In Re Farhid

171 B.R. 94, 1994 U.S. Dist. LEXIS 11341, 1994 WL 441252
CourtDistrict Court, N.D. California
DecidedAugust 2, 1994
DocketC-94-1370-DLJ
StatusPublished
Cited by20 cases

This text of 171 B.R. 94 (In Re Farhid) is published on Counsel Stack Legal Research, covering District Court, N.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 Farhid, 171 B.R. 94, 1994 U.S. Dist. LEXIS 11341, 1994 WL 441252 (N.D. Cal. 1994).

Opinion

ORDER

JENSEN, District Judge.

Nasrin Farhid appeals the decision of Judge Jaroslovsky in the Santa Rosa Divi *95 sion of the Northern District of California of the United States Bankruptcy Court. The appeal, challenging the discretion of the bankruptcy court in denying her request for an extension of time in which to file an objection to discharge or a nondisehargeability complaint, was heard before the Court on July 27,1994. Arlo Hale Smith appeared for the appellant. Mr. Farhid was represented by John G. Warner.

BACKGROUND

Factual Background

The moving party Nasrin Farhid (hereinafter “Nasrin”) is the former spouse of debtor Seyed Farhid (hereinafter “Seyed”). The parties were married in Iran on July 21, 1970. After moving to California twenty years later, they separated on September 12, 1990 and subsequently entered into a marital settlement agreement dated October 4, 1990. Seyed received most of the community property of the parties under their marital settlement agreement.

The marriage was dissolved on December 13, 1990, and shortly thereafter Nasrin returned to Iran where she lived for approximately six months. After Nasrin returned to the United States in March, 1991, she reconciled with Seyed, and the parties remarried six months later on November 3, 1991. The second marriage was also unsuccessful and on September 9, 1992, Nasrin filed a petition to have her second marriage to Seyed dissolved. That petition is still pending before the Marin County family law court.

In the second dissolution proceeding, the parties litigated the validity of the property division that was stated in their 1990 marital settlement agreement, and they also litigated the issues of child support and spousal support and related matters. In a memorandum decision dated December 23,1992, the Marin County family law court decided most of the property issues in favor of Seyed, but awarded Nasrin family support payable by Seyed in the sum of $3,000 per month commencing October 20, 1992. The family law court left undecided Nasrin’s claim of separate personal property.

When Seyed failed to pay Nasrin family support ordered by the family law court, the family law court found Seyed in contempt and ordered him to either pay forthwith the amount of support then due or to surrender himself to the Marin County Sheriff to serve fifteen (15) days in jail.

Seyed filed this Chapter 7 bankruptcy petition eight days later, and avoided paying family support as ordered by the court, and also avoided having to surrender himself to the Marin County Sheriff.

Procedural Background

On July 28, 1993, respondent filed a Chapter 7 bankruptcy petition. In said petition, he listed appellant as a creditor. Appellant was therefore notified of the creditor’s conference (341) hearing in this case. Despite such notice from the court, Nasrin failed to appear at the creditor’s conference. Moreover, she made no contact with the U.S. Trustee or ease trustee concerning her allegations of concealed assets. Nor did she make any effort to schedule a 2004 examination of the debtor.

Pursuant to Bankruptcy Rule 4007(c) and Bankruptcy Rule 4004(b), the deadline to file an objection to discharge or a nondischarge-ability complaint in this case was November 22, 1993. On that date, the appellant requested the court to extend the time in which to file her objection to discharge or nondis-ehargeability complaint by way of an Ex parte submission to the court. The respondent claimed that the request was not a proper motion filed on time and therefore appellant should be barred from objecting to the discharge. Judge Jaroslovsky determined that there was a timely motion and therefore appellant would not be procedurally barred from bringing her request.

On January 7,1994, appellant’s motion was heard before Judge Jaroslovsky. At the conclusion of the hearing, Judge Jaroslovsky denied the motion without further review.

