the committee of the role played by the United States Trustee in bankruptcy cases, and particularly in those brought under Chapter 7 of the Code. I noted that the U.S. Trustee and her staff are routinely involved in the administration of all Chapter 7 cases. The U.S. Trustee screens a panel of potential Chapter 7 trustees, 28 U.S.C. § 586(a)(1), and is responsible for the assignment of panel members to individual cases, although the trustee is formally appointed by the bankruptcy court. The U.S. Trustee sets guidelines for Chapter 7 trustees, but she has no control over the legal positions taken in a case by an individual trustee. Once appointed, a Chapter 7 trustee can be removed from a case only by order of the bankruptcy court. 11 U.S.C. § 324. The U.S. Trustee can, however, remove or suspend trustees from the panel for performance or other reasons.

I also noted that, from time to time, the U.S.

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31 F.3d 842, 94 Cal. Daily Op. Serv. 5838, 94 Daily Journal DAR 10651, 1994 U.S. App. LEXIS 19673, 1994 WL 390733, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-alan-bernard-linda-bernard-debtors-alan-bernard-linda-bernard-v-ca9-1994.