In re: Lenore LuAnn Albert-Sheridan v. Maricruz Farfan, et al.

United States Bankruptcy Court, C.D. California·Decided October 30, 2025·No. 8:18-ap-01065·Unknown

Opinion

FOR PUBLICATION 2 FILED & ENTERED 3 4 OCT 30 2025 5 CLERK U.S. BANKRUPTCY COURT 6 BY bolte DEPUTY CLERK T 9 CENTRAL DISTRICT OF CALIFORNIA - SANTA ANA DIVISION 10 In re: CHAPTER 7 11 _ Case No.: 8:18-bk-10548-SC 42 Lenore LuAnn Albert-Sheridan, Adv No: 8:18-ap-01065-SC 13 ORDER ON REMAND FOLLOWING BAP DECISION REGARDING CALIFORNIA 14 Debtor(s)) CONSTITUTIONAL CLAIMS 15 Lenore LuAnn Albert-Sheridan, 16 47 Plaintiff(s), Vv. 18 Maricruz Farfan, et al., 19 Defendant(s). 20 21 22 The Court has considered the decision of the Bankruptcy Appellate Panel 93 || (/BAP") issued April 2, 2024,' which, inter alia, reversed this Court’s prior dismissal of 24 || Debtor's claim under the California Constitution and remanded for further proceedings.” 25 26 ||‘ The decision was entered on the docket in this case on April 4, 2024, as Docket 571. 2 The BAP held that the Court, in its Order entered June 29, 2021 [Dk. 174], erred in dismissing Albert's 27 || claim under the California Constitution and erred in dismissing Albert's claim that the State Bar violated the automatic stay by suspending Albert’s law license during two discrete periods: (1) from the end of the 28 || minimum suspension under the California Supreme Court's 2017 Suspension Order on March 16, 2018 to June 1, 2018; and (2) from the conversion of Albert’s bankruptcy case to Chapter 7 on June 26, 2018 to the entry of discharge on February 26, 2019 [Adv. Dk. 571] (“2024 BAP Decision’).

1 || In the 2024 BAP Decision, the BAP concluded that this Court possesses “related to” 2 || jurisdiction under 28 U.S.C. § 1334(b) because the outcome of the state constitutional 3 || excessive-fines claim could conceivably affect Debtor’s nondischargeable obligations 4 || and her ability to resume the practice of law. The BAP did not, however, resolve 5 || whether this Court may properly adjudicate the constitutional claim in light of limitations 6 federal review of state court decisions. Instead, the BAP expressly directed the Court 7 remand to evaluate: (1) whether the Court may or must decline to decide the claim 8 || under jurisdictional doctrines other than subject matter jurisdiction; (2) whether issue 9 || preclusion or claim preclusion stemming from the California Supreme Court's 2017 10 || Suspension Order and 2019 Suspension Order bars the claim in whole or in part; and 11 whether the Rooker-Feldman doctrine prohibits a bankruptcy court from reviewing or 12 || modifying final attorney-disciplinary judgments issued by the California Supreme Court. 13 || Thus, the mandate requires the Court to resolve each of these threshold questions 14 || before considering the substantive merits of Debtor's state constitutional theories. 15 Having reviewed the dockets as a whole, and as set forth below, the Court 16 || determines that each independent doctrine — Rooker-Feldman, preclusion, and 17 || abstention — compels dismissal of the constitutional claim without reaching its merits. 18 I. Background4 19 Several years before Debtor and Plaintiff Lenore Albert-Sheridan (hereinafter 20 || “Albert”) filed for bankruptcy, the State Bar of California (“State Bar’) initiated an 21 22 Specifically, the BAP stated: “We agree that Albert’s constitutional claims do not ‘arise under’ the Bankruptcy Code; rather, they arise under applicable constitutional provisions. We also agree that those 23 || claims did not ‘arise in’ her bankruptcy case, because the same claims could arise in a non-bankruptcy setting. But Albert’s claims were ‘related to’ her bankruptcy case because they affected the amount of 24 Albert’s nondischargeable obligations and thus ‘could alter [her] rights, liabilities, options or freedom of 25 action (either positively or negatively)....’ [citation omitted]. The bankruptcy court has subject matter jurisdiction to determine the amount of any claim against the debtor, whether that claim is or is not 26 discharged.” [Dk. 571, pg. 45]. 4 This adversary has been pending since 2018. The underlying facts pertaining to Albert’s dispute with the 27 State Bar have been extensively litigated and are well-documented both in this adversary, as well as in the main case, including in the 2024 BAP Decision, and this Court’s Order Granting the State Bar’s 28 || Motion for Summary Judgment, entered June 21, 2022 [Dk. 391]. The Court adopts those factual recitations in full, as though fully set forth herein, and are not generally repeated for purposes of brevity, except where necessary.

