Johnson-Allen v. Crown Leasing Corp. (In Re Johnson-Allen)

68 B.R. 812, 1987 Bankr. LEXIS 10, 15 Bankr. Ct. Dec. (CRR) 614
CourtUnited States Bankruptcy Court, E.D. Pennsylvania
DecidedJanuary 8, 1987
Docket19-11332
StatusPublished
Cited by14 cases

This text of 68 B.R. 812 (Johnson-Allen v. Crown Leasing Corp. (In Re Johnson-Allen)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Johnson-Allen v. Crown Leasing Corp. (In Re Johnson-Allen), 68 B.R. 812, 1987 Bankr. LEXIS 10, 15 Bankr. Ct. Dec. (CRR) 614 (Pa. 1987).

Opinion

OPINION

DAVID A. SCHOLL, Bankruptcy Judge.

Presently before the Court in the instant adversarial case are three (3) Motions, the most prominent of which is the Defend *813 ant’s Motion requesting this Court to disqualify ourselves from hearing this matter because of our involvement, prior to taking the bench, in litigation against another party similar to that instituted by the Plaintiff-Debtor against the Defendant here. The Defendant makes its motion for recusal based upon 28 U.S.C. § 144 and 28 U.S.C. § 455(a), (b)(1) and (2). Because we find the affidavit submitted by the Defendant in support of this motion to be legally insufficient, and because, even assuming the truth of the allegations, we do not believe that a reasonable person, knowing all of the relevant facts, would conclude that this Court harbors a personal bias or prejudice with respect to the case sub judice, this Motion will be denied. We shall also deny the Defendant’s Motion to Dismiss this matter as moot, resolve the Plaintiff's outstanding Motion to compel certain discovery, and schedule proceedings in this matter to further its ultimate disposition in an accompanying Order.

The Debtor filed the instant bankruptcy case on March 14,1986. On April 17, 1986, she filed the instant adversarial proceeding against CROWN LEASING CORPORATION, the Defendant herein. The Debtor’s original case and hence all of its accompanying adversarial proceedings were assigned at random by the Clerk’s Office to the Honorable William A. King, Jr., one of the two (2) bankruptcy judges then sitting in Philadelphia. The undersigned was appointed to succeed Judge King on August 27, 1986, and from that date forward assumed all cases formerly assigned to Judge King, including the instant matter.

On May 21, 1986, the Defendant filed a Motion to dismiss this matter as moot, apparently because the Defendant had relinquished its claims against the Debtor, and it contended that, as a result, the Debtor had no right to proceed against the Defendant. Meanwhile, on May 19, 1986, the Debtor embarked upon discovery from the Defendant. Contending that the initial responses tendered were inadequate, the Debtor filed a Motion to compel discovery on September 25, 1986. Both this Motion, and the Defendant's Motion to Dismiss, which had been heard by Judge Goldhaber on June 17, 1986, but which was continued pending completion of discovery, were listed before the undersigned on October 8, 1986.

On the morning of October 8, 1986, the Defendant filed the aforementioned Motion to disqualify the undersigned. The Court briefly heard argument on that date and then, on October 9, 1986, issued an Order requesting the Defendant and the Debtor to submit Briefs on the issues of the Motion to Dismiss, the Motion to Compel Discovery, and the Motion to Disqualify on November 19, 1986, and December 3, 1986, respectively, and to argue same on December 10,1986. On December 10,1986, Counsel presented argument to the Court. The issue of recusal was taken under advisement and an Order dated December 15, 1986, directed that Supplemental Briefs relating to the discovery Motion be submitted by December 22, 1986.

The crux of the Defendant’s Motion is that the undersigned has evidenced a personal bias or prejudice, not against the Defendant herein, but against an alleged class consisting of members of the ‘rent-to-own’ industry,” of which the Defendant claims to be a member. The asserted bias consists of statements attributed to the undersigned while a practicing attorney in pleadings and legal memoranda filed in litigation, on a radio talk show, and as reported in a newspaper article, concerning this same litigation. The Defendant sets out the grounds for the request for recusal in its Motion and included the required certification of counsel that the accompanying affidavit in support of the Motion was made in good faith. However, the crucial document, the affidavit, submitted by one Dean Aye, states in its entirety as follows:

1. I am employed by Crown Leasing Corporation, and authorized to take this affidavit on its behalf.
2. Craig R. Tractenberg, one of the attorneys for Crown Leasing Corporation, has reviewed with me the within *814 Motion to Disqualify the Honorable David A. Scholl.
3. This affidavit by reference incorporates the entire contents of said Motion.
4. I am advised by Mr. Tractenberg, and therefore believe and aver, that the acts cited in said Motion evidence Judge Scholl’s personal bias or prejudice against Crown Leasing Corporation, a member of a class consisting of members of the “rent-to-own” industry.

Also attached to the Motion are copies of the Complaint and a Brief filed by the undersigned in Chandler, et al v. Riverview Leasing, Inc., No. 1984-CE-2736 (North.Co.Pa.C.P.).

Attached to the Defendant’s Brief, which was filed pursuant to the Briefing Order of this Court, were typed excerpts from a radio talk show on which the undersigned and an attorney representing Riverview Leasing, Inc. appeared on September 23, 1985, and a newspaper article from the (Harrisburg, Pa.) Patriot of May 23, 1986, in which the undersigned is quoted as saying that he hoped that a Harrisburg attorney would represent persons from that area in a suit against Riverview Leasing, Inc.

At the hearing on December 10,1986, the Defendant offered no testimony but moved into evidence, without objection by the Plaintiff’s Counsel, one ninety-minute cassette tape which was represented to be a recording of the entire radio show from which the typed excerpts were taken.

The statutory bases for the Defendant’s motion are 28 U.S.C. § 144 and 28 U.S.C. §§ 455(a), (b)(1) and (b)(2), which state in pertinent part as follows:

§ 144. Bias or prejudice of judge
Whenever a party to any proceeding in a district court makes and files a timely and sufficient affidavit that the judge before whom the matter is pending has a personal bias or prejudice either against him or in favor of any adverse party, such judge shall proceed no further therein, but another judge shall be assigned to hear such proceeding.
The affidavit shall state the facts and the reasons for the belief that bias or prejudice exists, and shall be filed not less than ten days before the beginning of the term at which the proceeding is to be heard, or good cause shall be shown for failure to file it within such time. A party may file only one such affidavit in any case. It shall be accompanied by a certificate of counsel of record stating that it is made in good faith.
§ 455. Disqualification of justice, judge or magistrate

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Cite This Page — Counsel Stack

Bluebook (online)
68 B.R. 812, 1987 Bankr. LEXIS 10, 15 Bankr. Ct. Dec. (CRR) 614, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johnson-allen-v-crown-leasing-corp-in-re-johnson-allen-paeb-1987.