International Christian Broadcasting, Inc. v. Koper (In re Koper)

552 B.R. 208, 2016 Bankr. LEXIS 2090
CourtUnited States Bankruptcy Court, E.D. New York
DecidedMay 23, 2016
DocketCase No: 8-13-74213-las; Adv. Pro. No. 13-08167-las; Adv.Pro. No. 13-08168-las; Adv. Pro. No. 13-08169-las
StatusPublished
Cited by3 cases

This text of 552 B.R. 208 (International Christian Broadcasting, Inc. v. Koper (In re Koper)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
International Christian Broadcasting, Inc. v. Koper (In re Koper), 552 B.R. 208, 2016 Bankr. LEXIS 2090 (N.Y. 2016).

Opinion

DECISION AND ORDER DENYING DEFENDANT’S MOTION UNDER FED. R. CIV. P. 60(b)

Louis A. Scarcella, United States Bankruptcy Judge

I.Introduction

Defendant Michael W. Koper moves this Court under Rules 60(b)(3) and (6) of the Federal Rules of Civil Procedure (“Fed. R. Civ. P.”), made applicable to these adversary proceedings by Rule 9024 of the Federal Rules of Bankruptcy Procedure (the “Rule 60(b) Motion”) [Adv. Dkt. No. 272] 1 to vacate (i) the Order Approving Stipulation [Adv. Dkt. No. 262], (ii) the Order Granting Sanctions Motion on Consent [Adv. Dkt. No. 263],. and (iii) the Judgment on Consent [Adv. Dkt. No. 264] entered by the Court on October 30, 2015, and to restore the evidentiary hearing on the sanctions motion and trial in these adversary proceedings to the Court’s docket. Plaintiffs International Christian Broadcasting, Inc. (“ICB”) and Trinity Christian Center of Santa Ana, Inc. (“TCCSA”), doing business as Trinity Broadcasting Network (“TEN”), oppose the Rule 60(b) Motion. [Adv. Dkt. No. 273],

The matter has been fully briefed and the Court has considered carefully the parties’ submissions, the relevant law and the record in this case. The Court held a hearing on March 3, 2016. Upon completion of the hearing, and for the reasons set forth on the record of the hearing, the Court denied the Rule 60(b) Motion. This Decision and Order memorializes and explains further the bases for the Court’s ruling.

II. Jurisdiction

The Court has jurisdiction over this matter under 28 U.S.C. § 1334(b) and the Standing Order of Reference entered by the United States District Court for the Eastern District of New York pursuant to 28 U.S.C. § 157(a), dated August 28, 1986, as amended by Order dated December 5, 2012, effective nunc pro tunc as of June 23, 2011. This is a core proceeding under 28 U.S.C. § 157(b)(2)(I). A bankruptcy judge may hear and finally determine any core proceeding. 28 U.S.C. § 157(b)(1). A proceeding to determine the discharge-ability of a debt “stems from the bankruptcy itself,” and may constitutionally be decided by a bankruptcy judge. Stern v. Marshall, 564 U.S. 462, 131 S.Ct. 2594, 2618, 180 L.Ed.2d 475 (2011). Accordingly, final judgment is within the scope of the Court’s jurisdictional and constitutional authority.

III. Background2

The facts of this case and its procedural history are discussed in the Court’s prior [211]*211Memorandum Decision and Order dated September 30, 2014 [Adv. Dkt. No. 136], familiarity with which is assumed. Accordingly, the Court provides background only to the extent necessary to resolve the pending Rule 60(b) Motion.

Defendant is an attorney. He and his former spouse, Brittany Koper (n/k/a Brittany Davidson) {“Brittany”), were previously employed by plaintiffs. Their employment terminated in September of 2011. Since then, plaintiffs, defendant and Brittany have been engaged in long and contentious litigation in various jurisdictions both at the federal and state court level. On August 14, 2013, defendant filed for relief under chapter 7 of the Bankruptcy Code, thus staying all litigation pending against him pursuant to section 362(a) of the Bankruptcy Code.

