In re: Clements Electric Texas, LLC

United States Bankruptcy Court, N.D. Texas·Decided July 10, 2026·No. 24-33418·Unknown

Opinion

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Signed July 9, 2026 Ne United States Bankruptcy Judge

UNITED STATES BANKRUPTCY COURT FOR THE NORTHERN DISTRICT OF TEXAS DALLAS DIVISION § In re: § Chapter 11 § Clements Electric Texas, LLC, § Case No. 24-33418-mvl11 § Debtor. § § MEMORANDUM OPINION AND ORDER HOLDING ADRIANO BUDRIIN CONTEMPT OF COURT AND SANCTIONING HIM FOR FILING ABUSES Comes now before the Court is a matter in connection with the Sua Sponte Order for Adriano Budri to Appear Before the Court on June 3, 2026, at 9:30 a.m. and Show Cause Why He Should Not Be Further Sanctioned for Violation of Court Orders (the “Show Cause Order’) entered by the Court on May 15, 2026 [ECF No. 232]. As detailed in the Show Cause Order, the Court ordered Adriano Budri (“Mr. Budri’”) to appear before the Court, in person, and show cause why he should not be held in contempt of court and/or further sanctioned for continued and persistent violations of the Order Denying Motions Filed by Adriano Budri, Designating Adriano

Budri as Vexatious Litigant, and Imposing Pre-Filing Restrictions (the “Vexatious Litigant Order”) entered by the Court on April 28, 2026 [ECF Nos. 191, 192], and further amended on May 29, 2026 [ECF No. 245].1 The Court held a hearing with respect to the Show Cause Order on June 3, 2026 (the “Show Cause Hearing”). Counsel for Clements Electric Texas, LLC (the “Debtor”) appeared, as did the

Subchapter V Trustee (the “Trustee”). Additionally, counsel for the United States Trustee (the “UST”) appeared. Mr. Budri appeared, pro se, telephonically, notwithstanding explicit instructions by the Court to appear at the Show Cause Hearing in person. After considering the evidence presented and the testimony provided, the Court issued a bench ruling finding Mr. Budri in contempt of court. Likewise, the Court stated that it would issue its own memorandum opinion and order, further detailing its bench ruling at the Show Cause Hearing. Accordingly, the Court hereby holds Mr. Budri in contempt of court and will impose those sanctions described at length herein. The following constitutes the analysis underlying the Court’s rulings.2

I. FACTUAL HISTORY The Court has now had three separate opportunities to address Mr. Budri’s actions by written orders—namely, the Vexatious Litigant Order, the Show Cause Order, and the Order Denying Adriano Kruel Budri’s Various Motions for Reconsideration (the “Reconsideration

1 All references to the Vexatious Litigant Order contained herein shall be in reference to ECF No. 245. 2 The Court notes that the Debtor filed its own Motion for Entry of Order Finding Adriano Budri in Contempt of Court and for Sanctions (the “Debtor’s Sanctions Motion”) on May 19, 2026 [ECF No. 236]. The Debtor also filed a Supplement to the Debtor’s Sanctions Motion on May 28, 2026 [ECF No. 243]. Subsequently, Mr. Budri filed a Creditor Adriano Kruel Budri’s Opposition and Response to Debtor’s Motion for Entry of Order Finding Adriano Budri in Contempt and for Sanction [ECF Docket # 236] and Creditor Adriano Kruel Budri’s Opposition and Response to Debtor’s Supplement to Motion for Entry of Order Finding Adriano K. Budri in Contempt and for Sanctions [ECF No. 243] on June 18, 2026 [ECF No. 270]. For purposes of this Order, the Debtor’s Sanctions Motion, the Supplement filed in support of same, and the Response filed by Mr. Budri at ECF No. 270 shall not be further addressed or made part of the ruling herein. 2 Order”) entered by the Court on May 5, 2026 [ECF No. 207]. However, the highly unusual factual history of this case, as well as Mr. Budri’s incessant filings and correspondence with the Court, its staff, and various parties to the case (the “Budri Filings”) bear re-emphasizing. On October 30, 2024, the Debtor filed bankruptcy pursuant to Subchapter V of Chapter 11 of the Bankruptcy Code [ECF No. 1]. On November 25, 2024, the Debtor filed its Schedules and

