Peter Allan Wizenberg v. Howard Wizenberg

CourtCourt of Appeals for the Eleventh Circuit
DecidedDecember 15, 2020
Docket20-10641
StatusUnpublished

This text of Peter Allan Wizenberg v. Howard Wizenberg (Peter Allan Wizenberg v. Howard Wizenberg) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Peter Allan Wizenberg v. Howard Wizenberg, (11th Cir. 2020).

Opinion

USCA11 Case: 20-10641 Date Filed: 12/15/2020 Page: 1 of 20

[DO NOT PUBLISH]

IN THE UNITED STATES COURT OF APPEALS

FOR THE ELEVENTH CIRCUIT ________________________

No. 20-10641 Non-Argument Calendar ________________________

D.C. Docket No. 0:19-cv-61338-RKA Bkcy. Adv. No. 18-01019-PGH Bkcy No. 17-23522-PGH

In re: PETER ALLAN WIZENBERG,

Debtor.

__________________________________________________________________

PETER ALLAN WIZENBERG,

Plaintiff-Appellant,

versus

HOWARD WIZENBERG,

Defendant-Appellee.

________________________

Appeal from the United States District Court for the Southern District of Florida ________________________

(December 15, 2020) USCA11 Case: 20-10641 Date Filed: 12/15/2020 Page: 2 of 20

Before WILSON, JORDAN, and GRANT, Circuit Judges.

PER CURIAM:

Anna Wizenberg’s death in 2010 sparked a long and bitter intrafamily dispute

between her sons, Peter and Howard Wizenberg. What started as a probate case and

then moved into bankruptcy court is now before us as an appeal of a district court

order imposing sanctions under 28 U.S.C. § 1927 against Peter, a pro se debtor. The

district court’s order adopted the bankruptcy court’s report, which recommended

sanctioning him for his conduct in an adversarial proceeding filed by his brother

Howard, who is a creditor in the bankruptcy case.

Peter, a member of the Florida bar who holds himself out as a bankruptcy

attorney, argues that the district court abused its discretion in sanctioning him. The

conduct that led to the sanctions included, among other things, his repeated

“shushing” of opposing counsel during a deposition; his submission of lengthy and

superfluous filings, one in which he wrote a nonsensical haiku; his argument that the

bankruptcy court lacked subject-matter jurisdiction to preside over a dispute

explicitly provided for in the Bankruptcy Code; and his assertion that he did not

know what a privilege log was despite being a barred attorney.

In addition, Peter contends that the bankruptcy court was required to conduct

an evidentiary hearing before sanctioning him, and he challenges the time entries

that the bankruptcy court cited to determine the sanctions amount in its report and

2 USCA11 Case: 20-10641 Date Filed: 12/15/2020 Page: 3 of 20

recommendation. Howard responds that Peter waived both these arguments by

failing to raise either of them before the bankruptcy court. He further asserts that

the sanctions were warranted. For reasons set out below, we affirm.

I

Anna Wizenberg (we refer to her as “Ann” because that is what her sons called

her in their disputes), owned property and other assets at the time of her death, and

a probate proceeding was initiated shortly thereafter. See In re: Anna Wizenburg,

No. 2010CP002092 (Fla. Circuit Ct.), Docs. 1, 2, 3. Her son Peter was initially

appointed as personal representative of Ann’s estate, but several months later, his

brother Howard filed a petition to remove him. Id., Doc. 22. This request was

granted in February of 2017, see id., Doc. 193, following two separate state court

disputes between Peter and Howard. See Peter Wizenberg v. Howard Wizenberg,

No. 2012CA005131 (Fla Circuit Ct.); Howard Wizenberg v. Peter Wizenberg, No.

2013CA002460 (Fla. Circuit Ct.). There was a contempt hearing scheduled in the

probate case for November of 2017, but before it was held, Peter filed for Chapter 7

bankruptcy protection, which automatically stayed all state court proceedings

against him. See 11 U.S.C. § 362.

In his Chapter 7 petition, Peter listed Howard as holding a nonpriority

unsecured claim that was disputed, contingent, and arose from litigation. Howard

then filed an adversary proceeding in which he sought to declare Peter’s debt to him

3 USCA11 Case: 20-10641 Date Filed: 12/15/2020 Page: 4 of 20

nondischargeable under 11 U.S.C. § 523(a)(4), which exempts from discharge debt

“for fraud or defalcation while acting in a fiduciary capacity, embezzlement, or

larceny,” and under 11 U.S.C. § 523(a)(6), which exempts from discharge debt “for

willful and malicious injury by the debtor to another entity.” Howard alleged in the

adversary complaint that Peter failed to distribute estate funds in accordance with

the “Ann Wizenberg Revocable Trust Agreement” and that he appropriated property

from Ann’s estate for his own personal use.

Peter filed a motion to dismiss, which the bankruptcy court denied. Howard

and Peter filed cross-motions for summary judgment, which the bankruptcy court

also denied.

Then, Peter filed a 69-page motion to dismiss Howard’s amended complaint

for lack of subject-matter jurisdiction. His argument was that Howard’s adversary

complaint “seeks nondischargeability of a nonexistent debt, a ‘phantom debt[,]’[ ]

an alleged debt” and that “no such debt has ever existed or exists or even possibly

could have ever existed.”

Howard responded to the motion to dismiss on the main bankruptcy case

docket and moved for sanctions under 28 U.S.C. § 1927, arguing that “[o]ther than

to needlessly increase the costs of litigation” there was “no good faith basis” for

Peter to take the position that the bankruptcy court lacked subject-matter jurisdiction.

4 USCA11 Case: 20-10641 Date Filed: 12/15/2020 Page: 5 of 20

Peter then filed a 153-page motion for reconsideration of the bankruptcy

court’s order denying him summary judgment, including in it accusations of

domestic violence against Howard, as well as other immaterial details about family

life. The filing concluded with what the bankruptcy court would later describe as

“pointless poetry”—the haiku, which read: “All know: talk is cheap; Liars can claim

anything; No evidence?! Balk!” The bankruptcy court denied the motion for

reconsideration.

Howard deposed Peter on August 6, 2018, and Peter deposed Howard the next

day. Throughout Howard’s deposition, Peter engaged in several hostile exchanges

with Howard and opposing counsel. Peter asked repetitive and unprofessional

questions, told opposing counsel to “[s]hush, shush, shush,” and bickered with

opposing counsel on the record. The next day, Howard moved the bankruptcy court

to compel Peter to produce a privilege log, and said that when Peter was deposed,

he testified to the existence of relevant and responsive documents that he did not

produce based on attorney-client privilege. Howard said that Peter had not produced

a privilege log and that he claimed not to know what one was. The bankruptcy court

granted Howard’s motion and ordered Peter to produce a privilege log detailing

which documents and communications he thought were protected.

Several months later, Howard supplemented his motion for sanctions, alleging

that when Peter’s wife was deposed, Howard’s counsel questioned her for

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