In Re: Mahvash Mazgani

CourtDistrict Court, C.D. California
DecidedAugust 15, 2025
Docket2:25-cv-02230
StatusUnknown

This text of In Re: Mahvash Mazgani (In Re: Mahvash Mazgani) is published on Counsel Stack Legal Research, covering District 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: Mahvash Mazgani, (C.D. Cal. 2025).

Opinion

8 UNITED STATES DISTRICT COURT

9 CENTRAL DISTRICT OF CALIFORNIA

10 In re Case No. 2:25-cv-02230-WLH 11 MAHVASH MAZGANI, Bankr. Case No. 2:19-bk-21655 12 Debtor. Adversary Case No. 2:20-ap-1637-BR 13 ORDER ON APPEAL 14 15 KEVIN MODA,

16 Appellant,

17 v. Related Cases: 18 MAHVASH MAZGANI, 2:23-cv-08894-WLH 19 Appellee. 2:24-cv-02762-WLH 2:24-cv-01011-WLH 20 2:24-cv-02529-WLH 2:24-cv-03245-WLH 21 2:24-cv-05798-WLH

23 24 Before the Court is the appeal of three related Bankruptcy Court decisions 25 regarding an adversary proceeding: (1) an October 15, 2024, Order Dismissing the 26 Adversary Proceeding (“Dismissal Order”) (Dismissal Order, AP Docket No. 97); (2) a 27 March 5, 2024, Memorandum of Decision Denying Kevin Moda’s Motion for 28 1 Reconsideration of Order Dismissing the Adversary Proceeding (“Memo Denying 2 Reconsideration of Dismissal”) (Memo Denying Reconsideration, AP Docket No. 119); 3 and, (3) an Order Denying Reconsideration from the same date (Order Denying 4 Reconsideration, AP Docket No. 120).1 5 The Court finds this matter appropriate for resolution without oral argument. See 6 Fed. R. Civ. P. 78(b); L.R. 7-15. For the reasons set forth below, the Court AFFIRMS 7 the Bankruptcy Court’s Dismissal Order, Memo Denying Reconsideration of Dismissal 8 and Order Denying Reconsideration. 9 I. BACKGROUND 10 A. General Background 11 The instant appeal stems from the Bankruptcy Court’s dismissal of an adversary 12 proceeding. Because the dismissal “did not occur in a vacuum” (Memo Denying 13 Reconsideration at 1), the Court briefly summarizes other related proceedings and 14 litigation. On October 19, 2019, a creditor of Appellee Mavash Mazgani (“Appellee” 15 or “Debtor”) filed a Chapter 7 Involuntary Petition against Appellee in the Bankruptcy 16 Court. (Id. at 2). At the time of the petition, Appellee and Appellant Kevin Moda 17 (“Appellant” or “Mr. Moda”) were engaged in litigation in the Los Angeles County 18 Superior Court regarding the ownership of two properties. (Id.). On May 12, 2020, 19 the Bankruptcy Court entered an order for relief. (Id.). About two months later, the 20 Bankruptcy Court converted the Bankruptcy Case into a Chapter 11 case. (Id.). 21 On July 16, 2020, Mr. Moda filed a motion for relief from the automatic stay. 22 (Id.). “The motion specified that Moda ‘agree[d] that the stay will remain in effect as 23 to the enforcement of any resulting judgment against the Debtor or bankruptcy estate, 24

25 1 “AP Docket” references are to the docket in the underlying adversary case, 2:20-ap- 1637-BR. “BK Docket” references are to the docket in the related bankruptcy case, 26 2:19-bk-21655. 27

