In re: Antonio Galindo

CourtUnited States Bankruptcy Appellate Panel for the Ninth Circuit
DecidedJuly 8, 2013
DocketSC-12-1272-BaPaJu
StatusUnpublished

This text of In re: Antonio Galindo (In re: Antonio Galindo) 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: Antonio Galindo, (bap9 2013).

Opinion

FILED JUL 08 2013 1 SUSAN M SPRAUL, CLERK U.S. BKCY. APP. PANEL 2 OF THE NINTH CIRCUIT

3 UNITED STATES BANKRUPTCY APPELLATE PANEL 4 OF THE NINTH CIRCUIT 5 In re: ) BAP No. SC-12-1272-BaPaJu ) 6 ANTONIO GALINDO, ) Bk. No. 10-12794-MM7 ) 7 Debtor. ) Adv. No. 10-90473 ______________________________) 8 ) ANTONIO GALINDO, ) 9 ) Appellant, ) 10 ) v. ) M E M O R A N D U M1 11 ) JARRED WHITED, ) 12 ) Appellee. ) 13 ______________________________) 14 Argued and Submitted on May 15, 2013 at Pasadena, California 15 Filed - July 8, 2013 16 Appeal from the United States Bankruptcy Court 17 for the Southern District of California 18 Honorable Margaret M. Mann, Bankruptcy Judge, Presiding 19 Appearances: Daniel Marshall, Esq. argued for Appellant; 20 Ellen Ezelle Turnage, Esq. of McCoy, Turnage & Robertson LLP argued for Appellee. 21 _______________________________ 22 Before: BASON,2 PAPPAS, and JURY, Bankruptcy Judges. 23 24 25 1 This disposition is not appropriate for publication. Although it may be cited for whatever persuasive value it may 26 have (see Fed. R. App. P. 32.1), it has no precedential value. See 9th Cir. BAP Rule 8013-1. 27 2 Hon. Neil W. Bason, Bankruptcy Judge for the Central 28 District of California, sitting by designation. 1 Chapter 73 debtor Antonio Galindo (“Galindo”) appeals from 2 the bankruptcy court’s judgment awarding $78,075.07 in attorney 3 fees and costs against him on a nondischargeability judgment of 4 $1,648.29. Galindo’s principal arguments are that the fees and 5 costs are excessive, disproportionate to actual damages, and 6 should not include compensation for prosecution of a state court 7 action that was commenced before this adversary proceeding. We 8 AFFIRM. 9 I. FACTS 10 In December 2009, appellee Jarred L. Whited (“Whited”), a 11 twenty-year-old Navy sailor, together with his eighteen-year-old 12 wife visited Galindo’s used car dealership, National KARS, Inc. 13 dba Southbay Preowned (“Southbay”). The Whiteds became 14 interested in a 2006 Hyundai Sonata (the “Sonata”) that they saw 15 on the lot. 16 Whited offered his wife’s Ford Focus (the “Focus”) as a 17 trade-in on the sale. At Galindo’s suggestion, the Whiteds 18 transferred the Focus to Southbay for a $1,500 credit on the 19 sale. 20 A. Galindo’s Wrongful Acts 21 Whited financed the $12,100 balance under a Retail 22 Installment Sales Contract (the “Contract”) that listed Southbay 23 as the secured creditor and seller of the Sonata. The Contract 24 stated that Southbay had ten days after the sale of the Sonata to 25 sell the Contract to a financing company or else Southbay would 26 3 Unless otherwise indicated, all chapter and section 27 references are to the Bankruptcy Code, 11 U.S.C. §§ 101-1532. All rule references are to the Federal Rules of Bankruptcy 28 Procedure, Rules 1001-9037.

- 2 - 1 carry the financing itself. 2 Galindo told Whited that Security National Automotive 3 Acceptance Corporation (“SNAAC”) had agreed to finance the sale, 4 and Galindo arranged an automatic debit to SNAAC from Whited’s 5 bank account. On December 31, 2009, SNAAC received the first 6 payment on the Contract from Whited’s bank account, although the 7 payment was not actually due until January 17, 2010. 8 In fact, SNAAC had not committed to purchase the Contract. 9 When Whited discovered that fact and other misrepresentations by 10 Galindo, he sought either to rescind the Contract or to clarify 11 that the purchase was being financed by Southbay. Whited offered 12 to set up another allotment from his military pay for Southbay’s 13 benefit for the February payment, and he asked for a payment plan 14 or invoice to reflect the status of the payments that he had 15 already made on the Contract. 16 Galindo refused these requests. Instead he insisted that 17 Whited make the January payment a second time – this time to 18 Southbay instead of SNAAC – and stated that otherwise Southbay 19 would repossess the Sonata. 20 On January 31, 2010, at Galindo’s direction, a tow company 21 repossessed the Sonata. Whited retained counsel, who wrote to 22 Galindo on February 2, 2010, asserting numerous violations of 23 California law and demanding that Galindo rescind the deal and 24 return Mrs. Whited’s Focus. Instead, Southbay foreclosed on the 25 Sonata (and sold it to another customer on March 19, 2010 for 26 slightly more than the sale price to Whited). At the end of May, 27 2010, Southbay sold the Focus to a related dealership owned by 28

