In re: Randall J. Hake v.

CourtBankruptcy Appellate Panel of the Sixth Circuit
DecidedDecember 22, 2008
Docket08-8039
StatusPublished

This text of In re: Randall J. Hake v. (In re: Randall J. Hake v.) is published on Counsel Stack Legal Research, covering Bankruptcy Appellate Panel of the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re: Randall J. Hake v., (bap6 2008).

Opinion

ELECTRONIC CITATION: 2008 FED App. 0022P (6th Cir.) File Name: 08b0022p.06

BANKRUPTCY APPELLATE PANEL OF THE SIXTH CIRCUIT

In re: RANDALL J. HAKE and ) MARY ANN HAKE, ) ) No. 08-8039 Debtors. ) _____________________________________ )

Appeal from the United States Bankruptcy Court for the Northern District of Ohio, Eastern Division. Bankruptcy Case No. 04-41352.

Submitted: November 19, 2008

Decided and Filed: December 22, 2008

Before: FULTON, PARSONS, and STOSBERG, Bankruptcy Appellate Panel Judges.

____________________

COUNSEL

ON BRIEF: F. Dean Armstrong, Flossmoor, Illinois, Victor O. Buente, Jr., Newton Falls, Ohio, for Appellants. ____________________

OPINION ____________________

DAVID T. STOSBERG, Bankruptcy Appellate Panel Judge. Buckeye Retirement Co., L.L.C., Ltd. (“Buckeye”) and its counsel, F. Dean Armstrong (“Armstrong”), appeal an order of the bankruptcy court denying their motion to withdraw the court's order to appear and show cause why the admission pro hac vice of Armstrong should not be revoked as moot, or in the alternative motion to recuse, and revoking the admission pro hac vice of Armstrong. For the following reasons, the order of the bankruptcy court is AFFIRMED. I. ISSUES ON APPEAL

Whether the bankruptcy court erred when it: (1) determined that its order to show cause why the admission pro hac vice of Armstrong should not be revoked was not moot; (2) refused to recuse itself; and (3) revoked the pro hac vice admission of Armstrong.

II. JURISDICTION AND STANDARD OF REVIEW

The Bankruptcy Appellate Panel of the Sixth Circuit has jurisdiction to decide this appeal. The United States District Court for the Northern District of Ohio has authorized appeals to the Panel, and the Appellants have not timely elected to have this appeal heard by the district court. 28 U.S.C. §§ 158(b)(6), (c)(1). A final order of the bankruptcy court may be appealed as of right pursuant to 28 U.S.C. § 158(a)(1). An order that disposes of discrete disputes within a larger case may be appealed immediately. Lindsey v. O'Brien, Tanski, Tanzer & Young Health Care Providers of Conn. (In re Dow Corning Corp.), 86 F.3d 482, 488 (6th Cir. 1996). The bankruptcy court’s order revoking Armstrong’s pro hac vice admission is a final, appealable order. Johnson v. Trueblood, 629 F.2d 302, 303 (3d Cir. 1980).

The bankruptcy court’s order denying the motion to withdraw the court’s order to appear and show cause why Armstrong’s pro hac vice admission should not be revoked as moot is a final appealable order reviewed de novo. In re DSC, Ltd., 486 F.3d 940, 944 (6th Cir. 2007). “Under a de novo standard of review, the reviewing court decides an issue independently of, and without deference to, the trial court's determination.” Menninger v. Accredited Home Lenders (In re Morgeson), 371 B.R. 798, 800 (B.A.P. 6th Cir. 2007). The bankruptcy court’s denial of a recusal request is reviewed for abuse of discretion. Schilling v. Heavrin (In re Triple S Rests., Inc.), 422 F.3d 405, 418 (6th Cir. 2005). Likewise, the bankruptcy court’s decision to revoke an attorney’s pro hac vice admission is reviewed for abuse of discretion. D.H. Overmyer, Co., Inc. v. Robson, 750 F.2d 31, 34 (6th Cir. 1984). “An abuse of discretion occurs only when the [trial] court relies upon clearly erroneous findings of fact or when it improperly applies the law or uses an erroneous legal standard.” Volvo Commercial Fin. LLC the Americas v. Gasel Transp. Lines, Inc. (In re Gasel Transp. Lines, Inc.), 326 B.R. 683, 685 (B.A.P. 6th Cir. 2005) (citing Schmidt v. Boggs (In re Boggs), 246 B.R. 265, 267 (B.A.P. 6th Cir. 2000)). A court also abuses its discretion if, upon review, the appellate court is left with a “definite and firm conviction that the [bankruptcy court]

-2- committed a clear error of judgment.” Barlow v. M.J. Waterman & Assocs., Inc. (In re M.J. Waterman & Assocs., Inc.), 227 F.3d 604, 607-08 (6th Cir. 2000) (quoting Soberay Mach. & Equip. Co. v. MRF Ltd., Inc., 181 F.3d 759, 770 (6th Cir. 1999)). “The question is not how the reviewing court would have ruled, but rather whether a reasonable person could agree with the bankruptcy court’s decision; if reasonable persons could differ as to the issue, then there is no abuse of discretion.” Mayor and City Council of Baltimore, Md. v. W. Va. (In re Eagle-Picher Indus., Inc.), 285 F.3d 522, 529 (6th Cir. 2002).

III. FACTS

On March 25, 2004, Randall J. Hake (“Mr. Hake”) and Mary Ann Hake (“Mrs. Hake”) (collectively “Debtors”) filed a petition for relief under the Bankruptcy Code. On November 2, 2005, Buckeye filed a motion for admission of Armstrong pro hac vice. On November 16, 2005, the bankruptcy court granted the Motion and entered an Order on Motion for Admission Pro Hac Vice of F. Dean Armstrong (the “Admission Order”).

On August 21, 2006, Buckeye filed an adversary proceeding objecting to the Debtors’ discharge pursuant to 11 U.S.C. § 727 (the “Discharge Adversary Proceeding”). After Mrs. Hake failed to comply with a discovery order, the bankruptcy court entered an order on October 26, 2007, denying Mrs. Hake’s discharge. Subsequently, the Debtors filed a motion in limine to prohibit Buckeye from compelling Mrs. Hake to testify as a witness in Mr. Hake’s trial. The bankruptcy court granted the motion in limine on October 26, 2007. In pertinent part, the order read:

Debtors anticipate that Buckeye might attempt to call Mrs. Hake for the purpose of contesting the discharge of Mr. Hake. Plaintiffs have acknowledged as much . . . . To the extent such questioning would implicate confidential communications between Mr. and Mrs. Hake, such testimony is privileged. . . . As a consequence, the Court grants the Motion in Limine on the basis that any testimony by Mrs. Hake concerning the remaining defendant in this case, Randall J. Hake, would be privileged. If and to the extent Plaintiffs can establish that (i) testimony by Mrs. Hake is essential to their case objecting to the denial of Mr. Hake . . .; and (ii) such questions/testimony would not implicate confidential communications between husband and wife, the Court will permit Plaintiffs to seek reconsideration of this Order. (App. at Tab 8, p. 11.)

-3- Notwithstanding the pre-trial order, Armstrong instructed a Buckeye representative to contact the U.S. Marshal’s office in order to have a trial subpoena served upon Mrs. Hake. On October 29, 2007, the first day of trial, the bankruptcy court learned of the attempt to subpoena Mrs. Hake through direct contact with the Marshal’s office and instructed the Marshals not to serve the subpoena.

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