In re: Gerald Trey Costello

CourtUnited States Bankruptcy Court, C.D. California
DecidedJanuary 21, 2026
Docket8:25-ap-01312
StatusUnknown

This text of In re: Gerald Trey Costello (In re: Gerald Trey Costello) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, C.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: Gerald Trey Costello, (Cal. 2026).

Opinion

2 FILED & ENTERED

4 JAN 21 2026

CLERK U.S. BANKRUPTCY COURT 6 C B e Y n b t r o a l t l e D i s t r i c D t E o P f U C T a Y li f C or L n E ia RK 7

8 UNITED STATES BANKRUPTCY COURT 9 CENTRAL DISTRICT OF CALIFORNIA 10 SANTA ANA DIVISION 11

12 In re: CHAPTER 7

13 Gerald Trey Costello, Case No.: 8:25-bk-11944-SC Adv. No.: 8:25-ap-01312-SC

ORDER GRANTING DEFENDANT’S 15 MOTION TO DISMISS ACTION FOR

16 Debtor(s). FAILURE TO STATE A CLAIM [DK. 6]

17 Vacated Hearing: D ate: January 20, 2026 18 Catherine Michelle Davania, Time: 1:30 p.m. 19 Courtroom: 5C Plaintiff(s), 20 v.

21 Gerald Trey Costello, 22 Defendant(s). 23 24 The Court has reviewed Defendant Gerald Trey Costello’s Motion to Dismiss 25 Action for Failure to State a Claim Upon Which Relief Can Be Granted Pursuant to 26 Federal Rule of Civil Procedure 12(b)(6), as incorporated by Federal Rule of Bankruptcy 27 Procedure 7012 [Dk. 6] ("Motion"), Plaintiff Catherine Michelle DaVania’s Opposition 28 thereto [Dk. 8] ("Opposition"), Plaintiff Catherine Michelle DaVania’s Motion for Order 1 Deeming Adversary Complaint Timely Filed [Dk. 3] ("Motion to Deem Complaint 2 Timely"), and Defendant Gerald Trey Costello’s Opposition to the Motion to Deem the 3 Complaint Timely Filed [Dk. 5] ("Opposition to Motion to Deem Complaint Timely"). The 4 Court has also reviewed the dockets in this adversary proceeding and in the underlying 5 bankruptcy case, including the Notices of Electronic Filing and the Clerk’s Notice of 6 Error issued in connection with Plaintiff’s filings. Based on the pleadings and the record, 7 the Court finds that this matter is appropriate for disposition without a hearing, and for 8 the reasons set forth below, GRANTS the Motion and VACATES the January 20, 2026 9 hearing. 10 I. General Background and Procedural Posture 11 Debtor Gerald Trey Costello ("Debtor" or "Defendant") filed a voluntary petition 12 for relief under Chapter 7 of the Bankruptcy Code on July 16, 2025. Plaintiff Catherine 13 Michelle DaVania ("Plaintiff") was properly scheduled on Schedule F and received 14 notice of the bankruptcy filing. The deadline to file a complaint to determine the 15 dischargeability of a debt under 11 U.S.C. § 523(c) was October 27, 2025. 16 On October 27, 2025, Plaintiff electronically filed a document on the docket of the 17 main bankruptcy case using the CM/ECF event code "Third-Party Complaint." The 18 docket reflects the entry as "Third-Party Complaint by Catherine Michelle DaVania 19 against Gerald Trey Costello" (Entered: 10/27/2025). When opened, the document itself 20 is captioned "COMPLAINT FOR NON-DISCHARGEABILITY UNDER 11 U.S.C. §§ 21 523(a)(6) AND 523(a)(2)(A)" and seeks a determination that Plaintiff’s claim is excepted 22 from discharge. 23 Notwithstanding the document’s caption and substantive allegations, Plaintiff did 24 not, on October 27, 2025, commence an adversary proceeding through the Court’s 25 CM/ECF system, did not pay the adversary filing fee, and no adversary proceeding 26 number was assigned on that date. 27 On the morning of October 28, 2025, procedurally, the Clerk issued a Notice to 28 Filer of Error and/or Deficient Document, stating that the document had been filed in the 1 incorrect case and instructing Plaintiff to withdraw the document and re-file it in the 2 correct case. Later that same day, Plaintiff opened an adversary proceeding, paid the 3 required filing fee, and re-filed the complaint. The Notice of Electronic Filing reflects that 4 the