In re: Charles A. Hamm, II

United States Bankruptcy Appellate Panel for the Ninth Circuit·Decided September 29, 2020·No. CC-20-1049-LSF·Unpublished

Opinion

FILED

SEP 29 2020

NOT FOR PUBLICATION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-20-1049-LSF CHARLES A. HAMM, II, Debtor. Bk. No. 9:18-bk-10785-DS CHARLES A. HAMM, II, Appellant, Adv. No. 9:18-ap-01045-DS v. SHANNA BURCAR; JOHN C. BARLOW; MEMORANDUM* NANCY BARLOW, Appellees.

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

Before: LAFFERTY, SPRAKER, and FARIS, Bankruptcy Judges.

INTRODUCTION

Chapter 71 debtor Charles Hamm appeals the bankruptcy court’s

*

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.

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

order granting summary judgment and judgment in favor of appellees. The bankruptcy court denied Debtor’s discharge under § 727(a)(4)(A) based on his failure to schedule a real estate referral commission arising from a pre- petition contract; it also declared nondischargeable under § 523(a)(6) an anti-SLAPP judgment entered in favor of appellees and against Debtor shortly before the petition date.

We AFFIRM summary judgment on the § 727(a)(4)(A) claim and VACATE and REMAND summary judgment on the § 523(a)(6) claim.

FACTUAL BACKGROUND

Prepetition Events Debtor is a licensed real estate broker. He is also an attorney, having obtained a law degree and passed the California bar exam, but he is not licensed to practice. Debtor and appellee Shanna Burcar were divorced in 2009.

Debtor thereafter filed at least 50 requests for relief in family court relating to custody and child support issues, and seven unsuccessful appeals. Among other things, he alleged that Ms. Burcar was hiding income. Additionally, between November 2016 and February 2017, Debtor filed three lawsuits in federal court alleging civil rights violations arising out of his arrest for nonpayment of child support, naming as defendants Ventura County Department of Child Support Services ("DCS"), California DCS Services, Ventura County Superior Court, two DCS Support Services

attorneys, the then-governor of California, and two family court judges that had ruled against Debtor in the family court case. All of those lawsuits were dismissed; dismissal was affirmed on appeal to the Ninth Circuit Court of Appeals.

In October 2017, Debtor filed a complaint in Ventura County Superior Court against Ms. Burcar and her parents, John and Nancy Barlow (collectively, “Appellees”). The complaint asserted 45 causes of action, consisting of multiple claims for fraud, conspiracy, abuse of process, and intentional infliction of emotional distress based on the filing and serving of responses to motions Debtor filed in family court.

In response, Appellees filed a special motion to strike under California’s anti-SLAPP statute, California Code of Civil Procedure § 425.16. The superior court granted the motion and, on May 10, 2018, entered a judgment awarding Appellees attorney’s fees and costs of $22,565. The court found that all of Debtor’s claims arose from communications in the course of litigation, which are subject to an absolute litigation privilege under California Civil Code § 47(b) and constitute protected activity under the anti-SLAPP statute. Shortly after entry of the anti-SLAPP judgment, Appellees served a notice of levy and writ of execution on an escrow from which Debtor was to be paid a real estate commission of approximately $5,000.

In the meantime, Debtor was involved in helping his clients, Michael

and Jen Easter, purchase real property in a new development on San Leandro Street in Ventura, California. As part of the transaction, Debtor signed a Referral Registration agreement (“Referral Agreement”) on April 10, 2018 with the developer/seller, Williams Homes,2 which entitled him to a referral fee (“Commission”) of four percent of the base purchase price upon the close of escrow. Post-Petition Events On May 21, 2018, Debtor filed a chapter 7 petition. He did not list his interest in the Referral Agreement on his schedules. In June 2018, escrow closed on the San Leandro transaction, and Debtor received $27,116 pursuant to the Referral Agreement, half of which he paid to Mr. Easter pursuant to an oral agreement. Although he amended Schedule A/B in June 2018 and September 2018, he did not disclose receipt of the Commission in those amendments. In July 2018, the chapter 7 trustee filed a Report of No Distribution.

In August 2018, Appellees filed an adversary proceeding seeking to deny Debtor’s discharge under § 727(a)(4)(A) and to have the anti-SLAPP judgment declared nondischargeable under § 523(a)(6).3 Appellees moved

2 The Referral Agreement names WH Ventura 68, LLC, and WH Ventura 95, LLC, as the sellers, but the parties refer to the seller/developer as “Williams Homes.”

3 The captions in the complaint referenced §§ 523(a)(15) and 727(a)(4)(D) as well as § 727(a)(4)(A). But there were no allegations supporting a claim under § 523(a)(15), (continued...)

for summary judgment on their claims. Debtor filed an opposition, arguing that there were disputed issues of material fact regarding his intent with respect to both claims. He also requested that the court permit him to conduct discovery regarding the San Leandro transaction. The same day he filed his opposition, he filed amended schedules A/B and C to disclose the Commission and to claim it exempt. After a hearing, the bankruptcy court granted the motion. Debtor timely appealed.

JURISDICTION

The bankruptcy court had jurisdiction under 28 U.S.C. §§ 1334 and 157(b)(2)(I) and (J). We have jurisdiction under 28 U.S.C. § 158.

ISSUES

Whether the bankruptcy court erred in granting summary judgment to Appellees on their claim under § 727(a)(4)(A).

Whether the bankruptcy court erred in granting summary judgment to Appellees on their claim under § 523(a)(6).

STANDARD OF REVIEW

We review de novo the bankruptcy court’s decision to grant summary judgment. Plyam v. Precision Dev., LLC (In re Plyam), 530 B.R. 456, 461 (9th Cir. BAP 2015). “De novo review requires that we consider a

3 (...continued)

and the prayer for relief indicated that Appellees sought denial of discharge under “11 USC § 727(a)(4)(A) and/or 727(a)(4)(D).”

matter anew, as if no decision had been made previously.” Francis v. Wallace (In re Francis), 505 B.R. 914, 917 (9th Cir. BAP 2014) (citations omitted).

We must apply the same legal standards that all federal courts are required to apply in considering the propriety of summary judgment. Marciano v. Fahs (In re Marciano), 459 B.R. 27, 35 (9th Cir. BAP 2011), aff’d, 708 F.3d 1123 (9th Cir. 2013). Summary judgment is appropriate “if the movant shows that there is no genuine issue as to any material fact and the movant is entitled to judgment as a matter of law.” Wank v. Gordon (In re Wank), 505 B.R. 878, 886 (9th Cir. BAP 2014) (citing Civil Rule 56(a), applicable in adversary proceedings by Rule 7056). An issue is genuine if there is enough evidence for a reasonable trier of fact to make a finding in favor of the non-moving party, and an issue is material if it might legally affect the outcome of the case. Far Out Prods., Inc. v. Oskar, 247 F.3d 986, 992 (9th Cir. 2001) (citing Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248-49 (1986)).

DISCUSSION

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