Tennant v. Rojas (In Re Tennant)

318 B.R. 860, 2004 Bankr. LEXIS 2035, 2004 WL 3016432
CourtUnited States Bankruptcy Appellate Panel for the Ninth Circuit
DecidedDecember 10, 2004
DocketBAP No. CC-04-1119-MoPB, Bankruptcy No. ND 04-10081-RR
StatusPublished
Cited by110 cases

This text of 318 B.R. 860 (Tennant v. Rojas (In Re Tennant)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Appellate Panel for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tennant v. Rojas (In Re Tennant), 318 B.R. 860, 2004 Bankr. LEXIS 2035, 2004 WL 3016432 (bap9 2004).

Opinion

OPINION

MONTALI, Bankruptcy Judge.

Appellant and debtor Jeffrey Tennant (“Debtor”) appeals from the bankruptcy court’s order denying his motion to vacate the dismissal of his Chapter 13 case. The court originally dismissed Debtor’s Chapter 13 case sua sponte because he did not comply with Rule 1007(c) 1 , requiring the *864 filing of his statement of financial affairs within 15 days after the commencement of his case, and barred Debtor for 180 days from refiling another bankruptcy petition pursuant to Section 109(g)(1). Debtor contends that the court, following its local rule, automatically dismissed his case and imposed the sanction under Section 109(g)(1) without sufficient evidence of willful failure to comply with an order of the court. He argues that Sections 1307(c)(9) and 109(g)(1) and Rule 1017(c) require a proper motion served by the United States trustee and a hearing before his ease could be dismissed, and he requests that we invalidate Local Bankruptcy Rule 3015(b) — 1.

Although we have serious doubts whether Debtor could be barred by Section 109(g)(1) from refiling another petition in the absence of a finding of willful failure, we AFFIRM the bankruptcy court’s order denying Debtor’s motion to vacate the dismissal. The bankruptcy court itself lifted the bar against refiling pursuant to Section 109(g)(1) in the order on appeal and Debt- or did not timely appeal the bankruptcy court’s earlier order dismissing his Chapter 13 case with a refiling bar. Furthermore, the court’s denial of Debtor’s motion to vacate the dismissal was not an abuse of discretion.

I. STATEMENTS OF FACTS

On January 13, 2004, Debtor filed his voluntary Chapter 13 petition. Debtor did not file Schedules I and J, the Chapter 13 plan, and the Statement of Financial Affairs with his petition. 2 On the same day, the clerk of the court entered an “Order to Comply with Bankruptcy Rules 1007 and 3015(b) 3 and Notice of Intent to Dismiss Case under 11 U.S.C. § 109(g)(1)” (“Comply Order”), which directed Debtor to file the missing documents within 15 days or to move for an extension of time. The Comply Order states in its relevant part:

If YOU DO NOT COMPLY, in a timely manner with either of the above alternatives, the Court will:
• Dismiss your case without further notice; and
• Consider this a willful failure to abide by a court order within the meaning of 11 U.S.C. § 109(g)(1). This means that if you are an individual or a family farmer [11 U.S.C. § 109(g)(1) ], you will not be eligible to file another bankruptcy petition for 180 days. Unless an appropriate order of the Court is first obtained, even *865 if you manage to file another bankruptcy petition within 180 days from the date this order is entered, you will not be protected by the Bankruptcy Code’s automatic stay. Notwithstanding filing of this subsequent petition, the automatic stay will not prevent creditors from evicting you or foreclosing on and selling your property.

On January 26, 2004, Debtor filed the missing Chapter 13 plan, Summary of Schedules, Schedule I and J, and an amended petition, but he did not file the Statement of Financial Affairs. On February 3, 2004, the clerk of court issued an order dismissing Debtor’s case with a bar against refiling another bankruptcy petition for 180 days (“Dismissal Order”) without further notice or a hearing. The Dismissal Order states that Debtor failed to file documents required under Rule 1007(c) and that the court “considers this as a willful failure to abide by a court order within the meaning of 11 U.S.C. Section 109(g) and/or cause to dismiss the case within the meaning of 11 U.S.C. Section 707(a) and to vary the effect of 11 U.S.C. Section 349(a).” The Dismissal Order was a generated form that bore the name of the clerk of court, followed by “For The Court”. There is no indication in the record that the presiding bankruptcy judge ever determined or considered anything, let alone that there was a willful failure to abide by a court order. The Dismissal Order was entered on February 3, 2004, and Debtor did not appeal.

On February 23, 2004, beyond the 10-day time limit of Rule 9023(b), which would toll the time to appeal the Dismissal Order, Debtor filed a motion to vacate that order and to reinstate his Chapter 13 case. He contended: (1) the court’s procedure had not been in accordance with Section 1307(c)(9) and Rule 1017(c) because both had required a notice served by the United States trustee and a hearing before his case could have been dismissed; (2) he had no chance to prove that his failure to comply with the Comply Order had not been willful within the meaning of Section 109(g)(1); (3) instead, the court had apparently acted pursuant to Local Bankruptcy Rule 3015(b)-l of the United States Bankruptcy Court for the Central District of California (“L.B.R.3015(b)-l”) that had allowed an automatic dismissal of his case in conflict with Section 1307(c)(9) and Rule 1017(c). L.B.R. 3015(b)-l states:

If the chapter 13 schedules, statement and plan are not filed with the petition, the clerk shall thereupon issue an order notifying the debtor that, if the plan, schedules and statement are not filed within 15 days, the case shall be dismissed at that time with a 180-day bar to refiling, unless the court grants a motion to extend time filed within said 15 days.

Debtor filed with his motion a declaration of his attorney, Janet A. Lawson, Esq., stating that she intended, but failed to pick up and file, the missing Statement of Financial Affairs with the other documents. She declared that she had been under extreme pressure of work because she had taken over the law office of another attorney whose files had been neglected and who had died of a brain tumor.

On February 26, 2004, the bankruptcy court entered an order (“Refiling Order”), without a hearing, that Debtor “may refile a bankruptcy petition within 180 days of the dismissal of this case, but only if the petition is accompanied by a full filing fee, a complete set of schedules and Statement of Financial Affairs, and Chapter 13 plan, if applicable.” The court affixed a rubber stamp stating the foregoing upon a form of order submitted by Ms. Lawson.

Debtor filed a timely notice of appeal only to the Refiling Order; neither the *866 Chapter 13 trustee nor the United States trustee have appeared on this appeal.

II.ISSUES

1. Whether this appeal is moot.

2.

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318 B.R. 860, 2004 Bankr. LEXIS 2035, 2004 WL 3016432, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tennant-v-rojas-in-re-tennant-bap9-2004.