In re: Frances Diane Toth

CourtUnited States Bankruptcy Appellate Panel for the Ninth Circuit
DecidedJune 20, 2017
DocketAZ-16-1052-BJuL
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 2017).

Opinion

FILED JUN 20 2017 SUSAN M. SPRAUL, CLERK 1 NOT FOR PUBLICATION U.S. BKCY. APP. PANEL OF THE NINTH CIRCUIT 2 3 UNITED STATES BANKRUPTCY APPELLATE PANEL 4 OF THE NINTH CIRCUIT 5 In re: ) BAP No. AZ-16-1052-BJuL ) 6 FRANCES DIANE TOTH, ) Bk. No. 14-18264-DPC ) 7 Debtor. ) Adv. No. 15-00105-DPC ) 8 ) FRANCES DIANE TOTH, ) 9 ) Appellant, ) 10 ) v. ) M E M O R A N D U M1 11 ) TROY SHORT, ) 12 ) Appellee. ) 13 ______________________________) 14 Submitted Without Oral Argument on May 18, 2017 15 Filed - June 20, 2017 16 Appeal from the United States Bankruptcy Court 17 for the District of Arizona 18 Honorable Daniel P. Collins, Chief Bankruptcy Judge, Presiding 19 Appearances: Appellant Frances Diane Toth pro se on brief; 20 Daniel W. Glasser and David S. Chipman of Chipman Glasser, LLC on brief for appellee Troy Allan 21 Short. 22 Before: BRAND, JURY and LAFFERTY, Bankruptcy Judges. 23 24 25 26 1 27 This disposition is not appropriate for publication. Although it may be cited for whatever persuasive value it may 28 have, it has no precedential value. See 9th Cir. BAP Rule 8024-1. 1 Chapter 72 debtor Frances Diane Toth appeals the bankruptcy 2 court's judgment that a debt owed to Troy Short, which arose from 3 a prepetition state court judgment for various intentional tort 4 claims, was excepted from Debtor's discharge under § 523(a)(6). 5 We AFFIRM. 6 I. FACTUAL BACKGROUND AND PROCEDURAL HISTORY 7 A. Events leading to the Colorado Judgment 8 1. Events prior to the parties' April 2011 settlement 9 Debtor and Short were a couple from 2008 to 2011 and lived 10 together in Denver, Colorado. During their tumultuous 11 relationship, they were both arrested for domestic abuse and on 12 April 4, 2011, Debtor (and some of her family members, including 13 her adult son and brother) obtained a permanent restraining order 14 against Short. Short was unable to obtain a permanent restraining 15 order against Debtor or her son and brother. 16 After Debtor and Short parted ways in February 2011, which 17 involved the Denver police needing to supervise the two moving out 18 of the Denver home, each claimed the other had stolen various 19 personal property. This led to four separate actions filed in the 20 Denver Small Claims Court against Short by Debtor, her son Tyler, 21 her brother Robert Lelito and Debtor's former husband. Short 22 alleged counterclaims for over $15,000 in damages and loss of his 23 property, removed the cases to the Denver County Court and caused 24 the four separate lawsuits to be consolidated into one. 25 On April 11, 2011, after several hours of mediation, the 26 27 2 Unless specified otherwise, all chapter, code and rule references are to the Bankruptcy Code, 11 U.S.C. §§ 101-1532, and 28 the Federal Rules of Bankruptcy Procedure, Rules 1001-9037.

