In Re Hake

387 B.R. 514, 2008 Bankr. LEXIS 1419, 2008 WL 2037466
CourtUnited States Bankruptcy Court, N.D. Ohio
DecidedMay 6, 2008
Docket19-50078
StatusPublished
Cited by2 cases

This text of 387 B.R. 514 (In Re Hake) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Hake, 387 B.R. 514, 2008 Bankr. LEXIS 1419, 2008 WL 2037466 (Ohio 2008).

Opinion

MEMORANDUM OPINION REGARDING (I) ORDER TO SHOW CAUSE CONCERNING REVOCATION OF PRO HAC VICE ADMISSION OF F. DEAN ARMSTRONG AND (II) MOTION TO WITHDRAW SHOW CAUSE ORDER AS MOOT AND ALTERNATIVE MOTION TO RE-CUSE

KAY WOODS, Bankruptcy Judge.

On November 2, 2005, Victor Buente (“Mr. Buente”), on behalf of Buckeye Retirement Co., L.L.C., Ltd. (“Buckeye”), filed Motion for Admission of F. Dean Armstrong Pro Hac Vice and Notice (“Motion”). On November 16, 2005, this Court granted the Motion and entered Order on Motion for Admission Pro Hac Vice of F. Dean Armstrong (“Admission Order”). On April 10, 2008, this Court entered Order to Appear and Show Cause Why Admission Pro Hac Vice of F. Dean Arm *516 strong Should Not Be Revoked (“Show Cause Order”). On April 23, 2008, Buckeye and its lead counsel, F. Dean Armstrong (“Mr. Armstrong”) filed Motion to Withdraw Show Cause Order as Moot and Alternative Motion to Recuse (“Motion to Withdraw/Recuse”).

/. SHOW CAUSE HEARING

The Court held a hearing on the Show Cause Order on April 29, 2008 (“Hearing”), at which Mr. Armstrong appeared. Mr. Buente appeared as counsel for Mr. Armstrong.

The sole issue before the Court was whether Mr. Armstrong’s pro hac vice status should be revoked. The Court expressly stated that it was not seeking to hold Mr. Armstrong in contempt. In addition to the matters set forth in the Show Cause Order, this Court noted that Mr. Armstrong had flagrantly violated this Court’s October 26, 2007, pre-trial order concerning exclusion of Mary Ann Hake as a witness at the Discharge Adversary Proceeding (“Exclusion Order”).

Mr. Armstrong argued that the Court’s Show Cause Order was moot because he stipulated that his pro hac vice application was voluntarily withdrawn. As set forth at the Hearing (and below), the Court rejects this argument as without merit.

Mr. Armstrong took the witness stand and answered questions propounded by Mr. Buente. Mr. Armstrong’s defense to the Show Cause Order consisted primarily of stating that: (i) he respected this Court and all courts, and (ii) he never intended to be disrespectful, obstreperous, or to delay any proceeding. He also stated that he never violated or intended to violate an order of this Court.

In answer to whether he had ever argued with this Court, Mr. Armstrong stated that he only engaged in zealous advocacy. Mr. Armstrong stated that: (i) he and the Court had a difference of opinion as to where the advocacy line should be drawn, and (ii) the differences between the Court and him were because of the way in which he advocated for his client. In Mr. Armstrong’s opinion, he was never disrespectful to the Court, but only engaged in spirited discussions with the Court.

Mr. Armstrong admitted that he had rolled his eyes at the Court, but asserted that such conduct had been a “reflexive” action. He further stated that he had apologized to the Court for that action. Mr. Armstrong stated that he had never intended to be disruptive in Court and that he had only once “leaned over from counsel table” to try to get the attention of John O’Keefe (“Mr. O’Keefe”), co-counsel for Buckeye, when Mr. O’Keefe was making an offer of proof regarding Mrs. Hake’s testimony.

