Sumida & Tsuchiyama, LLLP v. Kotoshirodo (In Re Kyung Sook Kim)

433 B.R. 763, 2010 U.S. Dist. LEXIS 60129, 2010 WL 2485938
CourtDistrict Court, D. Hawaii
DecidedJune 16, 2010
DocketCiv. 10-00059 JMS/KSC
StatusPublished

This text of 433 B.R. 763 (Sumida & Tsuchiyama, LLLP v. Kotoshirodo (In Re Kyung Sook Kim)) is published on Counsel Stack Legal Research, covering District Court, D. Hawaii primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sumida & Tsuchiyama, LLLP v. Kotoshirodo (In Re Kyung Sook Kim), 433 B.R. 763, 2010 U.S. Dist. LEXIS 60129, 2010 WL 2485938 (D. Haw. 2010).

Opinion

ORDER GRANTING APPELLEE RONALD K. KOTOSHIRODO’S MOTION TO DISMISS APPEAL

J. MICHAEL SEABRIGHT, District Judge.

I. INTRODUCTION

This bankruptcy court appeal is the culmination of a contentious dispute between *768 Appellee bankruptcy Trustee Ronald K. Kotoshirodo (“Trustee”) and Appellants Sumida & Tsuchiyama, LLLP and Kevin P.H. Sumida (collectively, “Sumida”), who represented Debtor Kyung Sook Kim (“Debtor”) in an adversary proceeding, and who were subsequently sanctioned by the bankruptcy court. Currently before the court is Trustee’s Motion to Dismiss, in which it argues, among other things, that Sumida’s appeal is untimely and that he does not have standing to raise certain arguments. Based on the following, the court agrees and GRANTS Trustee’s Motion to Dismiss.

II. BACKGROUND

Sumida appeals six separate orders and/or decisions and/or judgments of the bankruptcy court. 1 To provide context for these orders, the court provides the following description of the bankruptcy court proceedings relevant to Sumida’s appeal.

On March 27, 2006, Debtor filed a voluntary petition for Chapter 11 bankruptcy. On April 17, 2006, the bankruptcy court granted Debtor’s request to employ Sumi-da as her special counsel in an adversary proceeding in which Debtor challenged the non-judicial foreclosure sale of certain real property she owned.

On August 10, 2006, the bankruptcy court granted Debtor leave to convert her bankruptcy case to Chapter 7, and subsequently appointed Trustee. On November 14, 2006, the bankruptcy court entered a discharge of Debtor.

Trustee subsequently initiated two separate adversary proceedings — the first, 07-AD-90062, was against Debtor and her husband to revoke Debtor’s discharge and require them to turn over any property that they had not properly disclosed, and the second, 08-AD-90049, was against Su-mida for his failure to disclose relevant information to the bankruptcy court and Trustee.

In April 2009, the parties in both adversary actions entered a Settlement, Release and Indemnity Agreement in which they agreed to jointly stipulate to dismiss both adversary actions with prejudice. Tr. Ex. A ¶ 7. In 07-AD-90062, the bankruptcy court entered the Stipulation and Order, Dismissal with Prejudice on May 11, 2009. Tr. Ex. B. In 08-AD-90049, however, dismissal was not as smooth because Sumida failed to execute a stipulation to dismiss and instead filed a motion for leave to file an amended answer to include a third-party complaint. Tr. Ex. C. In response, Trustee filed a counter-motion to dismiss the case and for sanctions. Tr. Ex. D. On June 24, 2009, the bankruptcy court entered its first order subject to this appeal — an “Order on Matters Set for Hearing on June 24, 2009” (the “June 24, 2009 Order”)' — which denied Sumida’s motion to file an amended answer, granted Trustee’s countermotion to dismiss, and denied the request for sanctions without prejudice. Tr. Ex. E.

