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

CourtUnited States Bankruptcy Court, C.D. California
DecidedOctober 30, 2025
Docket8:18-ap-01065
StatusUnknown

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

Opinion

FOR PUBLICATION 2 FILED & ENTERED 3 4 OCT 30 2025 5 CLERK U.S. BANKRUPTCY COURT 6 BY bolte DEPUTY CLERK T 8 UNITED STATES BANKRUPTCY COURT 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., Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-lenore-luann-albert-sheridan-v-maricruz-farfan-et-al-cacb-2025.