Maintaining that he not only never intended to violate an order of this Court, Mr. Armstrong argued that, in fact, he did not violate this Court’s Exclusion Order. Mr. Armstrong stated that he did not learn of the Exclusion Order until two days before trial began and that steps had already been set in motion to serve a subpoena on Mrs. Hake prior to issuance of the Exclusion Order. According to Mr. Armstrong, he informed Buckeye on the first day of trial about the Exclusion Order, but his client had already contacted a member of the U.S. Marshall’s Service to serve Mrs. Hake with a subpoena. Mr. Armstrong maintained that he did not violate the Court’s Exclusion Order because: (i) no subpoena was ever served on Mrs. Hake, and (ii) the Court’s Order did not prohibit the issuance of a subpoena on Mrs. Hake. While maintaining that the issue was academic because no subpoena was ever issued, Mr. Armstrong argued that he reasonably interpreted the Court’s *517 Exclusion Order as permitting Buckeye to subpoena Mrs. Hake to testify about issues that did not implicate the spousal communication privilege.

As the Court pointed out at the Hearing, Mr. Armstrong’s self-serving testimony did not comport with what actually occurred and constituted a significantly revised version of the facts.

II. MOTION TO WITHDRAW SHOW CAUSE ORDER AS MOOT AND ALTERNATIVE MOTION TO RECUSE

The essence of the Motion to Withdraw/Recuse is that: (i) Buckeye hired Mr. Armstrong for the primary purpose of trying the adversary proceeding in which Buckeye sought denial of the discharge (“Discharge Adversary Proceeding”) of Debtors Randall J. Hake and Mary Ann Hake (collectively, “Debtors”); 1 (ii) since the Discharge Adversary Proceeding is now complete and Debtors have been denied discharge, “there is no need for Mr. Armstrong to maintain his pro hac vice status in either the main bankruptcy case or the Discharge Adversary Proceeding”; (iii) Buckeye will have other counsel, Mr. O’Keefe and Mr. Buente, handle “all remaining matters in the Hake bankruptcy”; and (iv) Buckeye and Mr. Armstrong stipulate to the withdrawal of Mr. Armstrong’s pro hac vice status in both the main bankruptcy case and the Discharge Adversary Proceeding. These facts and arguments, however, do not render the Show Cause Order moot.

On February 4, 2008, Elm Road Development Co. and other plaintiffs filed an adversary proceeding against Mark Gleason, Chapter 7 Trustee (“Trustee”), and other defendants, including Buckeye (Adv. Pro. No. 08-4020) (“Elm Road Adversary Proceeding”). On March 24, 2008, Trustee and Buckeye filed Joint Motion to Dismiss Pursuant to Fed.R.Civ.P. 12(b)(6), which was signed on behalf of Buckeye by Mr. O’Keefe, Mr. Buente, and Mr. Armstrong. 2 On April 3, 2008, Trustee and Buckeye filed Reply to Plaintiffs [ sic] Response to Joint Brief in Support of Joint Motion to Dismiss Pursuant to Fed.R.Civ.P. 12(b)(6), *518 which was also signed on behalf of Buckeye by Messrs O’Keefe, Buente, and Armstrong. The Motion to Withdraw/Recuse makes no mention of Mr. Armstrong’s withdrawal of admission pro hac vice in the Elm Road Adversary Proceeding. Indeed, the Motion states that Buckeye and Mr. Armstrong “stipulate and agree to the withdrawal of Mr. Armstrong’s pro hac vice status for both the main bankruptcy case and the Discharge Adversary Proceeding” only. The Motion is conspicuously silent about the Elm Road Adversary Proceeding.

At the Hearing, Mr. Armstrong stated that his willingness to “withdraw” his pro hac vice status covered all proceedings in Debtors’ bankruptcy case, including the Elm Road Adversary Proceeding. As a consequence, Mr. Armstrong argued that such “withdrawal” mooted the Court’s Show Cause Order.

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Related

In Re Hake
398 B.R. 892 (Sixth Circuit, 2008)
In re: Randall J. Hake v.
Sixth Circuit, 2008

Cite This Page — Counsel Stack

Bluebook (online)
387 B.R. 514, 2008 Bankr. LEXIS 1419, 2008 WL 2037466, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-hake-ohnb-2008.