Stefan Joseph Lonce

CourtUnited States Bankruptcy Court, S.D. New York
DecidedMarch 14, 2025
Docket24-22606
StatusUnknown

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Bluebook
Stefan Joseph Lonce, (N.Y. 2025).

Opinion

UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK ------------------------------------------------ x

In re Chapter 13

Stefan Joseph Lonce, Case No. 24-22606 (CGM)

Debtor. -------------------------------------------------x

MEMORANDUM DECISION GRANTING THE UNITED STATES TRUSTEE’S MOTION FOR CONTEMPT

A P P E A R A N C E S :

United States Trustee WILLIAM K. HARRINGTON Leo O’Brien Federal Building 11A Clinton Avenue, Room 620 Albany, New York 12207 By: Alicia M. Leonhard

Attorney for Debtor MARC H. FRYBURG Law Office of M.H. Fryburg 35 Brook Street Croton on Hudson, NY 10520 CECELIA G. MORRIS UNITED STATES BANKRUPTCY JUDGE

Jurisdiction This Court has subject matter jurisdiction pursuant to 28 U.S.C. § 1334(a); 28 U.S.C. § 157(a); and the Standing Order of Reference signed by Chief Judge Loretta A. Preska dated January 31, 2012. This is a “core proceeding” under 28 U.S.C. § 157(b)(2).

Background On July 9, 2024 (“Petition Date”), Marc H. Fryburg (“Mr. Fryburg”) filed a Chapter 13 petition for relief in this court (“Court”) on behalf of Stefan Joseph Lonce

(“Debtor”). A hearing on confirmation of the Debtor’s Chapter 13 plan was initially scheduled for September 11, 2024. Mr. Fryburg failed to appear for the September 11, 2024 hearing, and the presiding judge, the Honorable Cecelia Morris (the

“Judge”) adjourned the hearing (the “Confirmation Hearing”) for October 9, 2024. See Notice of Adjournment of Hearing Re: Confirmation Hearing, 24-22606-cgm, ECF No. 28. Notice was sent to all parties in interest (including Mr. Fryburg via email and confirmed through the electronic filing system) listing the date, time, and

place of the adjourned Confirmation Hearing. See id. Mr. Fryburg failed to appear for the adjourned Confirmation Hearing—just like the first time.1

1 In fact, Mr. Fryburg failed to register for Zoom for both the initial confirmation hearing scheduled for September 11, 2024 and the adjourned Confirmation Hearing scheduled for October 9, 2024. On October 18, 2024, the chapter 13 trustee (“Chapter 13 Trustee”) filed a motion to dismiss (“Motion to Dismiss”) for failure to be examined at a section 341

meeting of the creditors, failure to make plan payments, and failure to file required documentation, among other things. See Mot. to Dismiss, No. 24-22606-cgm, ECF No. 34. Because of Mr. Fryburg’s repeated failure to appear in Court for scheduled

hearings, Mr. Fryburg was ordered to appear in person for the hearing on the Motion to Dismiss scheduled for December 4, 2024. See Order to Show Cause, No. 24- 22606-cgm, ECF No. 36 (directing Mr. Fryburg to appear in person at the December 4, 2024 hearing and show cause why he should not be sanctioned for his failure to

attend the Confirmation Hearing). At the December 4, 2024 hearing, Mr. Fryburg claimed he was “online” for the adjourned Confirmation Hearing. See Transcript of Hearing Held on 12/4/24,

No. 24-22606-cgm, ECF No. 45. The Court’s records confirm that Mr. Fryburg failed to register for Zoom for the adjourned Confirmation Hearing and no appearance by Mr. Fryburg (or any other representative of the Debtor) was made when the Debtor’s case was called at the adjourned Confirmation Hearing. At the

December 4, 2024 hearing, the Court granted the Motion to Dismiss but retained jurisdiction for further consideration of the order to show cause (“Order to Show Cause”), namely, for further confirmation of Mr. Fryburg’s claim that he was on