1 investigation and commenced disciplinary proceedings against Albert, who was then a 2 || licensed attorney. See First Amended Complaint (“FAC”) [Dk. 85] at 5:13-19. As a result 3 || of those proceedings, the California Supreme Court issued a disciplinary order dated 4 ||December 2017 (“2017 Suspension Order’), which suspended Albert’s license to 5 || practice law for 30 days and conditioned reinstatement upon her payment of discovery 6 sanctions and disciplinary costs. /d. at 5:24-27. 7 Albert filed a Chapter 13 petition on February 20, 2018. /d. at 6:3-4. The case 8 || was converted to Chapter 7 on June 26, 2018. /d. at 6:22; Conversion Order, Case No. 9 || 8:18-bk-10548-ES [Dk. 198]. 10 On April 6, 2018, Albert commenced this adversary proceeding by filing a 11 || complaint against the State Bar and several of its employees asserting five causes of 12 || action: (1) nondischargeability under 11 U.S.C. § 523(a)(7); (2) violation of 11 U.S.C. § 13 || 525(a); (3) violation of 42 U.S.C. § 1983; (4) violation of the Rosenthal Fair Debt 14 || Collection Practices Act and the federal Fair Debt Collection Practices Act; and (5) a 15 || declaration that California Business and Professions Code §§ 6103, 6086.10, and 16 ||6140.7 are unconstitutional. See generally Original Complaint [Dk. 1]. After notice and a 17 hearing, this Court dismissed the complaint, concluding that certain discovery sanctions 18 || and costs at issue were nondischargeable and that the remaining claims depended 19 || upon the premise that the entire amount was dischargeable. See Order Granting Motion 20 || to Dismiss (entered Aug. 9, 2018) [Dk. 48]. The Bankruptcy Appellate Panel affirmed. 21 || See B.A.P. Judgment (entered Apr. 26, 2019) [Dk. 69]. On further appeal, the Ninth 22 || Circuit affirmed in part, reversing only as to the determination that the discovery 23 || sanctions were dischargeable under § 523(a)(7). See Ninth Circuit Mandate (entered 24 || Jan. 28, 2021) [Dk. 74]. 25 Albert was again suspended in July 2019, when the California Supreme Court 26 ||issued a second disciplinary order against her (“2019 Suspension Order’”).° 27 28 5 Albert was subsequently disbarred.

1 On June 4, 2020, Albert filed a second adversary complaint against the State Bar 2 two employees. See Adv. No. 20-ap-01095-SC [Dk. 1]. On April 14, 2021, the 3 || parties stipulated to consolidate the adversary proceedings and to permit Albert to file a 4 || consolidated amended complaint. See Stipulation to Consolidate [Dk. 76]. The Court 5 || approved the stipulation on April 20, 2021 [Dk. 78], and the cases were consolidated. 6 On April 28, 2021, Albert filed the operative First Amended Complaint (“FAC”) 7 || [Dk. 85].

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In re: Lenore LuAnn Albert-Sheridan v. Maricruz Farfan, et al., (Cal. 2025).

In re: Lenore LuAnn Albert-Sheridan v. Maricruz Farfan, et al. (In re: Lenore LuAnn Albert-Sheridan v. Maricruz Farfan, et al.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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