In re: Rajinder Kumar Jawa and Debra Lynn Jawa

CourtUnited States Bankruptcy Appellate Panel for the Ninth Circuit
DecidedDecember 4, 2015
DocketCC-15-1077-KuKiTa
StatusUnpublished

This text of In re: Rajinder Kumar Jawa and Debra Lynn Jawa (In re: Rajinder Kumar Jawa and Debra Lynn Jawa) is published on Counsel Stack Legal Research, covering United States Bankruptcy Appellate Panel for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re: Rajinder Kumar Jawa and Debra Lynn Jawa, (bap9 2015).

Opinion

FILED DEC 04 2015 1 NOT FOR PUBLICATION SUSAN M. SPRAUL, CLERK 2 U.S. BKCY. APP. PANEL OF THE NINTH CIRCUIT

3 UNITED STATES BANKRUPTCY APPELLATE PANEL 4 OF THE NINTH CIRCUIT 5 In re: ) BAP No. CC-15-1077-KuKiTa ) 6 RAJINDER KUMAR JAWA and DEBRA ) Bk. No. 13-25539 LYNN JAWA, ) 7 ) Debtors. ) 8 ______________________________) ) 9 SPICE 4 LIFE, ) ) 10 Appellant, ) ) 11 v. ) MEMORANDUM* ) 12 JASON M. RUND, Chapter 7 ) Trustee, ) 13 ) Appellee, ) 14 ______________________________) 15 Argued and Submitted on November 19, 2015 at Pasadena, California 16 Filed – December 4, 2015 17 Appeal from the United States Bankruptcy Court 18 for the Central District of California 19 Honorable Ernest M. Robles, Bankruptcy Judge, Presiding 20 21 Appearances: Dennis Winters argued for appellant Spice 4 Life; Thomas H. Casey argued for appellee Jason M. Rund, 22 chapter 7 trustee. 23 Before: KURTZ, KIRSCHER and TAYLOR, Bankruptcy Judges. 24 25 26 * This disposition is not appropriate for publication. 27 Although it may be cited for whatever persuasive value it may have (see Fed. R. App. P. 32.1), it has no precedential value. 28 See 9th Cir. BAP Rule 8024-1. 1 INTRODUCTION 2 In February 2014, the bankruptcy court granted the motion of 3 chapter 71 trustee Jason Rund to revoke the debtors’ living 4 trust. Just under a year later, in February 2015, Spice 4 Life 5 filed a motion pursuant to Rule 9024 and Civil Rule 60(b) seeking 6 relief from the trust revocation order. The bankruptcy court 7 denied Spice 4 Life’s motion for relief, and Spice 4 Life 8 appealed. 9 Even if we were to reverse the order denying Spice 4 Life’s 10 motion for relief, as a matter of equity, we cannot provide 11 Spice 4 Life with any effective or meaningful relief. 12 Accordingly, we DISMISS this appeal as moot. Alternately, even 13 if we were to reach the merits of this appeal, we would AFFIRM 14 because the facts in the record do not justify any relief under 15 Civil Rule 60(b). 16 FACTS 17 The controversy underlying this appeal has its roots in a 18 trust transfer deed executed, notarized and recorded in June 19 2012. On its face, the deed transferred legal title to 20 commercial real property located in Los Feliz, California from 21 Spice 4 Life to the debtors’ living trust. Based on this deed, 22 Rund filed a motion in the debtors’ bankruptcy case seeking to 23 revoke the debtors’ living trust. In his revocation motion, Rund 24 explicitly stated that he sought to revoke the trust in order to 25 1 26 Unless specified otherwise, all chapter and section references are to the Bankruptcy Code, 11 U.S.C. §§ 101-1532, and 27 all "Rule" references are to the Federal Rules of Bankruptcy Procedure, Rules 1001-9037. All “Civil Rule” references are to 28 the Federal Rules of Civil Procedure.

