Leroy Carrillo, Jr. v. Philip Montoya

CourtBankruptcy Appellate Panel of the Tenth Circuit
DecidedMay 7, 2026
Docket25-014
StatusPublished

This text of Leroy Carrillo, Jr. v. Philip Montoya (Leroy Carrillo, Jr. v. Philip Montoya) is published on Counsel Stack Legal Research, covering Bankruptcy Appellate Panel of the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Leroy Carrillo, Jr. v. Philip Montoya, (bap10 2026).

Opinion

BAP Appeal No. 25-14 Docket No. 82 Filed: 05/07/2026 Page: 1 of 22 FILED U.S. Bankruptcy Appellate Panel of the Tenth Circuit NOT FOR PUBLICATION 1 May 7, 2026 UNITED STATES BANKRUPTCY APPELLATE PANEL Anne M. Zoltani OF THE TENTH CIRCUIT Clerk _________________________________

IN RE LEROY CARRILLO, JR. and BAP No. NM-25-014 BARBARA CARRILLO,

Debtors.

__________________________ Bankr. No. 93-10091 Chapter 7 LEROY CARRILLO, JR.,

Appellant,

v.

PHILIP J. MONTOYA, Chapter 7 Trustee, OPINION ROTHSTEIN DONATELLI, LLP, ASKEW LAW FIRM, JAMES I. STANG, ERIC SCHWARTZ, and DAVIS MILES LAW FIRM,

Appellees. _________________________________

Appeal from the United States Bankruptcy Court for the District of New Mexico _________________________________

Before ROMERO, Chief Judge, LOYD, and HUNT, Bankruptcy Judges. _________________________________

ROMERO, Chief Judge. _________________________________

This unpublished opinion may be cited for its persuasive value, but is not 1

precedential, except under the doctrines of law of the case, claim preclusion, and issue preclusion. 10th Cir. BAP L.R. 8026-6. BAP Appeal No. 25-14 Docket No. 82 Filed: 05/07/2026 Page: 2 of 22

I. Background

In January 1993, Appellant and his spouse commenced a voluntary Chapter 7 case,

which was closed in May 1993. Appellant is a survivor of child abuse perpetrated by the

Roman Catholic Church of the Archdiocese of Santa Fe (“ASF”). Appellant did not list

any claims against ASF on his bankruptcy statements or schedules. In 2018, ASF filed for

Chapter 11 bankruptcy and a plan of reorganization (“ASF Case”). 2 The primary purpose

of the filing was to approve settlement claims of abuse survivors. Initially, Appellant

negotiated pro se with ASF to settle his claims for $40,000. In June 2019, Appellant

retained Carolyn Nichols of Rothstein Donatelli, LLP (“Rothstein”) to represent him in

the ASF Case. 3 Ultimately, Rothstein established the prior settlement did not preclude

Appellant from seeking further recovery from ASF (“ASF Claim”).

In December 2020, in the ASF Case, the Bankruptcy Court addressed whether

claims held by individuals who had filed bankruptcy before the ASF Case commenced

were owned by the individuals or their bankruptcy estates, and invited any party to brief

the issue. 4 Around the same time, the Bankruptcy Court in the ASF Case ordered the

United States Trustee’s Office to reopen several cases and appoint Chapter 7 trustees. On

June 7, 2021, these appointed Chapter 7 trustees filed a brief in the ASF Case arguing the

2 Case No. 18-13027, Petition, Bankr. ECF No. 1 and Chapter 11 Plan, Bankr. ECF No. 1128. 3 Fee Agreement in Appellees’ App. at 82. 4 Case No. 18-13027, Scheduling Order on Ownership of Claims of Individual Claimants who Filed Bankruptcy Before this Case was Filed, Bankr. ECF No. 597. 2 BAP Appeal No. 25-14 Docket No. 82 Filed: 05/07/2026 Page: 3 of 22

claims were property of the respective bankruptcy estates. 5 On June 21, 2021, Rothstein

responded on behalf of Appellant opposing the relief requested by the Chapter 7

trustees. 6

On August 20, 2021, the Chapter 7 trustees and Rothstein filed a stipulated order

in the ASF Case, which the Bankruptcy Court approved (“Stipulation”). 7 The Stipulation

provided the Chapter 7 trustees and claimant 255 (presumably Appellant) had resolved

the issue of ownership of such claims. The Stipulation further provided, if a claimant who

had previously filed a bankruptcy case did not schedule an ASF claim on their

bankruptcy schedules, the claim was property of the claimant’s bankruptcy estate. 8 On

