In re Dobbs

535 B.R. 675, 2015 Bankr. LEXIS 2794, 2015 WL 4987656
CourtUnited States Bankruptcy Court, N.D. Mississippi
DecidedAugust 20, 2015
DocketCase No.: 15-11096-JDW
StatusPublished
Cited by6 cases

This text of 535 B.R. 675 (In re Dobbs) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, N.D. Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Dobbs, 535 B.R. 675, 2015 Bankr. LEXIS 2794, 2015 WL 4987656 (Miss. 2015).

Opinion

MEMORANDUM OPINION AND ORDER

Judge Jason D. Woodard, United States Bankruptcy Judge

This matter comes before the Court on the Order to Show Cause (the “Show Cause Order”) (Dkt. #35), entered on May 14, 2015, in this now-dismissed chapter 13 bankruptcy case of Jackey L. Dobbs (the “Debtor”). As stated in the Show Cause Order, the issues discussed herein first came to the Court’s attention after a review of the Chapter IS Voluntary Petition (the “2015 Petition”)(Case No. 15-11096; Dkt. # 1), the Certificate of Credit Counseling (the “First Certificate”)(Case No. 15-11096; Dkt. # 3), a second Certificate of Credit Counseling (the “Second Certificate”)(Case No. 15-11096; Dkt. # 16), and the Debtor’s testimony at a May 12, 2015 hearing. At that time, the Debtor appeared and testified that his former attorney, Neal H. Labovitz, had forged the Debtor’s signature on the bank[679]*679ruptcy petition and filed a bankruptcy case on the Debtor’s behalf without being authorized to do so. The Debtor also testified that the First Certificate was falsified, as he never took the credit counseling. Upon consideration of the 2015 Petition, the First and Second Certificates, and the Debtor’s May 12 testimony, the Court found it necessary for Mr. Labovitz, to appear and show cause why sanctions and other disciplinary actions should not be imposed.

Pursuant to the directives of the Show Cause Order, a hearing was held on July 7, 2015, at which time Mr. Labovitz appeared as directed. Mr. Labovitz did not call any witnesses, nor did he present any new evidence, but instead relied on his own recitation of events as an explanation to the Court. The details of the July 7 hearing — and of this matter as a whole — are discussed below. Based on Mr. Labovitz’s own statements, it is clear that the Debt- or’s May 12 testimony regarding the forged signatures and unauthorized filings was true.

In short, the Court has concluded that Mr. Labovitz put the Debtor in bankruptcy without the Debtor’s authorization or knowledge, forged the Debtor’s signature, had the Debtor’s estranged wife take a credit counseling course in place of the Debtor, and then filed fabricated documents with the Court.

Mr. Labovitz owes a duty of candor to this Court and fidelity to his clients. These duties are not only two of the most important attributes of an ethical lawyer, but are absolute baseline requirements for the practice of law. Mr. Labovitz has failed at both in this case.

I. JURISDICTION

This Court has jurisdiction pursuant to 28 U.S.C. § 151, 157(a) and 1334(b) and the United States District Court for the Northern District of Mississippi’s Order of Reference of Bankruptcy Cases and Proceedings Nunc Pro Tunc Dated August 6, 1984. This is a core proceeding arising under Title 11 of the United States Code (the “Bankruptcy Code”) as defined in 28 U.S.C. § 157(b)(2)(A).1

II. BACKGROUND

As this matter originally came to the attention of the Court through an examination of the Debtor’s now-dismissed chapter 13 case, a review of that case history is appropriate. The following summary of facts and events is taken from the Show Cause Order, through which Mr. Labovitz was given notice of the allegations made against him (Dkt.# 35).

A. The 2013 Case

On February 22, 2013, the Debtor and his then-wife, Janette Dobbs,2 filed a joint [680]*680Chapter IS Voluntary Petition (the “2013 Case”)(Case No. 13-10662; Dkt. # 1). At the time the 2013 Case was filed, Mr. Labovitz was counsel of record for the Debtor and Mrs. Dobbs. On April 8, 2013, a proposed plan of reorganization was filed (the “2013 Plan”)(Case No. 13-10662; Dkt. # 16), though no plan was ever confirmed.

Objections to confirmation of the 2013 Plan were filed by both the case trustee, Locke Barkley, and creditor Bank of Holly Springs (the “Bank”)(Case No. 13-10662; Dkts. # 18, 23, 91 and 95). In addition to the objections, the Bank filed a motion to lift stay (the “Motion to Lift”) (Case No. 13-10661; Dkt. # 19). Although the response deadline was May 7, an objection to the Motion to Lift was not filed until May 20. (Case No. 13-10662; Dkt. # 34). The Bank subsequently filed an amended motion to lift stay (the “Second Motion to Lift”)(Case No. 13-10662; Dkt. #88). The Motion to Lift and Second Motion to Lift sought stay relief as to the same property that was the subject of the Bank’s objections. No response was filed or defense offered as to the Second Motion to Lift, and the stay was lifted. (Case No. 13-10662; Dkt. # 105).

Based upon the termination of the stay in relation to the real property, the Court found that the Bank’s objections to confirmation should be sustained. Accordingly, on December 23, 2014, an order was entered (the “December 23 Order”)(Case No. 13-10662; Dkt. # 99) sustaining the various objections to confirmation made by the Trustee and Bank. The December 23 Order further denied confirmation of the 2013 Plan, and ordered the debtors to file an amended plan within sixty (60) days from entry of the order. No amended plan was filed as directed by the December 23 Order, and on March 24, 2015, the 2013 Case was dismissed (Case No. 13-10662; Dkt. # 114).

B. The 2015 Petition and the First Certificate

On March 26, 2015, this case was commenced with the filing of the 2015 Petition and First Certificate (the “2015 Case”).3 According to the First Certificate, the Debtor obtained his mandatory credit counseling on March 26, 2015 at 9:04 AM, several hours before the 2015 Petition was filed. The 2015 Petition contains what purports to be the Debtor’s electronic signature and the certifications that he took credit counseling, and Mr. Labovitz was again listed as counsel of record for the Debtor. The 2015 Petition also contains the electronic signature of Mr. Labovitz.

On April 1, 2015, Mr. Labovitz filed a Motion to Withdraw as Attorney (Case No. 15-11096; Dkt. # 6), which was subsequently granted by this Court without objection (Case No. 15-11096; Dkt. #22). On April 8, 2015, William Fava filed a Notice of Appearance Combined with Request for Notices and Copies (Case No. 15-11096; Dkt. # 8), assuming the role of counsel of record for the Debtor. On April 9, 2015, Mr. Fava filed the Second Certificate (Case No. 15-11096; Dkt. # 16) on the Debtor’s behalf. According to the Second Certificate, the Debtor completed credit counseling on April 8, 2015. Because 11 U.S.C. § 109 requires that a debtor obtain credit counseling within the 180-days prior to filing for bankruptcy protection, the Court entered an Order Scheduling Show Cause Hearing for Fail[681]*681ure to Obtain Pre-Petition Credit Counseling (Case No. 15-11096; Dkt. #21). Pursuant to that order, a hearing was scheduled for, and held on, May 12, 2015.

C. The May 12 Hearing

The Debtor and Mr. Fava appeared at the May 12 hearing. At that time, the Debtor testified as to the history of his 2015 Case.

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Cite This Page — Counsel Stack

Bluebook (online)
535 B.R. 675, 2015 Bankr. LEXIS 2794, 2015 WL 4987656, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-dobbs-msnb-2015.