2 1 “obtain clear title to the Los Feliz Property” so that he “could 2 market it for sale” on behalf of the debtors’ chapter 7 3 bankruptcy estate. Rund also explicitly requested in the motion 4 that the court enter an order “confirming the assets of the 5 Debtors’ Trust are property of the bankruptcy estate.” 6 Rund did not serve a copy of the trust revocation motion on 7 Spice 4 Life, but he did serve Spice 4 Life at three different 8 addresses with a copy of his notice of motion. Spice 4 Life has 9 not disputed its receipt of this notice. In the summary on the 10 first page of the notice, Rund identified the Los Feliz property 11 by street address and asserted that the debtors’ trust held title 12 to that property. The summary further stated: “Granting this 13 Motion is in the best interests of the estate because upon the 14 revocation of the Debtors' Trust, the Bankruptcy Trustee can 15 obtain clear title to the Los Feliz Property in order to market 16 it for sale.” Notice of Motion (Nov. 26, 2013) at p. 1. 17 Immediately following the summary, the notice provides a 18 detailed account of the contents and claimed legal effect of the 19 June 2012 trust transfer deed. Among other things, the notice 20 stated that, on June 6, 2012, “the Trust Transfer Deed was 21 executed and recorded with the Los Angeles County Recorder's 22 Office, which transferred title to the Los Feliz Property from 23 Rajinder Kumar Jawa and Spice 4, Life, Inc. to the ‘Kumar Jawa 24 Revocable Living Trust Agreement as a Trustee.’” Id. In the two 25 last paragraphs of the notice, Rund advised interested parties 26 that they could obtain a copy of the trust revocation motion by 27 making a written request to Rund’s counsel of record and that any 28 party wishing to contest the motion needed to timely file a

3 1 response at least fourteen days before the January 13, 2014 2 scheduled hearing date or any objection to the motion they might 3 have “shall be deemed waived.” 4 The hearing on the trust revocation motion was twice 5 continued, once from January 13, 2014 to January 15, 2014 and the 6 second time from January 15, 2014 to February 5, 2014.2 As a 7 result, interested parties were given over two months advance 8 notice of the hearing and were given over forty-five days to file 9 an opposition to the motion. Spice 4 Life never filed any 10 response to the motion. 11 After holding a hearing on the unopposed trust revocation 12 motion, the bankruptcy court entered its trust revocation order. 13 As originally requested in the trust revocation motion, the order 14 explicitly stated that the Los Feliz property was property of the 15 estate.3 16 Roughly six months elapsed before Rund filed his motion to 17 sell the Los Feliz property. Only then did Spice 4 Life file an 18 opposition arguing that the trust transfer deed was invalid and 19 that it owned the Los Feliz property. The parties filed lengthy 20 papers, including declarations and documentary evidence, in 21 support of their respective positions regarding Spice 4 Life’s 22 claimed ownership of the Los Feliz property. 23 24 2 The filings reflecting the continuance of this hearing were not included in the parties’ excerpts of record, but we can and 25 do take judicial notice of the documents attached to the 26 bankruptcy court’s electronic docket in the underlying bankruptcy case. See O'Rourke v. Seaboard Sur. Co. (In re E.R. Fegert, 27 Inc.), 887 F.2d 955, 957–58 (9th Cir. 1989). 28 3 The trust revocation order was not served on Spice 4 Life.

4 1 After holding a hearing, the bankruptcy court entered its 2 order granting Rund’s sale motion on September 30, 2014. In 3 granting the sale motion, the bankruptcy court rejected Spice 4 4 Life’s ownership claim on two alternate grounds. First and 5 foremost, the bankruptcy court held that Spice 4 Life had 6 forfeited its ownership claim by doing nothing to assert that 7 claim in response to Rund’s trust revocation motion. According 8 to the court, in conjunction with the trust revocation motion, 9 Spice 4 Life had ample notice of Rund’s position: (1) that the 10 Los Feliz Property was owned by the debtors’ trust at the time of 11 their bankruptcy filing; and (2) that the Los Feliz property 12 would become property of the debtors’ bankruptcy estate if the 13 court granted the trust revocation motion. The bankruptcy court 14 therefore concluded that, to the extent Spice 4 Life contended 15 that it owned the Los Feliz property, Spice 4 Life should have 16 opposed the trust revocation motion.

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Bluebook (online)
In re: Rajinder Kumar Jawa and Debra Lynn Jawa, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-rajinder-kumar-jawa-and-debra-lynn-jawa-bap9-2015.