Trembley v. First Security Mortgage (In re Cardoza)

111 B.R. 906, 1990 Bankr. LEXIS 439
CourtUnited States Bankruptcy Court, S.D. California
DecidedFebruary 12, 1990
DocketAdv. No. 89-90010-B7; Related Bankruptcy No. 88-03473-B7
StatusPublished
Cited by2 cases

This text of 111 B.R. 906 (Trembley v. First Security Mortgage (In re Cardoza)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Trembley v. First Security Mortgage (In re Cardoza), 111 B.R. 906, 1990 Bankr. LEXIS 439 (Cal. 1990).

Opinion

ORDER ON MOTION FOR RECONSIDERATION

PETER W. BOWIE, Bankruptcy Judge.

On January 6, 1989 Plaintiff Trembley filed an adversary complaint styled “Complaint to Determine Validity, Priority and Extent of Liens and Other Interests in Property, for Damages and to Determine Dischargeability of Debt, and Demand for Jury Trial.” Named as defendants were the debtors and many others.

The essence of the complaint is that Trembley asserts he was part owner of a piece of property with the debtors. Tremb-ley alleges that the debtors and others forged his name to a quit claim deed transferring his interest in the property to the debtors. Among the other defendants is Walter L. Carpenter who is alleged to have acknowledged the forged signature on the [908]*908quit claim deed in his capacity as a notary public.

The Third Claim in the complaint is asserted directly against Mr. Carpenter for his alleged actions as the notary on the quit claim deed. In addition, Trembley sues Does 46 through 50, who are alleged to be “insurance corporations who had executed their official bonds as surety for Mr. Carpenter. ...”

On February 3, 1989 Trembley filed an amendment to the complaint naming Western Surety Company as Doe 46. On February 6, 1989 Anthony Erbacher, as attorney for Walter Carpenter, filed Carpenter’s verified answer to the complaint. On February 28, 1989 Franklin Geerdes, as attorney for Western Surety Company, filed Western Surety’s answer. In addition, on March 1,1989 Western Surety filed a cross-complaint against Walter Carpenter for reimbursement under California law if Western Surety is held liable on its bond.

On April 4, 1989 Attorney Geerdes, on behalf of his client, Western Surety, filed and served on all parties a document styled “Suggestion of Death upon the Record Under Rule 25(a)(1).” The document asserts that Western Surety is a party to the proceeding, and gives notice that Walter Carpenter died March 12, 1989. A copy of the registered death certificate was attached as an exhibit. The death certificate, in pertinent part, sets out the name, relationship and address of the “informant” as “ROB MOTTA; EXECUTRIX 1520 TYLER AVENUE # 3 SAN DIEGO, CA 92103”.

Subsequently, Mr. Erbacher filed an Amended Answer for Mr. Carpenter, reflecting that Mr. Carpenter was deceased, and conforming the answer to District Court Local Rule 110-7, as this Court had required.

On August 14, 1989 Mr. Geerdes filed a motion on behalf of Western Surety to dismiss Trembley’s Third Claim on the ground that more than 90 days had elapsed from the filing and service of the suggestion of death without any motion for substitution having been made. Western Surety invoked the provisions of Rule 25(a), Fed.R.Civ.P., which is made applicable to bankruptcy proceedings by Bankruptcy Rule 7025. The motion was noticed for hearing for September 15, 1989.

On September 8, 1989 Trembley caused to be filed a document styled “Ex-parte Petition for Leave to Proceed Against Walter L. Carpenter in the Name of the Estate of Walter L. Carpenter on an Insured Claim Pursuant to Probate Code Section 709.1 and Section 721.” On September 15, 1989 the hearing on Western Surety’s motion was held and the motion was granted. On September 18, 1989 this Court denied Trembley’s ex parte motion.

Substantial time elapsed while the order dismissing the third claim was being drafted and circulated among counsel for approval. Ultimately, an order was filed and entered on October 24, 1989. On November 3, 1989 Trembley timely noticed for hearing on December 18 his motion for reconsideration of the order granting the motion to dismiss. The essential premise of the motion for reconsideration was that Trembley believed that the Court had not fully considered his arguments in opposition to the motion because his opposition had been returned to his counsel by the Clerk’s Office because the pleading did not conform to the rules of this district.

The motion for reconsideration was heard on December 18, 1989 and was taken under submission. This Court has jurisdiction of this matter under 28 U.S.C. § 1334 and General Order 312-D of the United States District Court for the Southern District of California. This is a core proceeding under 28 U.S.C. § 157(b)(2)(A), (O).

The essence of Trembley’s position is that the decision of the United States Court of Appeals for the District of Columbia Circuit in Rende v. Kay, 415 F.2d 983 (1969) “remains controlling on the construction and interpretation of F.R.Civ.P. 25(a)(1). Mr. Geerdes’ suggestion did not trigger the 90-day time period.” In the alternative Trembley asks for an enlargement of time under Rule 6, F.R.Civ.P. in which to seek a substitution for Mr. Carpenter.

[909]*909In this Court’s view, reliance on Rende v. Kay is misplaced. In Rende, suit was filed by plaintiffs Rende against defendant Kay for personal injuries, including those of a minor. Thereafter, Kay died. The attorney Kay had hired to defend the action filed a suggestion of death and gave notice to the plaintiff’s attorney. Seven or eight months later, the attorney hired by Kay “moved in his own name to dismiss the action ...” for failure of plaintiffs to substitute for the decedent. 415 F.2d at 984. The D.C. Circuit quoted the Committee Notes on the 1963 revision to Rule 25. They emphasized one part in particular:

If a party or the representative of the deceased party desires to limit the time within which another may make the motion [to substitute], he may do so by suggesting the death upon the record.

415 F.2d at 985. The court thereafter stated:

Although the attorney for the defendant was retained to “represent” the deceased as his counsel, he is not a person who could be made a party, and is not a “representative of the deceased party” in the sense contemplated by Rule 25(a)(1).

Id. Because Kay’s attorney was neither a party nor a representative of the deceased party, he was not one of the persons permitted by Rule 25 to make a suggestion of death on the record which was sufficient to trigger the 90 day period for bringing a motion to substitute.

On its facts, Rende v. Kay does not apply to the case at bar. In the instant case, the suggestion of death was not filed by Mr. Erbacher, counsel hired by Mr. Carpenter before his death. Instead, the suggestion was filed by Western Surety, a party, through its counsel Mr. Geerdes. As a party, Western Surety is clearly authorized to make the suggestion of death under Rule 25, as even the D.C. Circuit recognized in Rende v. Kay. Al-Jundi v. Rockefeller, 88 F.R.D. 244, 246 (W.D.N.Y.1980); National Equipment Rental v. Whitecraft Unlimited, 75 F.R.D. 507, 510 (E.D.N.Y.1977); In re Klein, 36 B.R. 390, 392-393 (Bankr.E.D.N.Y.1984).

Trembley also argues that Western Surety’s suggestion of death was deficient because it did not include the name and address of the representative of the estate who could be substituted for the decedent. It is true that the court in Rende v. Kay stated:

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Brown v. County of Mariposa
E.D. California, 2021
In re MGM Mirage Securities Litigation
282 F.R.D. 600 (D. Nevada, 2012)

Cite This Page — Counsel Stack

Bluebook (online)
111 B.R. 906, 1990 Bankr. LEXIS 439, Counsel Stack Legal Research, https://law.counselstack.com/opinion/trembley-v-first-security-mortgage-in-re-cardoza-casb-1990.