In Re Walker

332 B.R. 820, 2005 Bankr. LEXIS 2358, 2005 WL 2901804
CourtUnited States Bankruptcy Court, D. Nevada
DecidedOctober 25, 2005
Docket19-10534
StatusPublished
Cited by10 cases

This text of 332 B.R. 820 (In Re Walker) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, D. Nevada primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Walker, 332 B.R. 820, 2005 Bankr. LEXIS 2358, 2005 WL 2901804 (Nev. 2005).

Opinion

AMENDED OPINION AND ORDER DENYING MOTION FOR RECONSIDERATION

BRUCE A. MARKELL, Bankruptcy Judge.

This case involves the efforts of Michael Lehners, Esq., appearing on behalf of Citi-mortgage, Inc. (Citimortgage), to obtain reconsideration of an order entered when he failed to appear at a hearing he scheduled. For the reasons stated in this memorandum, the court will deny Mr. Lehners’ “Motion for Reconsideration” filed August 4, 2005 (Docket # 34; the Reconsideration Motion).

FACTS

On June 28, 2005, Mr. Lehners filed a Motion of Relief from Stay (Docket # 25; the Relief Motion) on behalf of Citimort- *825 gage with respect to the residence of Tor-rie Walker and Porsha Reynolds-Walker, the debtors in this case. The Relief Motion claimed that the debtors were delinquent on their home mortgage with Citi-mortgage, and on their chapter 13 plan. Mr. Lehners served a notice of the hearing on the Relief Motion which stated that the hearing date would be July 27, 2005. 1

Debtors, representing themselves, timely served an opposition to the Relief Motion. In it, the debtors acknowledged that they were late on their house payments, but they disputed Citimortgage’s payment history. They also alleged, however, that a bill collector associated with Citimort-gage had recently harassed them, in violation of the automatic stay, by going to the debtors’ home when only their minor child was present, and then threatening to throw the child’s parents in jail and the child’s family in the street. The debtors connected this alleged stay violation with Mr. Lehners because, after the harassment, Mr. Lehners or his office called the debtors using a previously undisclosed telephone number that had been pried out of their minor child by the bill collector.

Surprisingly, Mr. Lehners made no reply, written or otherwise, to these allegations before the July 27th hearing on the Relief Motion. Moreover, at that hearing, the debtors appeared, but Mr Lehners did not. On July 28, 2005, the court entered an order denying the Relief Motion with prejudice for failure to prosecute. 2

On August 4, 2005, Mr. Lehners filed the Reconsideration Motion, which sought reconsideration on three grounds: that the debtors did not dispute the arrearage; that he had relied on debtors’ alleged representations regarding payment of the ar-rearage; and that counsel’s failure to appear was due to a “calendaring error” by his secretary. Counsel further denied “terrorizing” the debtors. Mr. Lehners therefore requested relief from the order on the Relief Motion so that Citimortgage would not be penalized.

Mr. Lehners did not appear at the hearing on the Reconsideration Motion. Instead he sent “appearance counsel.” The debtors appeared, however, and reiterated their prior position. They further contended that Mr. Lehners had made significant factual errors in the Reconsideration Motion. Appearance counsel could add nothing to the papers already filed, which was significant since the Reconsideration Motion only alleged Mr. Lehner’s lack of knowledge of the identified bill collector, and not of the company for which he worked (and who had been named in the debtors’ opposition).

The court denied the Reconsideration Motion from the bench. Although not the prevailing party, Mr. Lehners submitted a proposed order on the Reconsideration Motion for the court to sign. While this proposed order accurately reflected the court’s ultimate disposition — denial of the Reconsideration Motion — it also contained a proposed finding that “this court did not *826 find the Secured Creditor or its counsel harassed the debtors in any way.” Not only did the court not make such a finding, it expressly stated on the record at the hearing on the Reconsideration Motion that Mr. Lehner’s purported evidence for such a finding was non-responsive to the debtors’ allegations. 3

DISCUSSION

A. The Illegitimate Nature of a “Motion to Reconsider”

The Federal Rules of Civil Procedure “do not recognize a motion for reconsideration.” Captain Blythers, Inc. v. Thompson (In re Captain Blythers, Inc.), 311 B.R. 530, 539 (9th Cir. BAP 2004). Instead, the rules recognize two types of motion to obtain post-judgment relief: a motion to alter or amend judgment, Fed. R. Civ. P. 59(e), and a motion for relief from judgment, Fed. R. Crv. P. 60. 4 These rules are made applicable to bankruptcy cases by Federal Rules of Bankruptcy Procedure 9023 and 9024, respectively. 5

Citimortgage’s Reconsideration Motion does not refer to either Rule 9023 or Rule 9024 (or to the rules they incorporate); indeed, it cites to no authority whatsoever. Instead, it simply assumes that relief contrary to the court’s order is appropriate “without citing a particular Code section or Rule, or outlining the elements to be satisfied.” Captain Blythers, 311 B.R. at 539. Not only does Citimortgage err when it fails to state the authority under which it seeks reconsideration, it compounds this error by offering nothing to support reconsideration other than a bare (and barren) plea for lenity due to a “calendaring error” on the part of counsel’s secretary. Clearly, such a motion for reconsideration, devoid of any relevant authority, is a “motion asking for trouble.” Smith v. Lachter (In re Smith), 242 B.R. 694, 698 n. 3 (9th Cir. BAP 1999). In an attempt to give counsel the benefit of the doubt, however, the court will assess the Reconsideration Motion under all applicable standards.

B. The Reconsideration Motion as a Motion to Alter or Amend the Judgment Under Bankruptcy Rule 9028

If a motion for reconsideration is filed within ten days after the entry of judgment, the court may construe it as a motion for relief from judgment under Rule 9023, incorporating Fed. R. Civ. P. 59(e). Am. Ironworks & Erectors, Inc. v. N. Am. Constr. Corp., 248 F.3d 892, 898-99 (9th Cir.2001). After noting that “reconsideration of a judgment after its entry is an extraordinary remedy which should be used sparingly,” Wright, Miller & Kane *827 set forth four grounds upon which such a motion may be granted:

First, the movant may demonstrate that the motion is necessary to correct manifest errors of law or fact upon which the judgment is based. Second, the motion may be granted so that the moving party may present newly discovered or previously unavailable evidence. Third, the motion will be granted if necessary to prevent manifest injustice....

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Jerry Lee Losee
D. Idaho, 2019
Olomi v. Tukhi (In re Tukhi)
560 B.R. 326 (C.D. California, 2016)
In re: Brett Gordon Pekrul
Ninth Circuit, 2013
In re: Avram Moshe Perry
Ninth Circuit, 2013
In re Sas
488 B.R. 178 (D. Nevada, 2013)
In re: Saman Hasnain
Ninth Circuit, 2012
In re: Grace M. Ceniceros
Ninth Circuit, 2012
In Re Cable & Wireless USA, Inc.
338 B.R. 609 (D. Delaware, 2006)

Cite This Page — Counsel Stack

Bluebook (online)
332 B.R. 820, 2005 Bankr. LEXIS 2358, 2005 WL 2901804, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-walker-nvb-2005.