Back in the main bankruptcy action, on May 29, 2009, Sumida filed a motion to remove Trustee and Trustee’s attorney on the basis that Trustee had, among other things, allegedly caused Debtor’s estate to breach the settlement agreement. Tr. Ex. H. On July 14, 2009, the bankruptcy court entered its second order subject to this appeal — a “Memorandum of Decision on Motion to Remove Trustee and for Other Relief’ (the “July 14, 2009 Memorandum”) — -which denied Sumida’s Motion to Remove Trustee and denied Trustee’s request for sanctions. Tr. Ex. J.

*769 On August 10, 2009, Trustee filed a Final Application for Compensation/Reimbursement for Expenses (“Final Application”), Tr. Ex. K, and on August 17, 2009, Sumida filed an Opposition. Tr. Ex. L. On October 1, 2009, Trustee filed two separate motions for sanctions against Sumida, Tr. Exs. M, N, and Sumida countered by seeking sanctions against Trustee. Tr. Ex. O. During the November 23, 2009 hearing on these motions, the bankruptcy court orally entered its third order subject to this appeal (the “November 23, 2009 Oral Order”), which approved the Final Application, denied Sumida’s countermotion for sanctions, and took Trustee’s motions for sanctions under advisement. Tr. Ex. P at 11-12.

On January 14, 2010, the court entered its fourth order subject to this appeal' — a “Memorandum of Decision on Motions for Sanctions” (the “January 14, 2010 Memorandum”) — in which it denied Sumida’s motion for sanctions and granted Trustee’s motion for sanctions against Sumida. Tr. Ex. Q. In granting Trustee’s motion for sanctions, the court ordered Trustee to “file a declaration and supporting evidence of the reasonable amount of fees and costs ... within fourteen days from the entry of this decision. Mr. Sumida will have seven days after the trustee’s filing to file a response.” Id. at 19.

Pursuant to the January 14, 2010 Memorandum, Trustee filed his Declaration and supporting evidence on January 18, 2010, and Sumida filed his Response on January 25, 2010. Tr. Exs. R, S. On February 1, 2010, the bankruptcy court entered its final two orders subject to appeal — (1) a “Judgment on Motion for Sanctions” (the “February 1, 2010 Judgment on Sanctions”), Tr. Ex. T, and (2) an “Order on Application for Compensation/Reimbursement for Expenses” (the “February 1, 2010 Order on Compensation”). Tr. Ex. U.

The six orders discussed above form the basis of Sumida’s appeal. Specifically, on January 27, 2010, Sumida filed a Notice of Appeal from the following orders:

1. The June 24, 2009 Order;
2. The July 14, 2009 Memorandum;
3. The November 23, 2009 Oral Order; and
4. The January 14, 2010 Memorandum.

Tr. Ex. V.

On February 18, 2010, Sumida filed an Amended Notice of Appeal, stating that he also appeals:

5. The February 1, 2010 Judgment on Sanctions; and
6. The February 1, 2010 Order on Compensation.

Tr. Ex. Q.

On April 8, 2010, Trustee filed his Motion to Dismiss the appeal for lack of jurisdiction. Sumida filed his Opposition on May 7, 2010, and Trustee filed his Reply on May 21, 2010. A hearing was held on June 7, 2010. At the hearing, the court permitted Sumida to submit a supplemental memorandum providing legal authority on the separate document rule by June 7, 2010, and Trustee submitted a responsive memorandum on June 8, 2010.

III. ANALYSIS

Trustee argues that Sumida’s appeal should be dismissed because, among other reasons, Sumida failed to timely appeal some of the bankruptcy court’s orders, and Sumida does not have standing to raise other issues on appeal. The court addresses each of these arguments in turn.

A. Timeliness of Appeal

A party to a bankruptcy action must timely file a notice of appeal after entry of the order being appealed. See Fed. R. Bankr.P.

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433 B.R. 763, 2010 U.S. Dist. LEXIS 60129, 2010 WL 2485938, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sumida-tsuchiyama-lllp-v-kotoshirodo-in-re-kyung-sook-kim-hid-2010.