Statement of Financial Affairs (the “SOFA”) [ECF Nos. 34 and 35]. In neither the Schedules nor the SOFA did the Debtor allude to any unsecured claims held by Mr. Budri. However, according to the Budri Filings, there existed a purported prepetition dispute over $179 between Mr. Budri and the Debtor and/or its principal, Mr. Michel Clements (“Mr. Clements”) with regard to electrical repairs that the Debtor completed at Mr. Budri’s residence. More specifically, Mr. Budri contended in many of the Budri Filings that the Debtor owed Mr. Budri $179 arising from a refund claim in connection with an investigation by the Texas Department of Licensing & Regulation (the “TDLR”), which, on February 28, 2025 (post- petition), resulted in the TDLR sending the Debtor a letter (the “TDLR Letter”) stating that the

Debtor owed Mr. Budri the aforementioned amount. See ECF No. 130 at 2; see also ECF No. 163- 5 (a copy of the TDLR Letter dated February 28, 2025). At a hearing held on April 21, 2026, in connection with both the Motion to Designate Adriano Budri as a Vexatious Litigant and Impose Pre-Filing Restrictions filed by the Debtor on April 13, 2026 [ECF No. 155], as well as various docket entries comprising the Budri Filings (the “Vexatious Litigant Hearing”), Mr. Clements testified that, upon receipt of the TDLR letter, he contacted the TDLR to provide notice of the Debtor’s pending bankruptcy case, to which the TDLR instructed Mr. Clements that the Debtor did not need to pay the $179. See ECF No. 203 (transcript of the Vexatious Litigant Hearing).

3 On June 17, 2025, Mr. Budri filed a Proof of Claim (Claim No. 12) (the “Budri Claim”) in the amount of $179, months after the January 8, 2025, claims bar date. Nevertheless, it is undisputed that Mr. Budri did not receive prior notice of the Debtor’s bankruptcy case or the bar date for filing non-governmental proofs of claim prior to January 8, 2025. ECF No. 130 at 2–3. Beginning no later than October 3, 2025, Mr. Budri was added to the service list. See ECF No. 84

(Certificate of Chapter 11 Plan and Notice of Confirmation Hearing). Nevertheless, Mr. Budri did not actively participate in the bankruptcy proceedings, including plan confirmation. On January 28, 2026, the Debtor filed an objection to the Budri Claim as late-filed. ECF No. 114. Mr. Budri did not file a corresponding motion to deem the Budri claim timely filed. However, after the Debtor determined that Mr. Budri had not received timely notice of the bar date, the Debtor quickly withdrew its objection on February 8, 2026.3 Therefore, the claim was deemed allowed. It was at this point, in late February 2026, after the Debtor has already withdrawn the objection to Mr. Budri’s claim, that Mr. Budri began filing a litany of repetitive pleadings contending that the Debtor: (1) knew about the outstanding $179 claim; (2) failed to amend the

Schedules or include Mr. Budri on the Debtor’s creditor matrix in a timely fashion that would have provided Mr. Budri notice of the case prior to the bar date to file his proof of claim; (3) prevented Mr. Budri from participating in the distribution of the estate’s assets; and (4) intentionally excluded Mr. Budri from the above-referenced documents as a “deliberate tactical move to deny to [Mr. Budri] his procedural due process” and constitutional rights. ECF No. 130 at 2–3. Mr. Budri began

3 ECF No. 127 (“Debtor in the above-styled and referenced bankruptcy case . . . files this its Notice of Withdrawal of Debtor’s Objection to Proof of Claim of Adriano Kruel Budri (Claim No. 12) . . . and would show the Court that it no longer desires to pursue the Objection.

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In re: Clements Electric Texas, LLC, (Tex. 2026).

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