adversary complaint was filed on October 28, 2025 at 3:09 p.m. 5 Plaintiff thereafter filed a Motion for Order Deeming Adversary Complaint Timely 6 on October 29, 2025 [Dk. 3], relying primarily on Federal Rule of Bankruptcy Procedure 7 5005(c). That motion was never set for hearing. Defendant filed an Opposition to the 8 Motion to Deem Complaint Timely on November 14, 2025 [Dk. 5]. On December 1, 9 2025, Defendant filed the present Motion to Dismiss [Dk. 6], asserting that the 10 adversary complaint was untimely under Federal Rule of Bankruptcy Procedure 4007(c) 11 and therefore failed to state a claim upon which relief could be granted. Plaintiff filed an 12 Opposition to the Motion to Dismiss on December 29, 2025 [Dk. 8]. 13 II. The Parties’ Positions 14 The parties’ positions in both motions are largely duplicative. 15 a. Plaintiff’s Motion to Deem Complaint Timely 16 In the Motion to Deem Complaint Timely, Plaintiff asserted that although the 17 adversary complaint was not opened under a separate adversary case number until 18 October 28, 2025, the complaint itself was electronically delivered to the Court on 19 October 27, 2025, the Rule 4007(c) deadline, when it was filed on the docket of the 20 main bankruptcy case. Plaintiff characterized the filing error as a ministerial CM/ECF 21 routing mistake resulting from the selection of an incorrect event code and argued that 22 Federal Rule of Bankruptcy Procedure 5005(c) authorizes the Court, in the interest of 23 justice, to deem the complaint filed as of the date it was originally delivered to the Court. 24 Plaintiff emphasized that the complaint filed on October 28, 2025 in the adversary 25 proceeding was identical to the document filed in the main case on October 27, 2025, 26 that the error was promptly corrected after receipt of the Clerk’s Notice of Error, and that 27 Defendant suffered no prejudice because notice of the filing was received through the 28 1 Court’s electronic noticing system. The Motion to Deem the Complaint Timely was 2 never set for hearing by Plaintiff. 3 b. Defendant’s Opposition to the Motion to Deem Complaint Timely 4 On November 14, 2025, Defendant filed an Opposition to the Motion to Deem 5 Complaint Timely. In that opposition, Defendant argued that Rule 5005(c) does not 6 apply where a party fails to comply with the mandatory procedures for commencing an 7 adversary proceeding and that filing a complaint in the main bankruptcy case does not 8 constitute commencement of a nondischargeability action under Federal Rule of 9 Bankruptcy Procedure 4007(c). Defendant further asserted that the Court lacks 10 authority to retroactively deem an adversary proceeding timely once the Rule 4007(c) 11 deadline has expired, that Plaintiff’s arguments improperly seek an extension of the 12 deadline in violation of Federal Rule of Bankruptcy Procedure 9006(b)(3), and that 13 equitable considerations such as intent, diligence, or lack of prejudice are legally 14 irrelevant under controlling Ninth Circuit authority. 15 c. Defendant’s Motion to Dismiss 16 On December 1, 2025, Defendant filed the present Motion. In the Motion, 17 Defendant argues that Rule 4007(c) required Plaintiff to file a nondischargeability 18 complaint no later than October 27, 2025, that Plaintiff failed to commence an adversary 19 proceeding by that date, and that the Court lacks discretion to excuse the late filing. 20 Defendant further argues that filing a complaint in the main bankruptcy case does not 21 satisfy Rule 4007(c), that Rule 5005(c) cannot be used to deem the adversary timely, 22 and that equitable considerations such as intent, lack of prejudice, and CM/ECF issues 23 are legally irrelevant.

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In re: Gerald Trey Costello, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-gerald-trey-costello-cacb-2026.