In Re Zepecki

224 B.R. 907, 1998 Bankr. LEXIS 1222, 1998 WL 678105
CourtUnited States Bankruptcy Court, E.D. Arkansas
DecidedSeptember 24, 1998
DocketBankruptcy 96-30125M
StatusPublished
Cited by6 cases

This text of 224 B.R. 907 (In Re Zepecki) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, E.D. Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Zepecki, 224 B.R. 907, 1998 Bankr. LEXIS 1222, 1998 WL 678105 (Ark. 1998).

Opinion

ORDER

JAMES G. MIXON, Chief Judge.

This case is before the Court to determine the amount of attorneys fees and costs that should be assessed Fred Hart, attorney for Robert G. Zepecki (“Debtor”), for Hart’s failure to appear at a scheduled hearing on *909 October 21, 1997, in Jonesboro, Arkansas. Having heard testimony on November 21, 1997, February 23, 1998, and June 16, 1998, as to the amount of fees due to Jim Luker, the trustee, and Guy Brinkley, attorney for Bonnie Harlan, a creditor in this case, the Court took the matter under advisement.

This is a core proceeding in accordance with 28 U.S.C. § 157(b)(2)(A), and the Court has jurisdiction to enter a final judgment in the case.

FACTS

Relevant to a determination of how much Hart will pay are the following facts. The Debtor filed his voluntary petition under the provisions of chapter 7 of title 11 on February 7, 1996, and Luker was appointed trustee. The Debtor converted his case to chapter 13 on March 22,1996. After a hearing on Harlan’s motion to convert, the Court converted the Debtor’s case back to chapter 7 by order filed August 16, 1996. Luker was again appointed trustee.

The Debtor filed a timely notice of appeal on August 23,1996, 1 and requested the bankruptcy court to stay its order pending the appeal. The Court granted the stay, conditioned upon the Debtor’s posting of a $150,-000.00 corporate supersedeas bond. No bond was posted and the order of conversion remained in effect.

Thereafter, Harlan filed motions for extension of time to object to discharge/discharge-ability and for relief from stay in regard to marital property. Also filed were motions by Luker (hereinafter “Trustee”) to extend time to object to discharge and to compel the Debtor to attend a first meeting of creditors. These matters were set for hearing at 9:30 a.m. on October 21, 1997, in Jonesboro, Arkansas.

Notice of the hearing was sent to the Debtor and to Hart, but neither appeared at the designated time and place. The transcript of the proceedings on October 21 reveals that the Court called the case at about 9:45 a.m., at which time the Trustee announced that no one was present for the Debtor or for creditor Harlan. The Trustee explained to the Court that the Debtor had lodged a motion for contempt against him for continuing to administer the case while the conversion was on appeal, 2 and that he was therefore unsure how or indeed whether to proceed. The Court declared a recess from 9:50 a.m. to 10 a.m. to attempt to reach Hart by telephone.

Upon reconvening, the Court reported on the record that Hart had answered his telephone at his office and had explained that, while he did receive notice of the hearing, he did not appear because to do so would be “asinine.” Hart’s theory was that the motions set for hearing were lacking in merit because of the pending appeal of the Court’s order converting the case.

Continuing on the record, the Court rescheduled hearings upon the motions of the Trustee and Harlan and announced that it would also consider a motion to recover costs to compensate the Trustee for his futile appearance. The transcript of the hearing reflects that some intervening cases came before the Court before Brinkley, Harlan’s attorney, was able to bring his presence to the Court’s attention. Apparently not having been present at the earlier colloquy between the Trustee and the Court, Brinkley was advised that all matters had been reset and was invited to file a motion for attorneys fees and costs as sanctions against the Debtor and Hart.

Subsequently, the Court issued an order to show cause why Hart should not be sanctioned for costs incurred by the opposing parties who had appeared at the October 21 hearing. Both the Trustee and Brinkley filed motions asking for attorney’s fees and expenses incurred at the October 21 hearing. The Debtor responded that the Court had no jurisdiction over the motions set for hearing on October 21 because of the pending appeal. The Debtor further asserted that the pres- *910 enees of the Debtor and Hart were not necessary for the Court to rule on the motions under consideration; therefore, any delay was the fault of the Court and/or the other parties.

The Trustee, Brinkley, the Debtor, and Hart appeared at the re-scheduled hearing on November 21, 1997, at 1:30 p.m. in Little Rock, Arkansas. According to the transcript of the proceedings, the Court called .the ease at 1:40 p.m. Under consideration were the four previously continued motions, the order to show cause, and the motions for attorneys fees and expenses filed by the Trustee and Brinkley. The Court commenced by allowing Hart time to explain why he failed to appear at the October 21 hearing. Hart argued again that the Court had no jurisdiction because of the pending appeal of the Court’s conversion order and that his presence was not needed at the hearing to dispose of the matters because Hart and the Debtor had planned not to oppose the motions. Hart admitted that the Debtor had not posted a supersedeas bond staying the order converting the case.

The Trustee and Brinkley, in turn, briefly discussed the extra time they expended that had been necessitated by the Debtor’s and Hart’s failure to appear. Without ruling on the matter of attorney’s fees, the Court proceeded to the other matters on the docket, beginning with the Trustee’s motion to extend time to file an objection to discharge. When asked if he had objections to the Trustee’s motion, Hart began giggling and behaving in an inappropriate manner.

At that point, the Court removed Hart as the Debtor’s attorney and continued the other matters until the Debtor could engage another attorney. The hearing on November 21, 1997, was re-scheduled for February 23, 1998, in Jonesboro, Arkansas, at which time Hart failed to appear. The Court awarded Brinkley $1000.00 in fees to be paid by Hart and $400.00 in fees to be paid by the Debtor. The Court awarded the Trustee a total of $725.00 in attorney’s fees, with the Debtor to pay $125.00 and Hart to pay the remaining $600.00.

On March 5, 1998, Hart moved for a new trial or hearing on the subject of attorney’s fees on the basis that he had not received notice of the February 23 hearing date. The Court granted the motion for new hearing on the matter of attorney’s fees as related to Hart’s obligation because Hart did not receive notice. The matter was set for hearing June 16,1998, in Jonesboro.

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Cite This Page — Counsel Stack

Bluebook (online)
224 B.R. 907, 1998 Bankr. LEXIS 1222, 1998 WL 678105, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-zepecki-areb-1998.