28 1 except that Moda would be able to file a proof of claim and/or adversary proceeding 2 in this Court.” (Id.). The Bankruptcy Court granted the Motion on September 16, 3 2020. (Id.). 4 On October 2, 2020, Mr. Moda filed a cross-complaint in the state court 5 alleging that Appellee defrauded Mr. Moda and mishandled a trust held for Mr. 6 Moda’s benefit. (Id. at 2-3). Mr. Moda filed the adversary proceeding at issue in the 7 instant appeal on the same day. (Id. at 3). 8 On July 7, 2023, the state court awarded Mr. Moda over $30 million in damages 9 as well as the two properties at issue in the case. (Id. at 3). Appellee Mazgani 10 appealed the state court judgment. (Id.). On September 21, 2023, Mr. Moda filed a 11 motion for an “Order Confirming Termination of Stay” in the bankruptcy action. 12 (Id.). Mr. Moda argued that he could enforce the state court judgment regardless of 13 the bankruptcy stay because the judgment had determined that the two properties at 14 issue were excluded from the automatic stay. (Id.). About one month later, the 15 Bankruptcy Court denied the Motion and confirmed that the automatic stay barred 16 enforcement of any judgment in the state court case. (Id.).2 17 Since the Bankruptcy Court confirmed the scope of the automatic stay, Mr. 18 Moda has engaged in a pattern of frivolous and abusive conduct. (Id. at 9-15). Both 19 the Bankruptcy Court and this Court have found that Mr. Moda and his former 20 attorney Vipan Bhola (“Mr. Bhola”) have continually and intentionally violated the 21 automatic stay. (Id. at 3-4 (describing Bankruptcy Court and District Court 22 decisions)). On January 19, 2024, the Bankruptcy Court ordered sanctions against 23 both Mr. Moda and Mr. Bhola for their violations of the automatic stay. (Id. at 9). 24 Mr. Moda and Mr. Bhola failed to pay sanctions by the ordered deadline. (Id. at 9- 25 10). On March 20, 2024, the Bankruptcy Court found both Mr. Moda and Mr. Bhola 26 in contempt of court. (Id. at 10). On the same day, the Bankruptcy Court ordered Mr. 27 2 About eleven months later, this Court affirmed the Bankruptcy Court’s decision. 28 (Id.). 1 Moda to take certain remedial actions related to his violation of the stay. (Id. at 11). 2 Mr. Moda did not complete the remedial actions for nearly five months and did so 3 only after being threatened with incarceration for his continued contempt of court. 4 (Id. at 14). 5 By the time the Bankruptcy Court issued the Dismissal Order at issue on 6 appeal, this Court had concluded that Mr. Moda had attempted to mislead this Court 7 and had wasted the time and resources of both the Court and opposing counsel. (Id. at 8 14-15 (citing this Court’s February 7, 2024, decision in Case No. 23-cv-08894)). By 9 the time the Bankruptcy Court issued the Memo Denying Reconsideration of 10 Dismissal, Mr. Moda had accrued approximately $500,000 of unpaid sanctions against 11 him. (Id. at 14). 12 B. Dismissal Order and Memo and Order Denying Reconsideration of 13 Dismissal 14 While the history the of bankruptcy and related actions is critical to 15 understanding the context for the orders now on appeal, the Court now turns to the 16 specific procedural history which led to the dismissal of Mr. Moda’s adversary 17 proceeding. On January 10, 2024, the Bankruptcy Court set a status conference for 18 March 12, 2024, regarding the state court litigation. (AP Docket No. 69). On 19 February 28, 2024, Mr. Moda filed a Notice of Substitution of Attorney, noting that 20 Appellant would appear pro se in the adversary proceeding, in place of his former 21 counsel, Mr. Bhola. (Substitution of Attorney, AP Docket No. 72). On March 12, 22 2024, Mr. Moda appeared in pro per at the scheduled status conference and the 23 Bankruptcy Court continued the conference to June 4, 2024. (See AP Docket No. 75 24 (continuing status hearing to June 4, 2024); Memo Denying Reconsideration at 5 25 (reflecting that Mr. Moda appeared in pro per)). On May 21, 2025, Appellee filed a 26 status report. (AP Docket No. 76). Mr. Moda did not file a status report. 27 On May 24, 2024, Mr. Bhola (who on that date did not represent Mr. Moda in 28 the adversary proceeding), filed a “Status Conference Report” on the Bankruptcy 1 Docket. (Status Conference Report, BK Docket No. 1123). As the Bankruptcy Court 2 noted, “[t]his document was not actually a report regarding the state court litigation 3 but rather defiant and bizarre statements that [Mr. Moda] was not going to abide by 4 [the Bankruptcy] Court’s orders regarding his violation of the automatic stay.” 5 (Memo Denying Reconsideration at 5 (citing Status Conference Report, BK Docket 6 No. 1123)).3 7 On June 4, 2024, the Bankruptcy Court held the continued status conference. 8 Mr. Moda did not appear for the conference. (Order to Show Cause Why Complaint 9 Should Not Be Dismissed for Plaintiff’s Failure to Attend Status Conference (“OSC re 10 Dismissal”), AP Docket No. 77). Following the hearing, the Bankruptcy Court issued 11 an Order to Show Cause Why Complaint Should Not Be Dismissed for Plaintiff’s 12 Failure to Attend Status Conference (“OSC re Dismissal”). (Id.).

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In Re: Mahvash Mazgani, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-mahvash-mazgani-cacd-2025.