On October 14, 2013, ICB filed Proof of Claim No. 1 in the amount of $6,900,000 and TCCSA filed Proof of Claim No. 2 in the amount of $800,000. By far, plaintiffs hold the largest unsecured claims lodged against defendant. On the same day they filed their proofs, of claim, plaintiffs commenced the referenced adversary proceedings'against defendant seeking a determination of dischargeability of debt under 11 U.S.C. §§ 523(a)(2), (a)(4) and (a)(6).3 As with the non-bankruptcy litigation, this litigation too has been a long and contentious one, spanning over two and a half years with multiple rounds of motion practice. Pursuant to a Second Amended Scheduling Order entered on May 4, 2015, discovery closed on June 30, 2015. [Adv. Dkt. No. 191].

On April 1, 2015, plaintiffs filed a Motion for Sanctions Concerning Defendant’s Fabrication of Evidence and Perpetration of Fraud on the Court (the “Sanctions Motion”) [Adv. Dkt. No. 172], The Sanctions Motion alleged, inter alia, that defendant (i) fabricated documents to make it appear that defendant and Brittany were authorized to expend plaintiffs’ funds, (ii) scanned these documents onto his Sony VAIO computer and manually manipulated the VAIO’s internal computer system clock time settings to make it appear that the documents had been created or modified on those artificial “roll back” dates, (iii) used the VAIO computer to gain access to an email account of TBN and illegally procured plaintiffs’ confidential corporate and legal records, (iv) installed a Lotus Notes email program on the VAIO computer which was used to fabricate emails purporting to have been sent or received in years prior to 2012, (v) installed and operated a program known as CCleaner on the VAIO computer to overwrite information and render such information on the VAIO computer unrecoverable, (vi) intentionally destroyed material evidence that supported plaintiffs’ claims against him regarding the nondischargeability of his debt to the plaintiffs, and (vii) acted willfully, maliciously and with intent to defraud the plaintiffs and the Court. The Sanctions Motion sought an order (a) striking defendant’s answer and counterclaim in these [212]*212adversary proceedings, and (b) awarding monetary sanctions in the form of attorneys’ fees and costs incurred with respect to the Sanctions Motion. On May 5, 2015, defendant filed a sworn declaration [Adv. Dkt, No. 193] and a memorandum of law [Adv. Dkt. No. 194] in opposition to the Sanctions Motion. Plaintiffs filed a reply on May 12, 2015. [Adv. Dkt. No. 199].

A hearing on the Sanctions Motion, with a trial to commence immediately thereafter, was scheduled for the week of October 26, 2015. A Joint Pretrial Statement on Non-Dischargeability Complaints and Sanctions Motion signed by plaintiffs’ counsel and by defendant and his counsel, was filed with the Court on September 14, 2015. [Adv. Dkt. No. 235].

On the morning of October 26, 2015, prior to commencement of the hearing on the Sanctions Motion, the parties requested additional time to continue their discussions in an effort to resolve the pending dispute. The Court allowed the parties to use the courtroom and adjacent conference room to continue their negotiations. Later that morning, the parties presented the Court with a Stipulation of Resolution of Sanctions Motion and Stipulation to Judgment in Adversary Proceeding (“Stipulation”). [Adv. Dkt. No. 262-1].

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

Related

Celsius Network LLC
S.D. New York, 2023
Joe Clyde Tubwell
N.D. Mississippi, 2019
Messer v. Wei Chu (In re Xiang Yong Gao)
560 B.R. 50 (E.D. New York, 2016)

Cite This Page — Counsel Stack

Bluebook (online)
552 B.R. 208, 2016 Bankr. LEXIS 2090, Counsel Stack Legal Research, https://law.counselstack.com/opinion/international-christian-broadcasting-inc-v-koper-in-re-koper-nyeb-2016.