Szanto v. Bank of New York

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 SOUTHERN DISTRICT OF CALIFORNIA 10 11 Peter Szanto, Case No.: 23cv95-JO-BGS

12 Debtor-Appellant, ORDER AFFIRMING 13 v. BANKRUPTCY COURT 14 Bank of New York, 15 Creditor-Appellee. 16 17 18 19 Debtor-Appellant Peter Szanto filed this action appealing the bankruptcy court’s 20 January 4, 2023 order denying his motion to vacate a trustee’s sale and request for 21 expedited oral argument. Dkt. 1. For the following reasons, the Court affirms the 22 bankruptcy court’s order. 23 On July 22, 2022, the bankruptcy court dismissed Szanto’s Chapter 11 bankruptcy 24 for improper venue. See In re Peter Szanto, Case No. 22-01558-CL11 (Bankr. S.D. Cal.), 25 Dkt. 82. Despite the dismissal of his bankruptcy case, on December 27, 2022, Szanto filed 26 a motion in the bankruptcy court to vacate a trustee’s sale of the property located at 4484 27 Dulin Place, Oceanside, CA 92057 (the “Property”), and requested expedited oral 28 argument to address this issue. Dkt. 7, Exs. A–B. On January 4, 2023, the bankruptcy 1 || court issued an order denying these motions for lack of jurisdiction. Dkt. 7, Ex. C. Because 2 had just dismissed Szanto’s underlying bankruptcy case, the bankruptcy court found that 3 || it did not have jurisdiction to determine rights to the Property, which was no longer part of 4 ||a bankruptcy estate. Dkt. 7, Ex. C (citing 28 U.S.C. §§ 1334(e)(1), (b)). On January 18, 5 || 2023, Szanto filed a notice of appeal of the bankruptcy court’s order to this Court. Dkt. 1. 6 District courts have jurisdiction to hear appeals from final judgments, orders, and 7 decrees of bankruptcy judges. 28 U.S.C. § 158. “The bankruptcy court’s findings of fact 8 ||are reviewed for clear error, while its conclusions of law are reviewed de novo.” Jn re 9 || Strand, 375 F.3d 854, 857 (9th Cir. 2004) (citing Galam v. Carmel (In re Larry's Apt., 10 || Z.L.C), 249 F.3d 832, 836 (9th Cir. 2001)). 11 Upon reviewing the record, the Court finds that the bankruptcy court did not err in 12 denying Szanto’s motion to vacate the trustee’s sale of the Property and declining to hold 13 expedited oral argument on this issue. Dkt. 7, Ex. C. Once the bankruptcy court dismissed 14 ||Szanto’s underlying bankruptcy case, it no longer had jurisdiction over the property 15 |/included in the terminated bankruptcy estate; therefore, it could not issue orders regarding 16 || property involved in the bankruptcy or otherwise affecting the merits of the case. See 28 17 U.S.C. § 1334(e)(1); McQuaid v. Owners of NW 20 Real Estate (In re Federal Shopping 18 || Way, Inc.), 717 F.2d 1264, 1272 (9th Cir. 1983) (bankruptcy court only has jurisdiction to 19 || determine rights to a property that is part of a bankruptcy estate). It was therefore correct 20 declining to issue further orders after its dismissal of the bankruptcy case. Accordingly, 21 Court AFFIRMS the bankruptcy court’s January 4, 2022 order and DIRECTS the Clerk 22 || to close the case. 23 IT IS SO ORDERED. 24 || Dated: June 15, 2023 25 26 Ho orgbfe Tinsook Ohta 27 United States District Judge 28