In re: Ashkan Rajaee and Nassim Rajaee v. Christopher R. Barclay

CourtDistrict Court, S.D. California
DecidedOctober 31, 2025
Docket3:25-cv-00667
StatusUnknown

This text of In re: Ashkan Rajaee and Nassim Rajaee v. Christopher R. Barclay (In re: Ashkan Rajaee and Nassim Rajaee v. Christopher R. Barclay) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re: Ashkan Rajaee and Nassim Rajaee v. Christopher R. Barclay, (S.D. Cal. 2025).

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 SOUTHERN DISTRICT OF CALIFORNIA 10 11 In re: Case No.: 25-cv-667-RSH-KSC

12 ASHKAN RAJAEE and NASSIM (Appeal from S.D. Cal. Bankr. 13 RAJAEE, Case No. 3:24-bk-00617-CL) Debtors. 14 _________________________________ ORDER AFFIRMING RULING OF 15 U.S. BANKRUPTCY COURT AND ASHKAN RAJAEE, ADDRESSING PENDING MOTIONS 16

Appellant, 17 v. [ECF Nos. 6, 8, 22] 18 CHRISTOPHER R. BARCLAY, 19 Chapter 7 Trustee, TYLER DAVIS, and 20 TOPDEVZ, LLC, 21 Appellees. 22 23 Appellant Ashkan Rajaee (“Appellant” or “Rajaee”) appeals pro se from a March 6, 24 2025 order (the “Reconsideration Order”) of the U.S. Bankruptcy Court for the Southern 25 District of California (the “Bankruptcy Court”) denying a motion for reconsideration made 26 by Appellant and his co-debtor spouse Nassim Rajaee. ECF No. 1. The underlying case is 27 1 In re Ashkan Rajaee & Nassim Rajaee, No. 3:24-bk-00617-CL (S.D. Cal. Bankr.) (the 2 “Bankruptcy Case”). 3 Also pending are Rajaee’s motion to disqualify counsel for appellees Tyler Davis 4 and TopDevz, LLC (“TopDevz”) [ECF No. 6], and Davis’s motion for a protective order 5 [ECF No. 8]. 6 As set forth below, the Court: (1) affirms the Bankruptcy Court’s Reconsideration 7 Order, (2) denies Rajaee’s motion to disqualify, and (3) grants Davis’s motion for a 8 protective order. 9 I. BACKGROUND 10 A. The Bankruptcy Case 11 The Bankruptcy Case arises from a dispute between Rajaee and his former business 12 partner, Davis, who were the owners of TopDevz. On February 23, 2021, Rajee initiated 13 arbitration proceedings against Davis. SER 4.1 On May 12, 2023, the arbitrator issued a 14 68-page ruling (the “Final Award”) in favor of Davis and against Rajee. ER 147-220. On 15 June 6, 2023, Davis filed a petition to confirm the award in San Diego Superior Court. SER 16 156. On July 20, 2023, the court issued a seven-page decision granting Davis’s petition to 17 confirm. SER 334-40. The Superior Court entered judgment on August 15, 2023 18 confirming the Final Award. SER 5. 19 Following the arbitration award against him, Rajaee brought several lawsuits 20 relating to the dispute, including three in this Court. See SER 6-10; Case Nos. 24-cv-1, 24- 21 cv-549, 24-cv-550. 22 On February 26, 2024, Rajaee and his wife (“Debtors”) filed for bankruptcy under 23 chapter 11. ER 284-90. 24 25 26 1 “ER” refers to Excerpts of Record, at ECF No. 18-1 to 18-7. “SER” refers to 27 1 On April 8, 2024, Davis and TopDevz filed a motion to appoint a chapter 11 trustee 2 or to convert the Debtors’ case to chapter 7. ER 555-991. Debtors opposed. ER 1027-42. 3 On May 9, 2024, the Bankruptcy Court entered a 13-page order converting the case to 4 chapter 7 (the “Conversion Order”), ER 1630-42, and thereafter appointed Christopher R. 5 Barclay as trustee (the “Trustee”). The deadline to appeal the Conversion Order was May 6 23, 2024. See Fed. R. Bankr. P. 8004. Debtors did not appeal or seek to stay the order. 7 Thereafter, the Trustee worked to administer the chapter 7 bankruptcy estate, 8 appearing as the real party in interest in approximately 10 litigation matters pursuant to 9 Federal Rule of Bankruptcy Procedure 6009. ER 4430. The Trustee ultimately entered into 10 several settlement agreements, including one with Davis and TopDevz. ER 3152-3230. 11 On October 23, 2024, the Trustee filed a motion to approve the settlements. Id. 12 Debtors opposed. ER 3235-4330. On December 10, 2024, the Bankruptcy Court entered a 13 nine-page order approving the settlements (the “Settlement Order”). ER 4386-95. After the 14 settlements were approved, the Trustee received the settlement proceeds and requested 15 dismissal of the lawsuits. ER 4430-31. This included two of the three lawsuits filed by 16 Rajaee in this Court, which were subsequently dismissed with prejudice; the other, first- 17 filed lawsuit had previously been dismissed by the Court under the Rooker-Feldman 18 doctrine as an improper de facto appeal of his loss in Superior Court. See Case No. 24-cv- 19 1-RSH-KSC, Dkt. No. 138 (order of dismissal dated Apr. 11, 2024). 20 On December 24, 2024, Debtors moved to reconsider the Conversion Order and the 21 Settlement Order under Rule 60(b)(1). ER 3-276. Debtors argued that the Bankruptcy 22 Court’s decision to convert the case to chapter 7 was legally erroneous, and that the 23 Bankruptcy Court improperly gave preclusive effect to the Final Award without giving the 24 parties an opportunity to brief the issue. ER 7. Debtors further argued that there was 25 insufficient evidence to support the Bankruptcy Court’s conclusion in the Conversion 26 Order that Rajaee had engaged in “bad faith litigation tactics,” and that Debtors’ failure to 27 schedule certain assets was explainable. ER 28-30. Debtors argued that the Settlement 1 Order “should be set aside for the same reasons,” ER 8, and that that order “compounded” 2 the deprivation of Rajaee’s rights, ER 31. The Trustee, as well as Davis and TopDevz, 3 opposed the motion to reconsider. ER 4406-39, 4441-52. 4 B. The Bankruptcy Court’s Reconsideration Order 5 On March 6, 2025, the Bankruptcy Court entered its order denying the motion for 6 reconsideration (the “Reconsideration Order”). ER 278-82. The Bankruptcy Court first 7 determined that the motion to reconsider the Conversion Order was untimely: 8 “Rule 60(c) imposes deadlines on Rule 60(b) motions. All must be filed ‘within a reasonable time.’ Rule 60(c)(1). But for some, including 9 motions under Rule 60(b)(1), that ‘reasonable time’ may not exceed 10 one year. Rule 60(c)(1).” Kemp v. United States, 596 U.S. 528, 533, (2022). 11

