In re Lisse

565 B.R. 903, 2017 Bankr. LEXIS 604
CourtUnited States Bankruptcy Court, W.D. Wisconsin
DecidedMarch 6, 2017
DocketCase Number: 16-12556-13
StatusPublished
Cited by2 cases

This text of 565 B.R. 903 (In re Lisse) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, W.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Lisse, 565 B.R. 903, 2017 Bankr. LEXIS 604 (Wis. 2017).

Opinion

DECISION

Catherine J. Furay, U.S. Bankruptcy Judge

Statement of Procedural History

The procedural history of this case and the disputes presented are extensive and set the stage for this decision.

The Debtor, Sondra Lisse, and her husband, Steven Lisse, are the makers of a note and the mortgagors of a mortgage related to certain real property located in Dane County, Wisconsin. HSBC Bank USA, National Association, for the benefit of ACE Securities Corp. Home Equity Loan Trust, Series 2006-NC3, Asset Backed Pass-Through Certificates (“HSBC”), filed a foreclosure action regarding that property in Dane County Circuit Court. Sondra Lisse and her husband are the defendants in that action. Mr. and Mrs. Lisse (collectively the “Lisses”) filed [906]*906an answer and affirmative defenses to the complaint. The Lisses sought production and inspection of the original note in that action and, on April 28, 2014, HSBC presented the note for inspection. In May 2014, HSBC moved for summary judgment. The Lisses responded in August 2014. The circuit court granted summary judgment in favor of HSBC on September 14, 2014.

The Lisses appealed the summary judgment decision. Additionally, they filed a motion with the circuit court for reconsideration and stay pending appeal. The circuit court heard and denied the motion.

The Wisconsin Court of Appeals affirmed the circuit court judgment on February 4, 2016. On March 21, 2016, Mr. Lisse filed a Chapter 13, The state court of appeals was notified of the filing and thus assumed there was a stay of proceedings (including a stay of the time to file a petition for review). On August 26, 2016, Mr. Lisse’s bankruptcy case was dismissed. The time to pursue petitions for review in the Wisconsin Supreme Court were tolled and stayed, first based on the filing of Mr. Lisse’s bankruptcy and then by the filing of this case on July 23, 2016.

On August 22, 2016, the Debtor filed a Chapter 13 Plan. On September 6, 2016, HSBC objected. The Chapter 13 Trustee also recommended against confirmation. On September 30, 2016, the Debtor filed a 1,380-page response to HSBC’s Plan objection. On October 3, 2016, the Court held a preliminary telephonic hearing on the Chapter 13 Plan. At that hearing, the Court adjourned the confirmation hearing to November 21, 2016, and permitted discovery.

The Debtor was to serve her discovery requests by October 25, 2016. The Debtor apparently did so and under the Rules responses were due 30 days after service. HSBC requested an extension of time to respond. Debtor’s counsel asked for a date by which responses could be made and then indicated “conditions” for extension would follow. HSBC requested a two-week extension. On November 23, counsel for the Debtor responded that with regard to the requests to admit, the time for objections would not be extended, and that if an extension were granted as to interrogatories, responses “to each Interrogatory ... without objection” would be required. Finally, counsel stated time “will not be extended for objections to Requests for Production” while conceding additional time might be needed to gather documents. Counsel for the Debtor then stated five additional conditions for any extension. HSBC served responses to the requests for admission and document production that were dated November 25, 2016.

On December 2, 2016, HSBC moved to dismiss the Debtor’s case and also filed a motion for relief from stay. On December 7, 2016, the Debtor filed a motion (1) for sanctions against HSBC under Fed. R. Bankr. P. 7037, (2) in the alternative, to determine the sufficiency of responses to the requests for admission and to compel responses to the interrogatories, (3) to compel production of documents, and (4) for Debtor’s attorney’s fees and costs (the “Debtor’s Motion”). And on December 13, 2016, the Debtor filed her voluminous objections to HSBC’s motion to dismiss and motion for relief from stay. On December 19, 2016, the Court held a preliminary hearing on HSBC’s motion for relief from stay and set dates for HSBC to file its response to the Debtor’s Motion (December 23, 2016) and for the Debtor’s reply, if any (December 30, 2016). The Court informed the Parties that after it issued its decision on the Debtor’s Motion, it would then set a telephonic hearing on HSBC’s motion for relief, HSBC’s motion to dismiss, Debtor’s objection to HSBC’s claim, [907]*907and the status of the Debtor’s Plan. HSBC filed its response on December 22. On the same day, it filed a motion for protective order.

Through the Court’s excavation of the tidal wave of paper, the Debtor did attach a signed copy of HSBC’s responses to her requests to admit and requests for production. ECF No. 59, pp. 821-846. Digging through this pile of paper discloses that much of the Debtor’s filings are duplicative.

Despite the dates set by the Court, the Debtor filed a “Compel Supplement” of 202 pages on January 10, 2017, and what purports to be a Declaration Certification under Rule 7037. On January 31, 2017, HSBC moved to strike the supplement. The motion to strike was denied by the Court for the reason stated in a separate order.

Statement of Facts

This Chapter 13 case began as any other until HSBC filed an objection to the Debt- or’s Chapter 13 Plan. Thereafter, the Debtor has buried the Court and HSBC in an avalanche of paperwork. Aside from the 1,380-page response to HSBC’s Plan objection, the Debtor has filed an 860-page motion for sanctions under Rule 7037, a 223-page objection to HSBC’s claim no. 3, a 223-page consolidated supplemental objection to HSBC’s claim no. 3 and response to the HSBC motions, a 223-page objection to HSBC’s motion to dismiss, and a 54-page objection to HSBC’s motion for relief from stay.

The Debtor’s discovery requests include 50 requests for admission, interrogatories that seem to number 12 but which actually total 36 taking into account the interrogatories’ subparts, and 67 document requests. HSBC explains that on November 23, 2016, it was clear it would not be able to furnish Debtor’s counsel with all of its intended responses to her discovery requests. ECF No. 73, p. 2. HSBC then reached out to Debtor’s counsel to request an extension of the discovery deadline “in an attempt to meet and confer in good faith pursuant to FRCP 26(f).” Debtor’s counsel responded with an ultimatum indicating that to secure an extension, HSBC would have to waive all objections. Id.

The November 25, 2016, HSBC discovery response was subject to supplementation. It included objection to any discovery request related to its standing to enforce the note, HSBC further stated it did not include responses to the Debtor’s interrogatories, and it intended to provide them by December 26, 2016, as the information became available. ECF No. 73, p. 3. It appears Debtor’s counsel received HSBC’s responses to the interrogatories on January 6, 2017. ECF No. 82, p. 1. A supplemental response to request to admit no. 31 and to interrogatories was served on January 31, 2017.

The cause for this paper landslide relates to how and to whom the Debtor proposes payment of her note and mortgage through her Chapter 13 Plan. The Plan at paragraph 3 lists “NONE” as secured claims for valuation or surrender.

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Cite This Page — Counsel Stack

Bluebook (online)
565 B.R. 903, 2017 Bankr. LEXIS 604, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-lisse-wiwb-2017.