STANDARD OF REVIEW

A. Appellate Review

The applicable standard of appellate review is that the bankruptcy court’s findings *96 of fact can be set aside by the district court if clearly erroneous, and legal conclusions of the bankruptcy court are reviewed under the de novo standard. Fed.R.Bankr. 8013.

B. Sanctions

Rule 11 permits sanctions of any person who signs an improper pleading submitted to the Court. The rule states that

Every pleading, motion, and other paper of a party represented by an attorney shall be signed ... by an attorney_ The signature of an attorney or party constitutes a certificate by the signer that the signer has read the pleading, motion, or other paper; that to the best of the signer’s knowledge, information, and belief formed after reasonable inquiry it is well grounded in fact and is warranted by existing law or a good faith argument for the extension, modification, or reversal of existing law, and that it is not interposed for any improper purpose, such as to harass or to cause unnecessary delay or needless increase in the cost of litigation.... If a pleading, motion, or other paper is signed in violation of this rule, the court ... shall impose ... an appropriate sanction_

Fed.R.Civ.P. 11. Three kinds of submissions are sanetionable under Rule 11: papers that are factually frivolous; papers that are legally frivolous; and papers that have been filed for an “improper purpose.” Business Guides, Inc. v. Chromatic Communications Enterprises, Inc., 892 F.2d 802, 808 (9th Cir.1989), affirmed, 498 U.S. 533, 111 S.Ct. 922, 112 L.Ed.2d 1140 (1991). A paper is frivolous if it is “both baseless and made without a reasonable and competent inquiry.” Townsend v. Holman Consulting Corp., 929 F.2d 1358, 1362 (9th Cir.1990) (en banc). This is an objective standard which requires no bad faith or otherwise culpable state of mind. Chambers v. NASCO, Inc., 501 U.S. 32, 46-48, 111 S.Ct. 2123, 2134, 115 L.Ed.2d 27 (1991); Townsend, 929 F.2d at 1362. Any application of Rule 11 must be made to further the rule’s central purpose, which is “to deter baseless filings in the District Courts and thus ... streamline the administration and procedures of the federal courts.” Cooter & Gell v. Hartmarx Corp., 496 U.S. 384, 393, 110 S.Ct. 2447, 2454, 110 L.Ed.2d 359 (1990) (citing Advisory Comm. Note on Rule 11, 28 U.S.C.App., p. 536).

DISCUSSION

A. The Appeal

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Michael P. McMahon
E.D. New York, 2022
John H. Holland
D. Vermont, 2019
Lerner Master Fund, LLC v. Paige (In re Paige)
476 B.R. 867 (W.D. Pennsylvania, 2012)
In Re Chatkhan
455 B.R. 365 (E.D. New York, 2011)
In Re Bomarito
448 B.R. 242 (E.D. California, 2011)
In Re Ballas
342 B.R. 853 (M.D. Florida, 2005)
In Re Denike
322 B.R. 452 (M.D. Florida, 2005)
In Re Stonham
317 B.R. 544 (D. Colorado, 2004)
In Re Nowinski
291 B.R. 302 (S.D. New York, 2003)
Kohl v. Loefgren (In Re Loefgren)
305 B.R. 288 (W.D. Wisconsin, 2003)
In Re Nevius
269 B.R. 209 (N.D. Indiana, 2001)
In Re Woods
260 B.R. 41 (N.D. Florida, 2001)
Kornfield v. Schwartz
214 B.R. 705 (W.D. New York, 1997)
In Re Grillo
212 B.R. 744 (E.D. New York, 1997)
In Re Desiderio
209 B.R. 342 (E.D. Pennsylvania, 1997)
In Re Mendelsohn
202 B.R. 831 (S.D. New York, 1996)
In Re Davis
195 B.R. 422 (W.D. Missouri, 1996)
In Re Leary
185 B.R. 405 (D. Massachusetts, 1995)

Cite This Page — Counsel Stack

Bluebook (online)
171 B.R. 94, 1994 U.S. Dist. LEXIS 11341, 1994 WL 441252, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-farhid-cand-1994.