U.S. Trustee v. Lebbos (In Re Lebbos)

439 B.R. 154, 2010 U.S. Dist. LEXIS 110588, 2010 WL 3942143
CourtDistrict Court, E.D. California
DecidedOctober 6, 2010
DocketCIV. S-09-1252 LKK
StatusPublished
Cited by3 cases

This text of 439 B.R. 154 (U.S. Trustee v. Lebbos (In Re Lebbos)) is published on Counsel Stack Legal Research, covering District Court, E.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
U.S. Trustee v. Lebbos (In Re Lebbos), 439 B.R. 154, 2010 U.S. Dist. LEXIS 110588, 2010 WL 3942143 (E.D. Cal. 2010).

Opinion

*157 ORDER

LAWRENCE K. KARLTON, Senior District Judge.

This is an appeal from the bankruptcy court, in which the debtor/appellant appeals two orders. The first order denied debtor’s consolidated motion to transfer venue, dismiss her own petition, and re-cuse the bankruptcy judge. The second order entered judgment, after trial, denying the discharge of debtor’s debts. The court decides the appeal on the papers. For the reasons stated below, the appeal is denied and the orders of the bankruptcy court are affirmed.

I. STANDARD OF REVIEW

“The bankruptcy court’s findings of fact are reviewed for clear error, while its conclusions of law are reviewed de novo.” In re Strand, 375 F.3d 854, 857 (9th Cir. 2004) (citing Galam v. Carmel (In re Larry’s Apt., L.L.C.), 249 F.3d 832, 836 (9th Cir.2001)); see also In re Greene, 583 F.3d 614, 618 (9th Cir.2009) (district courts and circuit courts use the same standard of review in reviewing bankruptcy court decisions), Fed. R. Bankr.P. 8013. ‘When there are two permissible views of the evidence, the trial judge’s choice between them cannot be clearly erroneous.” In re Baldwin Builders, 232 B.R. 406, 410 (9th Cir. BAP 1999). The court must accept the bankruptcy court’s findings of fact unless “the court is left with the definite and firm conviction that a mistake has been committed.” Greene, 583 F.3d at 618.

II. BACKGROUND

This case arises from a voluntary bankruptcy petition filed on June 26, 2006. Four separate adversary proceedings have been filed connection with this petition, and the dockets in all five cases are voluminous. Moreover, the debtor has filed nearly a dozen appeals to the district court, together with further appeals to the bankruptcy appellate panel.

Much of this procedural history is irrelevant to the pending appeal. Nonetheless, an overview of the major facts facilitates understanding of the present motions.

A. Debtors’ Practice of Law and “Lawyer Defend Yourself’

As noted by the bankruptcy court, the debtor was formerly admitted to the California bar, but was disbarred in 1991. See Lebbos v. State Bar, 53 Cal.3d 37, 49, 278 Cal.Rptr. 845, 806 P.2d 317 (1991).

More recently, and perhaps ironically, debtor operated a business titled “Lawyer Defend Yourself,” which published a series of books apparently instructing attorneys in how to dispute allegations of misconduct. In late 2005, debtor completed negotiation of a contract to sell this business. Exhibit of Record (“ER”) DD-250. In July of 2006, debtor met with the buyer of this business in Redding, CA regarding the aftermath of this sale.

*158 During this time, debtor was prosecuted for practicing law without a license, apparently in connection with the “Lawyer Defend Yourself’ business. See Appellant’s Opening Br. at 10 n. 4, ER DD 253-54. This case was prosecuted in State court in San Jose. Debtor was convicted, and on July 13, 2006, she was sentenced to nine months of electronic monitoring “in San Jose.”

B. Debtors’ Residence

Another thread woven through this case is debtor’s migration around the state of California. Debtor has provided conflicting statements regarding her residency. At various points, she asserts that she has resided in southern California for some time. See Bankr.Dkt. No. 349 (filed Aug. 14, 2007) (debtor asserts that she has resided in Long Beach, California for “over six years”), ER DD 287-90 (debtor states that she has lived in Los Angeles County for over four years). Other statements contradict this; for example, debtor stated on July 19, 2006 that she resided in Red-ding, CA. ER DD, 243. The briefing on this appeal does not reveal how debtor came to be prosecuted in Santa Clara County.

To the extent that debtor’s residence is pertinent to this case, the bankruptcy judge determined that the debtor resided in Redding, CA in the months prior to August 14, 2006. On or around that date, debtor moved to Santa Clara county, apparently in connection with the state criminal conviction. In Santa Clara, debtor first moved to Saratoga, then moved to San Jose on December 1, 2006. ER B-4. On May 25, 2007, debtor moved to southern California.

C. Debtor’s Medical Condition

A third major theme in this case is debtor’s medical condition. Debtor claims to suffer from medical disabilities that limit her ability to travel or to communicate over the phone. The Bankruptcy Judge observed that debtor was slow in providing documentation of these problems.

Debtor contends that her “lungs closed down” on October 24, 2006, that her doctor prohibited her from traveling, and that she promptly conveyed this information to the trustee. Appellant’s Opening Br. at 10. Debtor has not provided any documentation of this communication. On November 1, 2006, and again on November 27, debtor filed documents complaining of her medical problems, but debtor did not attach to these filings any communication from or statement by a medical care provider.

The next filing regarding debtor’s disability was filed on February 14, 2007. Debtor filed a document styled “Debtor’s Medical Report Indicating Impossibility of Performance,” to which she attached a letter from a treating physician stating that she was unable to travel. ER I, Bankr. Dkt. No. 154. The bankruptcy judge later properly characterized this letter as “hearsay and not signed under oath.” Bankr. Dkt. No. 384, n. 9, (Sept. 24, 2007), quoted in Opening Br. at 15. Debtor filed a similar letter from another physician, which suffered from the same defects, on August 14, 2007. Bankr.Dkt. No. 349.

Debtor did not provide admissible evidence of disability until December of 2007. At that time, she re-submitted the letters previously filed by her two physicians, this providing a signed declaration from each physician testifying to the letters’ authenticity. ER J, Bankr.Dkt. No. 447 (Deck of Dr. Torrano filed Dec. 27, 2007); ER K, Bankr.Dkt. No. 423 (Decl. of Dr. Ochsner filed Dec. 10, 2007). Debtor also filed, at that time, a document from the Social Security Administration indicating that debt- or was disabled. ER L, Bankr.Dkt. No. 421 (filed Dec. 10, 2007).

*159 D. Procedural History of the Underlying Bankruptcy Proceeding

Having outlined the general background, the court turns to the chronology of this case.

1. Initial Filing in Redding, CA

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

Related

In Re: Judy A. Robbins, United States Trustee
24 F. Supp. 3d 88 (District of Columbia, 2014)

Cite This Page — Counsel Stack

Bluebook (online)
439 B.R. 154, 2010 U.S. Dist. LEXIS 110588, 2010 WL 3942143, Counsel Stack Legal Research, https://law.counselstack.com/opinion/us-trustee-v-lebbos-in-re-lebbos-caed-2010.