October 5, 2021, the Bankruptcy Court in the ASF Case entered an order (“ASF Order”)

providing “[t]o the extent they have not been reopened, the Court will reopen all closed

bankruptcy cases filed in this district where the debtor later filed a claim in the above-

captioned case. The cases shall be reopened under seal.” 9

5 Case No. 18-13027, Chapter 7 Trustee’s Brief on Claims Ownership Issues, Bankr. ECF No. 711. 6 Case No. 18-13027, Response to Chapter 7 Trustee’s Brief on Claims Ownership Issues and Joined, Bankr. ECF No. 724 (arguing the relief requested by the chapter 7 trustees “is premature and inappropriate for resolution on a general global basis in this Chapter 11 proceeding.”). 7 Case No. 18-13027, Stipulated Order on Ownership of Certain Claims, Bankr. ECF No. 783 (“If Claimant did not schedule the tort on their bankruptcy schedules, the tort claim is deemed to be property of the Claimant’s bankruptcy estate under § 541 and Debtor shall be entitled to file an amended exemption claim as to the tort claim only, to which the Trustee shall retain the right to object.”). 8 Id. (recognizing “the importance of the relationships between the survivor and counsel in prosecuting the claims”). 9 Case No. 18-13027, Order Resulting from Status Conference on Ownership of Claims of Individual Claimants Who Filed Bankruptcy Before this Case was Filed, Bankr. ECF No. 828 at 2. 3 BAP Appeal No. 25-14 Docket No. 82 Filed: 05/07/2026 Page: 4 of 22

As a result, the Bankruptcy Court reopened Appellant’s bankruptcy case sua

sponte on October 13, 2021. Subsequently, the United States Trustee appointed Philip

Montoya (“Chapter 7 Trustee”) as Chapter 7 trustee in Appellant’s case

(“Appointment”). 10 On December 2, 2021, the Bankruptcy Court in the ASF Case entered

an order (i) acknowledging the Stipulation and (ii) stating the Chapter 7 trustees’

intention “to review the terms of the employment agreements between the Claimants and

their counsel in this case, if any, and make best efforts, subject to the approval of this

Court, to employ such counsel [presumably on behalf of the estate] on similar terms to

which they were previously employed.” 11

On November 7, 2022, the Chapter 7 Trustee filed a request to appoint Rothstein

as special counsel to assist him in pursuing the tort claims in the ASF Case pursuant to 11

U.S.C. § 327(e) 12 (“Application”), 13 which the Bankruptcy Court granted following no

objections (“Employment Order”). 14 Per the Employment Order, Rothstein would be paid

under a contingent fee agreement providing for 33.33% of any recovery out of the

Chapter 7 Trustee’s share of any proceeds obtained in any settlement, similar to the

arrangement Rothstein had with Appellant. 15 The Chapter 7 Trustee also retained Askew

10 Notice of Appointment of Trustee, Bankr. ECF No. 16. 11 Case No. 18-13027, Order on Ownership of Certain Claims, Bankr. ECF No. 889 at 4. 12 All future references to “Bankruptcy Code,” “Code,” or “§,” refer to Title 11 of the United States Code. All references to “Rule” or “Rules” refer to the Federal Rules of Bankruptcy Procedure, and references to “Civil Rule” or “Civil Rules” refer to the Federal Rules of Civil Procedure. 13 Application, Bankr. ECF No. 26. 14 Id. at 1 in Appellant’s App. at 31. 15 Id. at 2 in Appellant’s App. at 32; Fee Agreement at 2 in Appellees’ App. at 83. 4 BAP Appeal No. 25-14 Docket No. 82 Filed: 05/07/2026 Page: 5 of 22

& White, LLC (“Askew”) as general counsel for the Chapter 7 Trustee. At some point

prior to February 2023, attorney Ronald Holmes began representing Appellant in the

reopened case, and he filed Amended Schedules on Appellant’s behalf, which were later

withdrawn. 16

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