12 Debtors move under Rule 60(b)(1) to reconsider the court’s conversion order (ECF No. 176). Their main contentions are that there was no 13 evidence to indicate bad faith, and that the court applied collateral 14 estoppel to the arbitrator’s findings. Id. They filed their motion 215 days – 7 months – after the conversion order’s appeal period. Id. They 15 are hard pressed to show this was done within a reasonable time. 16 There was seven-month delay. When considering applicable factors, 17 that is unreasonable. Courts review “the interest in finality, the reason 18 for delay, the practical ability of the litigant to learn earlier of the grounds relied upon, and prejudice to other parties” in determining a 19 filing’s reasonableness. Ashford v. Steuart, 657 F.2d 1053, 1055 (9th 20 Cir. 1981). Among other actions, the Chapter 7 Trustee administered the estate by settling at least four lawsuits, dismissing an adversary 21 proceeding, and selling Debtors’ home (ECF Nos. 136, 159 & 180). 22 The interest in finality and the prejudice to other parties are paramount given these actions. Debtors offer no reason for their delay. And they 23 had the practical ability to discover the grounds relied upon simply by 24 reading Creditor Davis/TopDevzs’ papers and the court’s conversion order. All factors point toward unreasonableness. 25

26 Moreover, courts considering a similar time delay or even shorter have found lack of reasonableness. See Plotkin v. Pac. Tel. & Tel. Co., 688 27 1 F.2d 1291, 1293 (9th Cir. 1982) (finding motion under Rule 60 not reasonable 48 days after order and 18 days after expiration of appeal 2 from order); Jackson v. McDowell, No. LACV1603422VBFGJSX, 3 2019 WL 6354377, at *2 (C.D. Cal. Sept. 25, 2019) (finding lack of reasonable time where movant “waited over ten months after the 4 issuance of judgment before moving under 60(b)”).

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In re: Ashkan Rajaee and Nassim Rajaee v. Christopher R. Barclay, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-ashkan-rajaee-and-nassim-rajaee-v-christopher-r-barclay-casd-2025.