-2- 1 parties settled their claims and executed a settlement agreement. 2 Thereafter, all of Debtor's and Lelito's small claims actions and 3 Short's counterclaims were dismissed. Short then moved to Buena 4 Vista (Chaffee County), Colorado, a few hours away from Denver. 5 2. Events after the parties' April 2011 settlement and the Colorado Judgment 6 7 Shortly after the settlement, Debtor and Lelito filed no less 8 than nine small claims actions against Short in various counties. 9 Debtor alone filed two simultaneous actions in Denver County in 10 early 2012 and then filed a third in Chaffee County. Debtor's two 11 Denver County actions were moved to Chaffee County. Eventually, 12 all three of Debtor's small claims actions were dismissed and re- 13 filed in one civil complaint, discussed below, due to the dollar 14 amount involved. 15 In June 2013, Debtor, pro se and now living outside of 16 Colorado, filed a civil complaint against Short in Chaffee County 17 (the "Civil Action"), which led to the Colorado Judgment. Debtor 18 alleged claims for fraud, conversion, theft and intentional 19 infliction of emotional distress. 20 Short alleged counterclaims against Debtor and Lelito in the 21 Civil Action for abuse of process, defamation, interference with 22 prospective business advantage and civil conspiracy. One document 23 attached to Short's counter-complaint is what has been referred to 24 as the Scandalous Letter. The Scandalous Letter was not signed, 25 but Short alleged that Debtor and Lelito had authored it and sent 26 it to those persons closest to Short — his father and step-mother, 27 his employer, and other business and social acquaintances. Short 28 alleged that the Scandalous Letter contained false and defamatory

-3- 1 statements injurious to his reputation with business and other 2 acquaintances, noting especially the letter's last sentence: 3 "Please note that associating further with this individual you are 4 doing [sic] at the personal risk of you and your families." 5 In her 40-page response to Short's counterclaims 6 ("Response"), Debtor stated repeatedly that she "look[ed] forward 7 to easily proving" her case at trial and that she was "extremely 8 anxious to get [Short] to trial." Debtor also made disparaging 9 remarks about Short, that his "lies [were] barefaced and well 10 documented," that Short would "continue to physically attack and 11 steal from other victims as he is unstable," that "the only thing 12 that ha[d] kept Short out of jail [was] his daddy," that Short was 13 a "sociopathic liar," and that Short suffered from "mental 14 illness." 15 By an order dated January 29, 2014, the state court ordered 16 the parties to appear at a pretrial conference on April 10, 2014, 17 at which the court would address all pending motions. The court 18 stated that an "order to appear" was necessary based on Debtor's 19 and Lelito's "prior failure to comply with court orders and the 20 failure to resolve certain matters via telephonic hearings[."] 21 On April 1, 2014, Debtor sent a letter to the state court 22 requesting that she be contacted by email or phone for purposes of 23 receiving process, because she was out of state for training and 24 would not be receiving mail at her home in California (the 25 "April 1 Letter"). The email address she provided the court was 26 "tsblsht@yahoo.com." 27 Debtor and Lelito failed to appear in person at the April 10 28 hearing, but Debtor attempted to appear by telephone. The court

-4- 1 did not find her reasons for not appearing in person persuasive. 2 The court entered a default judgment against Lelito on April 10 3 for failing to appear, but granted Debtor a continuance on the 4 condition that by May 15, 2014, she pay Short his attorney's fees 5 and costs incurred for his counsel's April 10 appearance. The 6 court warned that if Debtor failed to pay Short it would enter a 7 default judgment against her with respect to both her affirmative 8 claims and Short's counterclaims against her. 9 As part of its April 10 order, the state court set a hearing 10 for May 29, 2014, to determine Short's damages as against Lelito, 11 and in the event of Debtor's failure to pay Short's fees and 12 costs, for entry of a final judgment and for determination of 13 Short's damages as against Debtor. Debtor did not pay Short his 14 attorney's fees and costs by May 15, 2014. 15 On May 28, 2014, Debtor sent a letter to the state court (the 16 "May 28 Letter"), indicating that she would not be attending the 17 default judgment evidentiary hearing set for the next day. Debtor 18 stated that she had spoken to a lawyer about protecting her house 19 in Arizona from any judgment Short may receive.

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In re: Frances Diane Toth, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-frances-diane-toth-bap9-2017.