In re Chandler's Cove Inn, Ltd.

97 B.R. 752, 1988 Bankr. LEXIS 2717, 1988 WL 151637
CourtDistrict Court, E.D. New York
DecidedApril 8, 1988
DocketBankruptcy Nos. 187-71385-352, 187-71386-352
StatusPublished
Cited by2 cases

This text of 97 B.R. 752 (In re Chandler's Cove Inn, Ltd.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Chandler's Cove Inn, Ltd., 97 B.R. 752, 1988 Bankr. LEXIS 2717, 1988 WL 151637 (E.D.N.Y. 1988).

Opinion

OPINION

MARVIN A. HOLLAND, Bankruptcy Judge:

Presently before the court are identical motions made in each of the above-captioned cases requesting recusal of the undersigned pursuant to 28 U.S.C. § 455.

This court finds the motions legally insufficient and factually without merit. Re-cusal is unwarranted since no reasonable person, “were he to know all the circumstances, would harbor doubt about the judge’s impartiality”, Potashnick v. Port City Const. Co., 609 F.2d 1101, 1110 (5th Cir.1980); Note, Disqualification of Judges and Justices in the Federal Courts, 86 Harv.L.Rev. 736, 745 (1973) and “the proverbial average person on the street with knowledge of all the facts and circumstances alleged in the motion to re-cuse”, In re Martin Trigona, 573 F.Supp. 1237 (D.C.Conn.1983), would not question this court’s impartiality.

STATEMENT OF FACTS

Cedar Tide filed its voluntary Chapter 11 petition on December 10, 1985 and in accordance with Local Rule 7 the case was assigned to the Honorable Cecelia H. Goetz.

In April of 1986 Judge Goetz authorized the debtor’s retention of Pinks, Brooks, Stern & Arbeit (hereinafter “Pinks”) as debtors’ bankruptcy counsel after having granted the withdrawal application of Mr. Harold Spivack.

In June of 1986 Pinks commenced adversary proceeding 086-0037 against Chandler’s Cove seeking to set aside a deed transferring a parcel of property from Cedar Tide to Chandler’s Cove. On October 16,1986 Judge Goetz held the transfer void as having been executed post-petition without proper court approval.

On September 26, 1986, Chandler’s Cove Inn, Ltd. filed a petition in bankruptcy under Chapter 7 of Title 11 in the Southern District of New York. Mr. Isaac Nutovic, Esq. was appointed interim trustee by the court. In November of 1986 Pinks moved the Bankruptcy Court for the Southern District of New York (Buschman, J.), pursuant to Bankruptcy Rule 1014, to transfer venue of the case and all of its proceedings to the Eastern District of New York, asserting improper venue under 28 U.S.C. § 1408 1. The court (Buschman, J.), on December 3, 1986, pursuant to Bankruptcy Rule 1014(a)(2), summarily granted the motion since it was undisputed that the principal asset subject to that proceeding was located in the Eastern District of New York. On Chandler’s Cove subsequent motion to reargue, which was granted and heard on December 29, 1986, Judge Busch-man adhered to his original decision holding that “where a ease is in liquidation, venue should, in the interest of justice, be placed where the principal assets are if they are located in the district different from the debtor’s principal place of business” (citing to In re Commonwealth Oil Ref. Co., 596 F.2d 1239, 1248 (5th Cir.1979), cert. denied 444 U.S. 1045, 100 S.Ct. 732, 62 L.Ed.2d 731 (1980) (unpublished decision dated December 29, 1986)).

Pursuant to Local Rule 7, the Chandler’s Cove bankruptcy case was assigned to Judge Goetz. On January 6, 1987, Isaac Nutovic, a Southern District panel trustee, was replaced as trustee by Robert Pryor, Esq., an Eastern District panel trustee. [754]*754Mr. Pryor was then authorized to retain himself as attorney for the trustee.

On or about April 30, 1987, a motion was brought by Chandler’s Cove seeking Judge Goetz’s disqualification. Judge Goetz, on May 14, 1987, held that based upon the totality of the circumstances recusal was neither warranted nor necessary. Chandler’s Cove appealed.

By further motion made on or about June 15, 1987, Chandler’s Cove sought an order (1) granting the debtor leave to renew its prior motion for recusal; and (2) disqualifying Judge Goetz from hearing all core and non-core proceedings related to the administration of this case. Judge Goetz reserved on that motion.

While decisions on both the appeal and the new motion were pending, Judge Goetz learned that her law clerk had attended an adjourned Section 341 meeting in the Chandler’s Cove case. Section 341(c) prohibits the court from presiding over or attending any such meeting, but contains no similar prohibition with regard to support personnel. Nevertheless, in order to avoid the possibility that the raising of this issue might delay the cases and in order to avoid not so much the appearance of impropriety but rather the possibility of a specious accusation of impropriety, Judge Goetz, on June 25, 1987, recused herself sua sponte. Chief Bankruptcy Judge Duberstein thereafter reassigned the cases to the undersigned.

Almost immediately thereafter, Chandler’s Cove applied for an order to show cause to obtain recusal of the undersigned alleging an appearance of impropriety. After the order to show cause was denied for failure to comply with Local Bankruptcy Rule 22(d)2, a motion was made pursuant to 28 U.S.C. § 455 seeking recusal of the undersigned with regard to both of the above-captioned cases and all proceedings thereunder and seeking reassignment of these cases by the Chief Judge of the District Court.

The motion is a collection of unorganized allegations containing factual misrepresentations, misleading innuendos, and conclusions unsubstantiated with regard either to fact or law. The moving papers makes no effort to comply with Bankruptcy Rule 9013 which requires that a “motion shall state with particularity the grounds therefore ...” and for this reason alone the motion should be denied. However, in order to put the matter to rest, at least in this court, the merits of the motion will be addressed.

It is difficult to determine from the moving papers the precise grounds upon which the movant relies. It appears, however, that the main thrust of its motion can be organized into the following points:

1) based upon the “totality of the circumstances” in the Cedar Tide/Chandler’s Cove cases as being “more than merely suggestive that a substantial appearance of impropriety exists.” Notice of Motion for Recu-sal, at 21;

2) a substantial appearance of impropriety exists regarding an ex parte application submitted to this court by movant requesting permission to employ Mr. Douglas Dur-nin, Esq. to argue an appeal on behalf of Chandler’s Cove before the Honorable Judge Weinstein, Chief Judge of the District Court for the Eastern District of New York. The movant alleges that “although the order was submitted ... some two weeks prior to the scheduled date of the appeal, Hon. Judge Holland took no action until the issue was moot....” Id.;

3) recusal is warranted because the involvement of the law firm of Holland & Zinker in a bankruptcy case entitled: Wilma Frank, individually and d/b/a Current Electric Co. and William C. Frank, Sr., a/k/a William Frank demonstrates a “close working relationship between Pinks, Pryor and the law firm of Holland & Zinker.” Id. The claim is made that the undersigned was a partner in the law firm of Holland & Zinker which represented the Franks. Robert Pryor served as its Chap[755]*755ter 7 trustee.

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Cite This Page — Counsel Stack

Bluebook (online)
97 B.R. 752, 1988 Bankr. LEXIS 2717, 1988 WL 151637, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-chandlers-cove-inn-ltd-nyed-1988.