In re: Frances Diane Toth

CourtUnited States Bankruptcy Appellate Panel for the Ninth Circuit
DecidedOctober 13, 2016
DocketAZ-15-1425-FLJu
StatusUnpublished

This text of In re: Frances Diane Toth (In re: Frances Diane Toth) is published on Counsel Stack Legal Research, covering United States Bankruptcy Appellate Panel for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re: Frances Diane Toth, (bap9 2016).

Opinion

FILED OCT 13 2016 1 NOT FOR PUBLICATION SUSAN M. SPRAUL, CLERK U.S. BKCY. APP. PANEL 2 OF THE NINTH CIRCUIT

3 UNITED STATES BANKRUPTCY APPELLATE PANEL 4 OF THE NINTH CIRCUIT 5 In re: ) BAP No. AZ-15-1425-FLJu ) 6 FRANCES DIANE TOTH, ) Bk. No. 14-18264-DPC ) 7 Debtor. ) _____________________________ ) 8 ) FRANCES DIANE TOTH, ) 9 ) Appellant, ) 10 ) v. ) MEMORANDUM* 11 ) TROY SHORT; WILLIAM E. PIERCE,) 12 Trustee, ) ) 13 Appellees.** ) ______________________________) 14 Argued and Submitted on September 23, 2016 15 at Phoenix, Arizona 16 Filed – October 13, 2016 17 Appeal from the United States Bankruptcy Court for the District of Arizona 18 Honorable Daniel P. Collins, Chief Bankruptcy Judge, Presiding 19 20 Appearances: Appellant Frances Diane Toth argued pro se; David Smith Chipman of Chipman Glasser, LLC argued on 21 behalf of Appellee Troy Short. 22 Before: FARIS, LAFFERTY, and JURY, Bankruptcy Judges. 23 24 * This disposition is not appropriate for publication. 25 Although it may be cited for whatever persuasive value it may 26 have, see Fed. R. App. P. 32.1, it has no precedential value, see 9th Cir. BAP Rule 8024-1. 27 ** Appellee William E. Pierce did not file an answering 28 brief or otherwise participate in this appeal. 1 INTRODUCTION 2 Faced with the prospect of losing her home, appellant 3 Frances Diane Toth complains that the mistakes and incompetence 4 of her bankruptcy counsel denied her counsel and the effective 5 assistance of counsel, the right to a fair trial, and due 6 process. She appeals the bankruptcy court’s rulings denying 7 conversion of her chapter 71 bankruptcy case to chapter 13, 8 disapproving a compromise between chapter 7 trustee William E. 9 Pierce (“Trustee”) and appellee Troy Allen Short, and ordering 10 the Trustee to market and sell her house. 11 Ms. Toth deserves our sympathy. Mr. Short abused Ms. Toth 12 during their stormy relationship. In the litigation that ensued, 13 Ms. Toth did not fare well, mostly because of her unfortunate 14 decision to stop participating in that litigation at a critical 15 juncture. But this appeal concerns only two orders of the 16 bankruptcy court, and those orders only addressed a small part of 17 the dispute between Ms. Toth and Mr. Short. Ms. Toth has not 18 convinced us that either of those orders is erroneous. 19 Accordingly, we AFFIRM. 20 21 22 23 24 25 1 26 Unless specified otherwise, all chapter and section references are to the Bankruptcy Code, 11 U.S.C. §§ 101-1532, all 27 “Rule” references are to the Federal Rules of Bankruptcy Procedure, Rules 1001-9037, and all “Civil Rule” references are 28 to the Federal Rules of Civil Procedure, Rules 1-86.