Zoom for the October 9, 2024 hearing. The Court adjourned the hearing on the Order to Show Cause to January 15, 2025, and explicitly and clearly directed Mr. Fryburg to appear in Court via Zoom on January 15, 2025. In fact, the Judge directed

Mr. Fryburg to appear in Court via Zoom on January 15, 2025 several times. See Transcript of Hearing Held on 12/4/24, No. 24-22606-cgm, ECF No. 45. Continuing the pattern in this case, Mr. Fryburg again failed to register or appear in Court via

Zoom on January 15, 2025, as ordered by the Court. On January 21, 2025, Mr. Fryburg filed a one-page letter with the Court (the “Letter”) alleging that he appeared at “a conference on zoom.com” on October 10, 2024. See Letter from Marc H. Fryburg, Debtor, to Hon. Cecelia Morris, Judge ¶ 1

(Jan. 21, 2025) (on file with the Court). It is undisputed that Mr. Fryburg did not appear at the adjourned Confirmation Hearing that was held on Zoom on October 9, 2024.2 The Court’s records confirm that Mr. Fryburg did not appear (and no

appearance by Mr. Fryburg or any representative of the Debtor was made) at the October 9, 2024 Confirmation Hearing; additionally, the Court’s records confirm that Mr. Fryburg did not register for Zoom for the Confirmation Hearing. It is also undisputed that Mr. Fryburg did not appear at the January 15, 2025 hearing: The

Court’s records confirm that Mr. Fryburg did not register for Zoom for the January

2 Mr. Fryburg may have appeared at the adjourned section 341 meeting that was held (but did not go forward) on Zoom on October 10, 2024. 15, 2025 hearing, and no appearance by Mr. Fryburg was noted after his case was called more than once over a three-and-a-half period.

Instead of defending his actions with meritorious justifications, the Letter attempts to place the blame for Mr. Fryburg’s repeated nonappearance at scheduled Court hearings on the Chapter 13 Trustee or on the Judge’s chambers. See id. The

Letter complains that Mr. Fryburg “never heard back from anyone in [the Judge’s] chambers about the results of th[e] investigation [regarding Mr. Fryburg’s appearance at the October 9, 2024 hearing] which is critical with regard to the sanctions.” Id. While confirmation of Mr. Fryburg’s nonappearance at the October

9, 2024 hearing may have been a factor in the determination of sanctions, informing Mr. Fryburg of the same is not critical. The Letter maintains that “Mr. Frost should have known better” because “the contention by Mr. Frost and those acting on his

behalf that [Mr. Fryburg] didn’t appear on Oct. 10, 2024 is factually false.” Id. ¶ 3. It is Mr. Fryburg who “should have known better” that his appearance on October 10, 2024 was never in question, but rather, his appearance on October 9, 2024 for the adjourned Confirmation Hearing was the appearance in question. Mr. Fryburg,

a practicing attorney, should know that a confirmation hearing is not the same thing as a section 341 meeting of the creditors. In Mr. Fryburg’s own words as set forth in the Letter, “[he] made some mistakes in this case, and in a previous bankruptcy

case that [he] filed on Mr. Lonces behalf (which was dismissed).” Id. ¶ 2. On January 25, 2025, the United States trustee (the “UST”) filed a motion for contempt (“Motion for Contempt”) seeking to hold Mr. Fryburg in civil contempt

for failure to abide by Court orders relating to his appearance at scheduled Court hearings, and for sanctions in the form of attorneys’ fees. See Mot. for Contempt, No. 24-22606-cgm, ECF No. 44. The hearing on the Motion for Contempt was

scheduled for March 12, 2025 (“Contempt Hearing”). See Notice of Adjournment of Hearing, No. 24-22606-cgm, ECF No. 48. On March 11, 2025, at 10:56 p.m. (prevailing Eastern time), Mr. Fryburg filed a two-page affirmation in opposition to the Motion for Contempt (the “Opposition”). See Aff. in Opp., No. 24-22606-cgm,

ECF No. 52. The Opposition claims Mr.

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