KOB Inc. v. Brand (In re Brand)

545 B.R. 37
CourtUnited States Bankruptcy Court, C.D. California
DecidedJanuary 29, 2016
DocketCase No. 6:13-bk-29686-SC; Adversary No. 6:14-ap-01150-SC
StatusPublished
Cited by1 cases

This text of 545 B.R. 37 (KOB Inc. v. Brand (In re Brand)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
KOB Inc. v. Brand (In re Brand), 545 B.R. 37 (Cal. 2016).

Opinion

MEMORANDUM OF DECISION DISMISSING ADVERSARY PROCEEDING WITH PREJUDICE AS TO DECEASED DEFENDANT JACKIE BRAND, JR.

Scott C. Clarkson, United States Bankruptcy Judge

The Court issued an order to show cause [Dk. 41] (“OSC”) setting a- hearing for [38]*38February 3, 2016, and allowing for parties to file briefs concerning the impact of the death of Defendant Jackie Brand, Jr. (“Mr.Brand”) upon this § 7271 action. Plaintiff filed a brief in opposition to dismissing Mr. Brand [Dk. 44] (“Plaintiffs Brief’) and Defendant Marla Robin Brand (“Mrs.Brand”) filed a reply brief supporting dismissal [Dk. 46] (“Mrs. Brand’s Brief’). The Court finds this matter appropriate for disposition without oral argument.

The Court has carefully considered the Plaintiffs Brief, Mrs. Brand’s Brief, and the record as a whole, and for the reasons set forth below, this adversary proceeding is DISMISSED with prejudice as to Mr. Brand. The OSC hearing is VACATED. This § 727 proceeding shall proceed to trial on May 3, 2016, at 9:30 a.m. as to Defendant Mrs. Brand. The Court writes this memorandum decision to explain its reasoning on the as-of-yet undetermined issue in the Ninth Circuit presented by the application of Federal Rule of Civil Procedure (“Rule”) 25 to this adversary proceeding.

I. Background

Plaintiff filed a § 727 action against Debtors Jackie Brand Jr. and Marla Robin Brand on June 6, 2014. A trial was scheduled for July 28, 2015. On or around July 17, 2015, Jackie Brand Jr. regretfully died. Shortly thereafter, the Court was notified of Mr. Brand’s passing, and on July 20, 2015, the Court entered an order [Dk. 17] (“July 20th Order”), which continued the trial, gave notice of Mr. Brand’s passing, and invited parties to file appropriate motions related to Mr. Brand’s passing. See Order [Dk. 17, page 2, lines 3-5] (“Parties are invited to prepare and file any PreTrial Motions on the subject of the effect of the recent passing of Mr. Brand on the trial or the case.”). The Court served the July 20th Order upon, among others, Plaintiffs attorney, Stephen Seideman, Esq., via U.S. mail at Mr. Seideman’s address of record, 1334 Parkview Ave. Suite 100, Manhattan Beach, CA 90266-3788 on July 22, 2015. See BNC Notice [Dk. 20].

No motions were ever filed by any party.

On September 23, 2015—approximately 65 days after the entry of the July 20th Order—after several hearings, the Court issued a second order [Dk. 30] (“September 23rd Order”). The September 23rd Order provided as follows:

The parties are required to file briefs (Plaintiffs brief is due no later than December 2, 2015 and Defendant’s brief is due no later than December 9, 2015), addressing the effect of the death of co-defendant Jackie Brand, Jr. on this pending Section 727 adversary proceeding. The parties’ briefs must also address the effect of the failure of any party to file any dispositive motion regarding the death of Jackie Brand, Jr., as requested by the Court in its July 20, 2015 order [Dk. 16].

Order [Dk. 30, para. 4]. More than 90 days elapsed from the entry and service of the Court’s July 20th Order, and no motions were filed by any party. Plaintiff filed a brief on December 2, 2015 [Dk. 39], and Mrs. Brand filed her brief on December 8, 2015 [Dk. 40]. Plaintiffs brief acknowledged that “a motion for substitution must be made within 90 days after service of a statement noting death,” but argued that “a motion for substitution of the personal representative or successor in not required, or possible, in this case” and that [39]*39“the 90 day period referred to in Rule 25 has not begun to run.” Plaintiffs Brief [Dk. 39] page 2, lines 9-12. The Court disagrees.

For the reasons set forth below, the Court believes the § 727 action must be dismissed with prejudice as to Mr. Brand based upon Plaintiffs failure to file a timely motion to substitute within the 90-day period following the Court’s entry of the July 20th Order, which noted on the record the passing of Mr. Brand and which was served upon all requisite parties, including Plaintiff via his attorney of record, in accordance with Federal Rule of Bankruptcy Procedure (“Bankruptcy Rule”) 7005.

II. Discussion—Rule 25

When a party to an adversary proceeding dies and the claim is not extinguished, Rule 25 requires a statement noting the death to be served on parties in accordance with Rule 5 and on nonparties in accordance with Rule 4. Fed.R.Civ.P. 25(a). Following the service of the statement noting death, a motion for substitution of the proper party must be made within 90 days or the action must be dismissed as to the deceased party. Fed. R.CÍV.P. 25(a)(1).

In this case, Rule 25 applies because the § 727 action against Mr. Brand was not extinguished upon his passing. See In re Eads, 135 B.R. 380, 385-86 (Bankr.E.D.Cal.1991) (“If a posthumous discharge can be granted, it follows that a discharge can also be denied. Thus, an action objecting to discharge under 11 U.S.C. § 727 does not abate upon the death of the debt- or.”).

The Ninth Circuit held in Barlow v. Ground that Rule 25 requires “two affirmative steps in order to trigger the running of the 90 day period”:

First, a party must formally suggest the death of the party upon the record. Anderson v. Aurotek, 774 F.2d 927, 931 (9th Cir.1985); Grandbouche v. Lovell, 913 F.2d 835 (10th Cir.1990); 3B Moore’s Federal Practice ¶ 25.06[3] (2d ed.1991) (“a formal suggestion of death is absolutely necessary to trigger the running of the ninety days”). Second, the suggesting party must serve other parties and nonparty successors or representatives of the deceased with a suggestion of death in the same manner as required for service of the motion to substitute. Fed.R.Civ.P. 25(a)(1). Thus, a party may be served the suggestion of death by service on his or her attorney, Fed.R.Civ.P. 5(b), while non-party successors or representatives of the deceased party must be served the suggestion of death in the manner provided by Rule 4 for the service of a summons.

Barlow v. Ground, 39 F.3d 231, 233 (9th Cir.1994), The panel in Barlow expressly declined to answer one of the questions that this case presents: whether a notice of death must be served upon nonparty, unascertained representatives of the decedent before the 90-day limitations period will begin to run. In addition, Barlow did not address whether unascertained representatives must be identified in the notice of death. This issue was raised by the Plaintiff.

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Cite This Page — Counsel Stack

Bluebook (online)
545 B.R. 37, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kob-inc-v-brand-in-re-brand-cacb-2016.