Zachary Rusk v. Derek Beutler

CourtBankruptcy Appellate Panel of the Tenth Circuit
DecidedJuly 3, 2025
Docket25-010
StatusPublished

This text of Zachary Rusk v. Derek Beutler (Zachary Rusk v. Derek Beutler) is published on Counsel Stack Legal Research, covering Bankruptcy Appellate Panel of the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Zachary Rusk v. Derek Beutler, (bap10 2025).

Opinion

FILED BAP Appeal No. 25-10 Docket No. 43 Filed: 07/03/2025 Page: 1 ofU.S.15 Bankruptcy Appellate Panel of the Tenth Circuit

July 3, 2025 NOT FOR PUBLICATION 1 Clerk

UNITED STATES BANKRUPTCY APPELLATE PANEL OF THE TENTH CIRCUIT _________________________________

IN RE ZACHARY RUSK, BAP No. UT-25-10

Debtor.

_________________________________ Bankr. No. 23-20383 ZACHARY RUSK, Chapter 13

Appellant,

v.

DEREK BEUTLER, OPINION

Appellee. _________________________________

Appeal from the United States Bankruptcy Court for the District of Utah

Submitted on the briefs. 2 _________________________________

PER CURIAM:

1 This unpublished opinion may be cited for its persuasive value, but is not precedential, except under the doctrines of law of the case, claim preclusion, and issue preclusion. 10th Cir. BAP L.R. 8026-6. 2 The parties did not request oral argument, and after examining the briefs and appellate record, the Court has determined unanimously that oral argument would not materially assist in the determination of this appeal. See Fed. R. Bankr. P. 8019(b). The case is therefore ordered submitted without oral argument. BAP Appeal No. 25-10 Docket No. 43 Filed: 07/03/2025 Page: 2 of 15

In early 2023, Appellant Zachary Rusk filed a chapter 13 bankruptcy

petition represented by attorney Derek Beutler. On May 23, 2023, the Bankruptcy

Court entered an order confirming Appellant’s chapter 13 plan. On February 3,

2025, Beutler filed a Motion to Withdraw as Counsel (the “Motion to Withdraw”)

and related notice alerting the Bankruptcy Court that “[t]here has been a

breakdown in communication between the client and our law firm, and we can no

longer adequately represent the client.” 3 On February 10, 2025, Appellant filed a

Combined Motion to Strike and Motion for Contempt, Sanctions (“Motion for

Contempt”) and a declaration in support, which asserted various ethical and

procedural violations against Beutler. On February 12, 2025, the Bankruptcy

Court conducted a hearing on the Motion to Withdraw at which Beutler,

Appellant, and counsel for the chapter 13 trustee appeared.

At the hearing, the Bankruptcy Court granted the Motion to Withdraw

based on the representations made by parties and, to the extent the Motion for

Contempt was treated as an objection, overruled that objection. Appellant then

clarified the Motion for Contempt was also a motion to strike the Motion to

Withdraw, and the Bankruptcy Court then denied any request to strike.

Subsequently, the Bankruptcy Court entered a minute order granting the Motion to

Withdraw for the reasons stated on the record. On February 18, 2025, Appellant

refiled his Motion for Contempt, declaration, and proposed order. 4 On February

3 Motion to Withdraw at 1, in Appellee’s App. at 8. 4 Bankr. Dkt. ECF No. 47. 2 BAP Appeal No. 25-10 Docket No. 43 Filed: 07/03/2025 Page: 3 of 15

20, 2025, the Bankruptcy Court entered an order granting the Motion to Withdraw (the

“Order Granting Motion to Withdraw”), 5 which Appellant appealed on February 24,

2025.

I. Jurisdiction

The BAP has jurisdiction to hear timely filed appeals from “final judgments,

orders, and decrees” of bankruptcy courts within the Tenth Circuit, unless a party elects

to have the district court hear the appeal. 6 No party elected to have the district court hear

the appeal. Appellant timely filed a notice of appeal from the Order Granting Motion to

Withdraw, which is a final order. 7 Thus, the BAP has jurisdiction over this appeal.

II. Issues on Appeal and Standard of Review

Appellant identifies three issues on appeal. 8 In short, Appellant argues the

Bankruptcy Court denied him due process, engaged in judicial misconduct, and erred by

5 Bankr. Dkt. ECF No. 50. 6 28 U.S.C. § 158(a)(1), (b)(1), and (c)(1); Fed. R. Bankr. P. 8003, 8005. 7 In re Durability, Inc., 893 F.2d 264, 265–66 (10th Cir. 1990) (“[A]n order is final if it ends the litigation on the merits. . . . [T]he appropriate ‘judicial unit’ for application of these finality requirements in bankruptcy is not the overall case, but rather the . . . discrete controversy pursued within the broader framework cast by the petition.”). Here, the Order Granting Motion to Withdraw ends the litigation on the merits over whether the attorney can withdraw and disposes of that discrete controversy. 8 “1. The Court violated Rusk’s constitutional right to due process and equal protection. 2. The Court violated the rules by labeling Rusk’s combined motion to strike as an objection. 3. The court violated statutory authority 28USC351(a).” Appellant’s Br. at 5. Appellant raises many additional arguments and issues in his brief. As just one example of many, Appellant cites the takings clause of the Fifth Amendment, but the argument is not developed, and no facts are given to support any error by the Bankruptcy Court regarding the same. See Appellant Br. at 24. This Court has given due consideration to Appellant’s briefing of his appeal, and the many additional arguments and issues he raised therein were either considered but are not sufficiently developed and 3 BAP Appeal No. 25-10 Docket No. 43 Filed: 07/03/2025 Page: 4 of 15

treating the Motion for Contempt as an objection to the Motion to Withdraw. Appellant

does not present arguments explicitly challenging the Bankruptcy Court’s grant of the

Motion to Withdraw or the Bankruptcy Court’s denial of his request to strike the Motion

to Withdraw. Rather, Appellant takes issue with the Bankruptcy Court’s failure to rule on

the Motion for Contempt. 9

Bankruptcy Court’s “procedural and evidentiary rulings” are reviewed for abuse of

discretion. 10 A clear example of an abuse of discretion exists where the trial court

“commits a legal error or relies on clearly erroneous factual findings.”11 Questions of law

are reviewed de novo. 12

are denied on that basis, or are denied for the same reasons this Court denies the arguments and issues addressed in this Opinion. 9 “Petitioner seeks an order of this court to reverse and remand the inferior courts order on Rusk’s combined motion to strike and for contempt, sanctions against Derek Butler [sic], as well as for granting Rusk a hardship discharge in this action.” Appellant’s Br. at 26. 10 In re Kleinhans, 438 B.R. 355, 2010 WL 1221751, at *3 (10th Cir. BAP March 30, 2010) (unpublished). See also Franklin Am. Mortg. Co. v. Univ. Nat’l Bank of Lawrence, 910 F.3d 270, 283 n.6 (6th Cir. 1998) (“We review denials of motions to strike under an abuse of discretion standard.”). 11 Cruz v. Farmers Ins. Exch., 42 F.4th 1205, 1210 (10th Cir. 2022). See also Jackson v. Los Lunas Cmty. Program, 880 F.3d 1176, 1191 (10th Cir.

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