2 1 FACTUAL BACKGROUND2 2 A. The Colorado civil actions and judgment against Ms. Toth 3 Ms. Toth and Mr. Short lived together in Denver, Colorado 4 for approximately two and a half years. During the course of 5 their relationship, they were involved in numerous domestic 6 disputes, some of which gave rise to mutual accusations of 7 threats and physical abuse. 8 The relationship ended in 2011 amid escalating tensions. 9 Each sought restraining orders against the other, and the parties 10 filed competing civil complaints against each other. In April 11 2011, a Colorado state court entered a permanent civil 12 restraining order against Mr. Short and denied Mr. Short’s 13 request for restraining orders against Ms. Toth and certain of 14 her family members and acquaintances. The parties also mediated 15 and settled their original competing civil lawsuits against each 16 other. 17 Thereafter, Ms. Toth left Colorado to live in Arizona in a 18 home that she owned from her previous marriage (the “Arizona 19 Property”). She claimed that she kept the Colorado court updated 20 as to her Arizona address. 21 The parties made reciprocal claims of harassment based on 22 multiple lawsuits filed in various jurisdictions. (Both claimed 23 that, as a result, they had to play “whack-a-mole.”) Ms. Toth 24 (and her brother) filed multiple small claims lawsuits against 25 26 2 Ms. Toth presents us with an incomplete record on appeal. 27 We have exercised our discretion to review the bankruptcy court’s docket, as appropriate. See Woods & Erickson, LLP v. Leonard 28 (In re AVI, Inc.), 389 B.R. 721, 725 n.2 (9th Cir. BAP 2008).

3 1 Mr. Short in Denver County, Colorado, Chaffee County, Colorado, 2 and Mohave County, Arizona. These actions were consolidated into 3 a single lawsuit in Chaffee County, Colorado. 4 Mr. Short filed counterclaims against Ms. Toth and her 5 brother for abuse of the legal process, defamation, interference 6 with prospective business advantage, and civil conspiracy. The 7 Colorado court scheduled a hearing to address a variety of 8 pending motions. It directed that, based on Ms. Toth’s “prior 9 failure to comply with Court orders and the failure to resolve 10 certain matters via telephonic hearings,” all parties needed to 11 be present in person. However, Ms. Toth failed to appear in 12 person at the hearing. The court granted Ms. Toth a continuance 13 on the condition that she pay Mr. Short’s attorneys’ fees and 14 costs incurred as a result of the hearing; the court warned that, 15 if Ms. Toth did not make such payment, it would enter default 16 judgment against her as to both her claims against Mr. Short and 17 Mr. Short’s counterclaims against her. 18 When Ms. Toth failed to pay Mr. Short’s attorneys’ fees and 19 costs, Mr. Short moved for default. The Colorado court held that 20 Ms. Toth had “demonstrated willful and deliberate disregard of 21 [the] Court’s orders and [her] obligations as a litigant under 22 the applicable rules.” The court therefore entered default 23 against Ms. Toth. 24 The Colorado court scheduled an evidentiary hearing to 25 determine Mr. Short’s damages. The day prior to the hearing, the 26 court received a letter from Ms. Toth wherein she recapitulated 27 her claims against Mr. Short and indicated that she would not 28 appear at the hearing. She stated that she has “no qualms about

4 1 filing bankruptcy against any judgment that is in his favor.” 2 She told the judge that Mr. Short “is a true piece of s**t and I 3 am scraping him off my shoe. I am throwing my hands in the air, 4 your honor, as I have no other options.” 5 The Colorado court held the evidentiary hearing the 6 following day. The court adopted the facts as alleged in 7 Mr. Short’s counterclaim and stated that Mr. Short had satisfied 8 each element of his claims. The court awarded Mr. Short $133,500 9 in lost income and $57,134.80 in attorneys’ fees (“Colorado 10 Judgment”). Ms. Toth claims she was not properly served with the 11 judgment; she did not appeal or seek relief from the judgment in 12 the Colorado state courts. 13 Mr. Short then domesticated the Colorado Judgment in 14 Arizona and recorded a judgment lien on the Arizona Property. In 15 December 2014, Mr. Short apparently seized the Arizona Property. 16 Ms. Toth claimed that she did not receive notice of the 17 domestication proceedings or the judgment lien until days after 18 the seizure. Mr. Short proceeded to obtain a writ of execution 19 against the Arizona Property. 20 B. Ms. Toth’s chapter 7 bankruptcy 21 On December 15, 2014, Ms. Toth filed her chapter 7 22 bankruptcy petition. She had retained attorney Dale Stoker to 23 represent her in the bankruptcy proceedings. 24 Ms. Toth filed a motion (“Motion to Avoid Lien”) to avoid 25 Mr. Short’s judicial lien on the Arizona Property under § 522(f).

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