In re: Alexander Von Neitsch AND Elena Von Neitsch

CourtUnited States Bankruptcy Appellate Panel for the Ninth Circuit
DecidedJanuary 28, 2026
Docket25-1109
StatusUnpublished

This text of In re: Alexander Von Neitsch AND Elena Von Neitsch (In re: Alexander Von Neitsch AND Elena Von Neitsch) is published on Counsel Stack Legal Research, covering United States Bankruptcy Appellate Panel for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re: Alexander Von Neitsch AND Elena Von Neitsch, (bap9 2026).

Opinion

FILED JAN 28 2026 NOT FOR PUBLICATION SUSAN M. SPRAUL, CLERK U.S. BKCY. APP. PANEL OF THE NINTH CIRCUIT

UNITED STATES BANKRUPTCY APPELLATE PANEL OF THE NINTH CIRCUIT

In re: BAP No. CC-25-1109-CNS ALEXANDER VON NEITSCH and ELENA VON NEITSCH, Bk. No. 2:25-bk-11999-DS Debtors. ALEXANDER VON NEITSCH; ELENA VON NEITSCH, Appellants, v. MEMORANDUM* DANIEL E. NAYSAN, D.D.S.; M. NAYSAN, D.D.S., INC. dba Bedford Dental Group, Appellees.

Appeal from the United States Bankruptcy Court for the Central District of California Deborah J. Saltzman, Bankruptcy Judge, Presiding

Before: CORBIT, NIEMANN, and SPRAKER, Bankruptcy Judges.

Memorandum by Judge Corbit Concurrence by Judge Spraker

* This disposition is not appropriate for publication. Although it may be cited for whatever persuasive value it may have, see Fed. R. App. P. 32.1, it has no precedential value, see 9th Cir. BAP Rule 8024-1. INTRODUCTION

Elena Von Neitsch (“Ms. Von Neitsch”), one of the chapter 7 1 debtors,

filed a prepetition lawsuit in state court against Daniel E. Naysan, D.D.S.

and M. Naysan D.D.S., Inc. dba Bedford Dental Group (the “Dental

Group”), the appellees in this appeal. After Ms. Von Neitsch filed for

bankruptcy but before the entry of an order granting relief from the

automatic stay, the Dental Group filed a motion in the state court to

dismiss Ms. Von Neitsch’s state court lawsuit. That motion remains

pending. The debtors appeal the bankruptcy court’s order granting the

Dental Group’s motion for retroactive annulment of the automatic stay to

prosecute their defenses in the state court.

Much of what the debtors want to accomplish by this appeal is moot

because: (1) no order was entered in the state court while the stay was in

effect; and (2) while this appeal was pending, the debtors received their

discharge, which terminated the automatic stay by operation of

§ 362(c)(2)(C). Consequently, even if this Panel reversed the bankruptcy

court’s relief from stay order, there are no orders that would be voided

because none existed, and there is no longer a need for prospective relief

from the automatic stay. However, because retroactive relief from stay

1 Unless specified otherwise, all chapter and section references are to the Bankruptcy Code, 11 U.S.C. §§ 101-1532, all “Rule” references are to the Federal Rules of Bankruptcy Procedure, and all “Civil Rule” references are to the Federal Rules of Civil Procedure.

2 sanctioned the filing of the Dental Group’s motion to dismiss in the state

court, we review that aspect of the matter on the merits.

After reviewing the matter on the merits, we determine that the

bankruptcy court did not abuse its discretion in granting the Dental Group

retroactive relief from the automatic stay. We therefore AFFIRM.

FACTS 2

In 2022, Ms. Von Neitsch filed a civil suit in a Los Angeles, California

superior court against the Dental Group (“state court action”). Ms. Von

Neitsch alleged she sustained injuries following a dental procedure by the

Dental Group. Ms. Von Neitsch sought over $3.3 million in damages. Trial

was set for May 27, 2025.

Because Ms. Von Neitsch was not a resident of California at the time

she filed the state court action, the Dental Group requested, pursuant to

Cal. Code Civ. Proc. § 1030, that the state court require Ms. Von Neitsch file

an “undertaking” to secure a possible award of costs and attorney’s fees.3

2 We exercise our discretion to take judicial notice of documents electronically filed in the adversary proceeding, main bankruptcy case, and related proceedings. See Atwood v. Chase Manhattan Mortg. Co. (In re Atwood), 293 B.R. 227, 233 n.9 (9th Cir. BAP 2003); Bias v. Moynihan, 508 F.3d 1212, 1225 (9th Cir. 2007) (Courts “may take notice of proceedings in other courts, both within and without the federal judicial system, if those proceedings have a direct relation to matters at issue.”) (citation omitted). 3 Cal. Code Civ. Proc. § 1030 states, in relevant part:

(a) When the plaintiff in an action or special proceeding resides out of the state, or is a foreign corporation, the defendant may at any time apply to the court by noticed motion for an order requiring the plaintiff to file an undertaking to secure an award of costs and attorney’s fees which may be awarded in the action or special proceeding. For the purposes of this section, “attorney’s fees” means reasonable attorney’s fees a party 3 On February 13, 2025, after notice and a hearing, the state court granted the

Dental Group’s request and ordered Ms. Von Neitsch to file an

undertaking in the amount of $50,717.36 within 30 days (before March 15,

2025) to maintain the state court action. However, Ms. Von Neitsch did not

file the undertaking. Instead, on March 12, 2025, Ms. Von Neitsch and her

husband Alexander Von Neitsch jointly filed a chapter 7 bankruptcy case.

On April 2, 2025, the Dental Group moved to dismiss the state court

action based on Ms. Von Neitsch’s failure to file the undertaking. That

motion has not been decided. 4

On May 14, 2025, the Dental Group filed a motion for retroactive

relief from the automatic stay to continue litigation/dismissal of the state

court action. The Dental Group explained that they believed the automatic

may be authorized to recover by a statute apart from this section or by contract. (b) The motion shall be made on the grounds that the plaintiff resides out of the state or is a foreign corporation and that there is a reasonable possibility that the moving defendant will obtain judgment in the action or special proceeding. The motion shall be accompanied by an affidavit in support of the grounds for the motion and by a memorandum of points and authorities. The affidavit shall set forth the nature and amount of the costs and attorney’s fees the defendant has incurred and expects to incur by the conclusion of the action or special proceeding. (c) If the court, after hearing, determines that the grounds for the motion have been established, the court shall order that the plaintiff file the undertaking in an amount specified in the court’s order as security for costs and attorney’s fees. (d) The plaintiff shall file the undertaking not later than 30 days after service of the court's order requiring it or within a greater time allowed by the court. If the plaintiff fails to file the undertaking within the time allowed, the plaintiff’s action or special proceeding shall be dismissed as to the defendant in whose favor the order requiring the undertaking was made. 4 During oral argument Ms. Von Neitsch admitted that the state court action has

not been dismissed, and the dismissal motion remains pending. 4 stay was not applicable, but they were simply being cautious and wanted

assurance that their actions in state court did not violate the automatic stay.

The Dental Group argued that the automatic stay was not applicable

because “§ 362(a)(1) stays the commencement or continuation of a judicial

proceeding against the debtor,” so the stay does not necessarily stay

judicial proceedings filed by the debtor. The Dental Group further argued

that Ms.

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In re: Alexander Von Neitsch AND Elena Von Neitsch, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-alexander-von-neitsch-and-elena-von-neitsch-bap9-2026.