In re: Sherrie Nicole Lockhart-Johnson

United States Bankruptcy Appellate Panel for the Ninth Circuit·Decided June 11, 2026·No. 25-1153·Unpublished

Opinion

FILED JUN 11 2026 NOT FOR PUBLICATION SUSAN M. SPRAUL, CLERK U.S. BKCY. APP. PANEL OF THE NINTH CIRCUIT UNITED STATES BANKRUPTCY APPELLATE PANEL OF THE NINTH CIRCUIT

In re: BAP No. CC-25-1153-GLS SHERRIE NICOLE LOCKHART- JOHNSON, Bk. No. 2:20-bk-10969-BB Debtor. Adv. No. 2:20-ap-01073-BB SHARLENE WILLARD, Appellant, v. MEMORANDUM* SHERRIE NICOLE LOCKHART- JOHNSON; STEVE TODD JOHNSON, Appellees.

Appeal from the United States Bankruptcy Court for the Central District of California Sheri Bluebond, Bankruptcy Judge, Presiding

Before: GAN, LAFFERTY, and SPRAKER, Bankruptcy Judges.

INTRODUCTION

Appellant Sharlene Willard seeks reversal of the judgment entered in

favor of chapter 7 1 debtor Sherrie Nicole Lockhart-Johnson (“Debtor”) and

* This disposition is not appropriate for publication. Although it may be cited for whatever persuasive value it may have, see Fed. R. App. P. 32.1, it has no precedential value, see 9th Cir. BAP Rule 8024-1. 1 Unless specified otherwise, all chapter and section references are to the

Bankruptcy Code, 11 U.S.C. §§ 101–1532, all “Rule” references are to the Federal Rules of Bankruptcy Procedure, and all “Civil Rule” references are to the Federal Rules of Civil Procedure. her non-filing spouse, Steve Todd Johnson, on Willard’s complaint to

except from the community discharge a debt incurred by Johnson.

Pursuant to § 524(a)(3), Willard was required to prove that Johnson’s debt

was a community obligation, and it would be held nondischargeable in a

hypothetical case filed by Johnson.

The bankruptcy court granted summary judgment in favor of Debtor

on individual claims for nondischargeability because Willard alleged

fraudulent conduct by only Johnson, not Debtor. The court entered

judgment after trial because Willard did not establish a basis for

nondischargeability in a hypothetical case filed by Johnson.

Willard argues the court erred by granting summary judgment and

by entering judgment after trial. She asserts the court erred by denying her

motion to recuse and made several errors in its evidentiary rulings.

Willard’s claims are baseless. We AFFIRM.

FACTS 2

A. Prepetition Events and Debtor’s bankruptcy

In 2017, Willard filed a complaint in state court for breach of a

contract to perform home repairs against Johnson, Pro-Team Contractor

(“Pro-Team”), and Joe Powell, who was Johnson’s uncle and the owner of

Pro-Team. She obtained a default judgment for $10,395, and subsequently

2 We exercise our discretion to take judicial notice of documents electronically filed in the adversary proceeding and main bankruptcy case. See Atwood v. Chase Manhattan Mortg. Co. (In re Atwood), 293 B.R. 227, 233 n.9 (9th Cir. BAP 2003). 2 sought to garnish Debtor’s wages, asserting that the debt was a community

obligation.

Debtor filed a chapter 7 petition in January 2020 and indicated she

was married but either legally separated or living separately from her

spouse. Debtor scheduled the debt to Willard as a community debt.

B. Willard’s adversary complaint

Willard filed an adversary complaint under § 523(a)(2)(A) to hold her

claim nondischargeable. She alleged that Johnson fraudulently represented

that he was a licensed contractor who then abandoned the job after

receiving payment. Willard also alleged that Johnson willfully and

maliciously damaged her property. According to Willard, the state court

had determined that the debt was not a community debt, but she argued

that Debtor was attempting to discharge the debt as a community

obligation by listing Willard as a creditor.

Debtor filed a motion to dismiss because Willard did not allege any

wrongful conduct by Debtor. At the hearing, Willard stated that she made

factual errors in her complaint and, after obtaining transcripts, she realized

the state court had not conclusively determined whether the judgment was

a community debt.

The bankruptcy court dismissed the complaint with prejudice.

Willard appealed, and though we agreed that dismissal was appropriate,

we vacated the order and remanded with instructions to dismiss with leave

to amend. Willard v. Lockhart-Johnson (In re Lockhart-Johnson), 631 B.R. 38, 49

3 (9th Cir. BAP 2021). We reasoned that Willard conceivably could amend

the complaint to assert a claim for relief from the community property

discharge under § 524(a)(3) by alleging the existence of a community debt

and “sufficient facts to support a hypothetical claim of nondischargeability

or denial of discharge against the nondebtor spouse as of the petition date.”

Id. at 48.

On remand, the bankruptcy court granted leave, and Willard filed an

amended complaint. She alleged that her judgment against Johnson was a

community debt, and that Johnson fraudulently represented that he was a

licensed contractor, he was a proprietor of Pro-Team, and he had the

expertise to complete the home repairs in a timely manner. Willard

asserted that Joe Powell had previously testified that Johnson fraudulently

used his business name and license. Willard further alleged that Johnson

willfully left a pipe open in her upstairs bathroom which caused extensive

water damage, and he destroyed her upstairs bathroom by removing the

toilet and sink, breaking the shower tile, ripping out walls, and leaving

debris and trash throughout the adjacent room. She maintained that the

debt would be nondischargeable under § 523(a)(2)(A) and (a)(6) in a

hypothetical case filed by Johnson.

C. The protective order, motion for summary judgment, and motion to recuse

Neither Willard nor Debtor and Johnson were represented by

counsel, and the parties had substantial difficulty in conducting discovery.

4 Debtor sought a protective order, claiming that Willard violated discovery

rules and sought to harass her and Johnson by making damaging

statements to people in their churches.

Because of the parties’ difficulties in dealing with each other, the

court bifurcated the issues for discovery and trial. The court entered an

order requiring the parties to conduct and complete any discovery

necessary to proceed to trial on the sole issue of whether Willard’s claim

would be nondischargeable in a hypothetical case filed by Johnson, and to

refrain from propounding or responding to any discovery related to

whether the debt was a community obligation.

The court then entered a protective order precluding Willard from

driving to the homes of Debtor or Johnson and from visiting or telephoning

the clergy, agents, or employees of Debtor’s or Johnson’s church. The order

required Willard to utilize only formal discovery devices, and consistent

with the order bifurcating issues, to refrain from conducting any discovery

concerning the community property issue pending further order from the

court.

Debtor then filed a motion for summary judgment. She argued that

she did not have financial or business relations with Willard and did not

make any misrepresentations to her.

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