- 3 - 1 Galindo (which resold it for $5,495).4 Southbay then closed its 2 business. 3 B. Whited’s Actions Against Galindo 4 Whited sued Galindo and Southbay in state court. Galindo 5 did not respond but, before Whited could obtain a default 6 judgment, Galindo filed a voluntary petition under Chapter 7 of 7 the Bankruptcy Code on July 21, 2010 (the “Petition Date”). 8 On September 28, 2010, Whited timely filed his 9 nondischargeability complaint in the bankruptcy case. On 10 January 3, 2012, the bankruptcy court conducted a trial regarding 11 Whited’s claims under Sections 523(a)(2)(A) and 523(a)(6).5 12 After a trial the bankruptcy court issued a memorandum 13 decision finding that Galindo made false statements to Whited 14 with regard to the condition of the vehicle and financing, and 15 concluding that Galindo was liable to Whited for statutory and 16 common law fraud and conversion, including under the California 17 Consumers Legal Remedies Act (the “Consumer Remedies Act”). Cal. 18 Civ. Code § 1770 et seq. The bankruptcy court ruled that the 19 debt was nondischargeable under Section 523(a)(2)(A), and that 20 because Galindo’s acts were willful and malicious, the debt was 21 also nondischargeable under Section 523(a)(6). 22 C. Attorney fees and costs 23 The bankruptcy court ruled that Galindo was liable for 24 25 4 The bankruptcy court did not evaluate any claims relating to the trade-in of the Focus because that was Mrs. Whited’s 26 separate property and she was not designated as a co-plaintiff. 27 5 The Complaint also asserted a claim for denial of discharge under Section 727(a)(2). But Whited abandoned that 28 claim before trial.

- 4 - 1 Whited’s legal expenses under California Civil Code § 1780(e). 2 In post-trial proceedings the parties filed briefs addressing the 3 dollar amount of fees and costs to be awarded. 4 Whited sought $91,600.00 in attorney fees and $2,785.07 in 5 costs. The bankruptcy court issued a tentative ruling (the 6 “Tentative Ruling”) allowing $75,440.00 in fees and $2,635.07 in 7 costs. After hearing oral argument the bankruptcy court adopted 8 the Tentative Ruling and included the fees and costs in its 9 judgment. Galindo timely filed a notice of appeal. He does not 10 challenge the underlying nondischarcheability judgment of 11 $1,648.29, but he does challenge the award of legal fees and 12 costs. 13 II. ISSUE 14 Whether the bankruptcy court abused its discretion in its 15 award of attorney fees and costs to Whited.6 16 III. JURISDICTION AND AUTHORITY 17 We have jurisdiction under 28 U.S.C. § 158. The bankruptcy 18 court had both the jurisdiction and authority to hear Whited’s 19 claims, including any award of attorney fees. Deitz v. Ford 20 (In re Deitz), 469 B.R. 11 (9th Cir. BAP 2012) (interpreting 21 Stern v. Marshall, 131 S.Ct. 2594 (2011)). See also 28 U.S.C. 22 §§ 157(b)(2)(I) & 1334(b). 23 IV. STANDARD OF REVIEW 24 We review the bankruptcy court’s award of attorney fees for 25 an abuse of discretion. Feder v.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Alyeska Pipeline Service Co. v. Wilderness Society
421 U.S. 240 (Supreme Court, 1975)
United States v. Santiago
83 F.3d 20 (First Circuit, 1996)
Stern v. Marshall
131 S. Ct. 2594 (Supreme Court, 2011)
Serrano v. Unruh
652 P.2d 985 (California Supreme Court, 1982)
United States v. Hinkson
585 F.3d 1247 (Ninth Circuit, 2009)
Deitz v. Ford (In Re Deitz)
469 B.R. 11 (Ninth Circuit, 2012)
Hayward v. Ventura Volvo
133 Cal. Rptr. 2d 514 (California Court of Appeal, 2003)
Abouab v. City and County of San Francisco
46 Cal. Rptr. 3d 206 (California Court of Appeal, 2006)
Castro v. Superior Court
10 Cal. Rptr. 3d 865 (California Court of Appeal, 2004)
Graciano v. Robinson Ford Sales, Inc.
50 Cal. Rptr. 3d 273 (California Court of Appeal, 2006)
Ciani v. San Diego Trust & Savings Bank
25 Cal. App. 4th 563 (California Court of Appeal, 1994)
Choate v. County of Orange
103 Cal. Rptr. 2d 339 (California Court of Appeal, 2001)
Graham v. DaimlerChrysler Corp.
101 P.3d 140 (California Supreme Court, 2005)
Chavez v. City of Los Angeles
224 P.3d 41 (California Supreme Court, 2010)
Morrison v. Vineyard Creek L.P.
193 Cal. App. 4th 1254 (California Court of Appeal, 2011)
Ford v. Baroff (In re Baroff)
105 F.3d 439 (Ninth Circuit, 1997)

Cite This Page — Counsel Stack

Bluebook (online)
In re: Antonio Galindo, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-antonio-galindo-bap9-2013.