In Re Kerlo

311 B.R. 256, 51 Collier Bankr. Cas. 2d 1702, 2004 Bankr. LEXIS 354, 2004 WL 1430301
CourtUnited States Bankruptcy Court, C.D. California
DecidedMarch 26, 2004
DocketSA 02-18998 JR
StatusPublished
Cited by6 cases

This text of 311 B.R. 256 (In Re Kerlo) 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 Kerlo, 311 B.R. 256, 51 Collier Bankr. Cas. 2d 1702, 2004 Bankr. LEXIS 354, 2004 WL 1430301 (Cal. 2004).

Opinion

MEMORANDUM OPINION

JOHN E. RYAN, Bankruptcy Judge.

I. INTRODUCTION

On November 11, 2002, Lizabetha Kerlo (“Debtor”) filed a chapter 7 1 petition. Debtor listed real property located at 902 South Oak Street, Santa Ana, California (the “Property”) on her schedules. Debtor resides on the Property and also rents the Property to a number of tenants (the “Tenants”). Weneta M.A. Kosmala (“Trustee”) is the chapter 7 trustee.

Trustee obtained two orders (the “Orders”) requiring Debtor to turn over possession of the Property to Trustee. After *260 Debtor failed to comply with the Orders, Trustee moved for a finding of civil contempt, sanctions against Debtor, and a writ of possession and order of ejectment to enforce the Orders (the “Motion”). Debtor opposed the Motion and requested that she be given additional time to refinance the Property and pay her creditors.

At the hearing on February 13, 2004, I found Debtor in contempt. With respect to enforcement of the Orders, I instructed Trustee to submit a supplemental brief addressing available remedies and whether enforcing the Orders implicated possible Fourth Amendment rights of Debtor or the Tenants. Debtor was given five days to respond.

II. JURISDICTION

I have jurisdiction over this matter pursuant to 28 U.S.C. § 157(b)(1). This is a core proceeding as defined in 28 U.S.C. § 157(b)(2)(A) and (E).

III. STATEMENT OF FACTS

Debtor listed the value of the Property on her schedules as $200,000. Trustee determined that the fair market value of the Property was substantially higher and that administering the Property would generate a significant return for the estate. 2 On April 4, 2003, Trustee obtained an order (the “First Order”) requiring Debtor to immediately turn over the Property to Trustee and authorizing Trustee to employ real estate agent Clarence Yoshi-kane to market and sell the Property. However, Debtor and her son were allowed to remain on the Property until further court order. The First Order was served on Debtor.

On July 8, 2003, Trustee obtain an order (the “Second Order”), requiring Debtor to turn over the Property in a vacant condition. The Second Order was to become effective seven days after entry unless Debtor converted her case to chapter 13, in which case it would be stayed pending confirmation and completion of a chapter 13 plan. If Debtor’s case was reconverted to chapter 7, the Second Order would become immediately effective. Again, the Second Order was served on Debtor.

Debtor converted her case to chapter 13 on July 16, 2003. At the plan confirmation hearing, Debtor’s case was reconverted to chapter 7. Debtor did not vacate the Property. Yoshikane attempted to enter the Property on several occasions, but was denied access by Debtor. On February 3, 2004, Trustee served notice on all occupants of the Property, stating that all tenancies and licenses on the Property were terminated and demanding immediate possession. Trustee also posted the notice on the Property.

On February 6, 2004, Trustee moved for a finding of civil contempt, sanctions against Debtor, and a writ of possession and order of ejectment. Trustee also requested that the United States Marshals Service be directed to take all necessary steps to remove all occupants from the Property. Finally, Trustee requested authorization to remove all personal property left on the Property and to place such property in a storage unit that would then be made available to Debtor and the Tenants.

Debtor opposed the Motion, requesting that she be allowed additional time to attempt to refinance the secured debt on the *261 Property. Debtor admitted that she continued to rent rooms on the Property.

At the hearing on February 13, 2004, I found Debtor in contempt for willfully violating the Orders. With respect to sanctions, I instructed Trustee to submit evidence of the fees and costs she incurred as a result of Debtor’s conduct. 3 I also found that a writ of possession was appropriate to enforce the Orders under Federal Rule of Civil Procedure (“FRCP”) 69 and California law.

However, upon further consideration, I instructed Trustee to submit a supplemental brief addressing: (1) remedies available in enforcing the Orders and (2) whether enforcing the Orders implicated any Fourth Amendment rights of Debtor or the Tenants. 4 Trustee submitted a supplemental brief on February 20, 2002. Debt- or did not respond.

IV. DISCUSSION

A. Remedies Available in Enforcing the Orders

Trustee argues that FRCP 69 applies and authorizes the court to employ the remedies available under California law to enforce the Orders. Trustee asserts that a writ of possession is the proper means of enforcing a judgment for possession under California law. Alternatively, Trustee argues that FRCP 70 authorizes the court to issue a writ of possession. Finally, Trustee argues that the court may use its equitable powers to enforce the Orders by a writ of possession and order of ejectment.

FRCP 69 provides in pertinent part:

Process to enforce a judgment for the payment of money shall be a writ of execution, unless the court directs otherwise. The procedure on execution, in proceedings supplementary to and in aid of a judgment, and in proceedings on and in aid of execution shall be in accordance with the practice and procedure of the state in which the district court is held, existing at the time the remedy is sought, except that any statute of the United States governs to the extent that it is applicable.

Fed.R.Civ.P. 69 (applicable in bankruptcy under Fed. R. Bankr.P. 7069). FRCP 69 only applies to judgments for the payment of money. Hamilton v. MacDonald, 503 F.2d 1138, 1148 (9th Cir.1974). Here, the Orders do not involve the payment of money, and therefore FRCP 69 does not apply.

FRCP 70

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Cite This Page — Counsel Stack

Bluebook (online)
311 B.R. 256, 51 Collier Bankr. Cas. 2d 1702, 2004 Bankr. LEXIS 354, 2004 WL 1430301, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-kerlo-cacb-2004.