Teresa Marie Dawald

CourtUnited States Bankruptcy Court, D. Oregon
DecidedApril 13, 2023
Docket11-32286
StatusUnknown

This text of Teresa Marie Dawald (Teresa Marie Dawald) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, D. Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Teresa Marie Dawald, (Or. 2023).

Opinion

API To, Clerk, U.S. Bankruptcy Court

Below is an opinion of the court.

vr C. McKITTRICK U.S. Bankruptcy Judge

UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF OREGON Inre Case No. 11-32286-pcem13 TERESA MARIE DAWALD, MEMORANDUM DECISION! Debtor.

Linear Mortgage, LLC (Linear) filed a motion seeking relief under Fed. R. Civ. P. 60(b) from the court’s order reopening this chapter 13 case. For the reasons explained below, the court will enter an order denying Linear’s motion. Facts Teresa M. Dawald (Debtor) filed a chapter 13 petition in March of 2011. Debtor owned real property located at 14625 SE Taylor Court in Portland (the Property).

This disposition is specific to this case and is not intended for publication or to have a controlling effect on other cases. It may, however, be cited for whatever persuasive value it may have. 2 Unless otherwise noted, all references to chapters and sections are to the Bankruptcy Code, 11 U.S.C. § 101, et. seq.

Page 1 -MEMORANDUM DECISION

Shortly after confirmation of her 36-month chapter 13 plan, Debtor filed a Notice of Motion to Value Property Pursuant to 11 U.S.C. § 506 and Avoid Wholly Unsecured Lien in a Chapter 13 Case (the § 506 Motion).3 The § 506 Motion sought to avoid a lien on the Property that was, at the time, held by Old Republic Equity Credit Services, Inc., Servicing Company for

BAC Home Servicing (Old Republic). In September of 2011, the court entered an order avoiding Old Republic’s lien.4 The order provides “that if this case is dismissed or converted to one under Chapter 7, the lien avoided by this order shall be reinstated.”5 In August of 2014, the chapter 13 trustee filed a motion to dismiss Debtor’s chapter 13 case for missed plan payments in the total amount of $258.6 On October 8, 2014, the court dismissed Debtor’s case for missed plan payments after the chapter 13 trustee filed a statement that Debtor had not brought her plan payments current or requested a hearing on the motion to dismiss.7 In 2017, Old Republic assigned the debt owed by Debtor and its security interest in the Property to Linear.8 Debtor thereafter made several payments to Linear but ultimately defaulted.

Because Linear was threatening foreclosure, Debtor undertook efforts to refinance the debt.

3 ECF No. 19.

4 ECF No. 23.

5 Id.

6 ECF No. 50.

7 ECF No. 53.

8 Exhibit 1. During early 2022, Debtor was directly communicating via email with Jason Crawford (Crawford), a portfolio manager with Linear, about the debt and her attempts to refinance.9 Crawford was communicating with Debtor’s mortgage broker via email during this same period.10

On April 19, 2022, Debtor, acting pro se, filed a motion to reopen her chapter 13 case and set aside dismissal (the Motion to Reopen).11 In the letter attached to the Motion to Reopen, Debtor states that her attorney never told her about the trustee’s motion to dismiss based on the $258 plan payment shortfall and she thought her chapter 13 case completed with a discharge. On April 20, 2022, the court entered an Order Setting Aside Dismissal, Reopening Case if Closed, and Fixing Time to File Motion to Reconsider (the Reopening Order).12 The Reopening Order provides: The court may reconsider the entry of this order if an interested party files both (a) a motion for reconsideration, setting forth the specific grounds for such motion, within 21 days of the "Filed" date above, with the Clerk of Court, 1050 SW 6th Ave. #700, Portland, OR 97204, and (b) attaches a certification that copies of the motion were contemporaneously served on the debtor(s), Trustee, U.S. Trustee, and their respective attorneys.

No motion for reconsideration was timely filed.

9 Exhibit 4.

10 Exhibit H.

11 Exhibit B.

12 Exhibit C. On April 22, 2022, Richard Parker (Parker or Debtor’s counsel) filed a notice of appearance on behalf of Debtor.13 On the same day, he sent Crawford an email notifying him that the court reopened Debtor’s case on April 20, 2022.14 The email recites, and Linear does not dispute, that Parker attached the Reopening Order to his email.15 Linear did not receive the

Motion to Reopen or the Reopening Order by mail like Debtor’s other creditors because Linear was not included on the bankruptcy case mailing matrix. On May 16, 2022, Linear contacted outside bankruptcy counsel about this matter.16 On August 31, 2022, the chapter 13 trustee made a docket entry requesting entry of a discharge order because Debtor had completed her plan payments.17 On September 1, 2022, the court generated and docketed a notice informing Debtor that she had to complete certain additional requirements within 21 days for the court to enter a discharge order.18 Debtor completed those requirements that same day.19 On September 22, 2022, Linear filed an objection to the Motion to Reopen (the Objection) and a declaration of Jason Crawford in support of that motion (the First Crawford Declaration). Debtor filed a response,20 which was supported by declarations of Debtor and her

13 ECF No. 60. The attorney who represented Debtor prior to the reopening of the case has retired from the practice of law.

14 ECF No. 74, Declaration of Richard Parker, Exhibit 1.

15 Id.

16 Exhibit F.

17 Exhibit A (ECF No. 66). 18 Id. (ECF No. 67).

19 Id. (ECF No. 68).

20 ECF No. 73. counsel.21 Linear then filed a Supplemental Declaration of Jason Crawford (the Second Crawford Declaration).22 The court held a hearing on the Objection and determined that, because the Reopening Order had been entered and the 21-day period for reconsideration had expired, the Objection was

untimely. The court entered an order overruling the Objection “without prejudice to any further motions on the same issue.”23 On December 2, 2022, Linear filed the motion that is the subject of this memorandum decision – Creditor Linear Mortgage, LLC’s Motion for Relief from a Judgment or Order (the Rule 60 Motion).24 Debtor filed a response in opposition.25 Analysis Linear moves for relief from the Reopening Order under Fed. R. Civ. P. 60, made applicable to bankruptcy cases with certain exceptions not applicable here by Fed. R. Bankr. P. 9024. Rule 60 provides: (b) Grounds for Relief from a Final Judgment, Order, or Proceeding. On motion and just terms, the court may relieve a party or its legal representative from a final judgment, order, or proceeding for the following reasons:

(1) mistake, inadvertence, surprise, or excusable neglect;

21 ECF No. 74, 75.

22 ECF No. 81.

23 ECF No. 83.

24 ECF No. 85.

25 ECF No. 86. (2) newly discovered evidence that, with reasonable diligence, could not have been discovered in time to move for a new trial under Rule 59(b);

(3) fraud (whether previously called intrinsic or extrinsic), misrepresentation, or misconduct by an opposing party;

(4) the judgment is void;

(5) the judgment has been satisfied, released, or discharged; it is based on an earlier judgment that has been reversed or vacated; or applying it prospectively is no longer equitable; or

(6) any other reason that justifies relief. Fed. R. Civ. P. 60(b). Linear relies on subsections (3) and (6) of Rule 60(b).26 I.

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Teresa Marie Dawald, Counsel Stack Legal Research, https://law.counselstack.com/opinion/teresa-marie-dawald-orb-2023.