Bellingham-Stern Issues Continue at the Supreme Court

The Supreme Court yesterday issued cert in a 7th Circuit case called Wellness International Network v. Sharif.  It looks like a much more direct attack on the powers of bankruptcy courts than Bellingham.

In Wellness, the creditor sued the chapter 7 debtor to deny the discharge and also for declaratory relief asking the bankruptcy court to find that a certain trust was the alter ego of the debtor and therefore the assets were property of the estate.  The creditor won.  The debtor appealed for the first time saying that the bankruptcy court could not enter final judgment because this was a Stern-type claim.  The district court said, too late buddy, you waived the argument i.e. you consented to the bankruptcy court.  The 7th Circuit reversed saying that the bankruptcy court could not enter final judgment on the alter ego issue and that that could not be waived.

I am sure we will discuss this at the July 19 cdcbaa with Prof. Pottow and Judges Paez and Jury.

We have about 50 rsvps for the July 19 program.  I am going to send out the flyer today or tomorrow and expect many more sign ups.  We can only allow 130 persons to attend so please rsvp if you are coming. Remember, telling me you’re coming does not do you any good.  You have to rsvp.

July 19, 2014 – CDCBAA – In re Bellingham

On July 19 the Central District Consumer Bankruptcy Attys (cdcbaa) will hold our First Annual James T. King Bankruptcy Symposium. The topic is In re Bellingham, the new Supreme Court case dealing with core/non-core distinctions and the power of Congress to give power to non-Article III Judges (as you all know).

The panel will be Judge Richard Paez who wrote the opinion for the 9th Circuit Court of Appeals that was appealed to the Supreme Court; Prof. John Pottow from the University of Michigan School of Law who argued the case successfully for the appellees at the Supreme Court. He is really a fun guy to listen to. And Judge Meredith Jury who sits on the BAP and follows these issues carefully. I will be the moderator and try to stay out of their way.

Besides Bellingham, there will be some discussion generally about appeals process. This is really an exceptional panel!

The program will be at Southwestern Law School on July 19 from 11am to 1pm and will be free to members of cdcbaa as always. We will permit non-members to attend for $95. We will invite the local judges as well.

ONE PROBLEM. The room holds only 130 persons and the law school is adamant that we not permit more than that many to attend.

So we are going to require RSVPs. There is a button on the cdcbaa website for the program to RSVP – www.bklawyers.org. We will cut it off when it gets to 130 persons. So please go to the website and RSVP if you want to attend. You can pay the $95 fee on that website as well. We will allow persons who have not been members of the cdcbaa for the past 3 years to join for the rest of the year 2014 now at the reduced price of $175.00 which includes the Ashland Dinner, this program and the two remaining programs for the year.

Our administrator is Linda Righi at cdcbaa@aol.com.

June 25, 2014 – Bankruptcy Program; San Fernando Valley Bar Association; the Metrocraft Program

One of the crucial points in a successful chapter 11 case, whether the debtor is a large business or a homeowner in chapter 11, is getting the court to approve the disclosure statement. The Central District has a form disclosure statement for practitioners to use so the process would seem to be simple. However, when one peruses the bankruptcy court tentative rulings, the judges constantly point out multiple deficiencies in the disclosure statements they are considering. The result? Attorneys have to incur the expense of re-doing deficient disclosure statements, losing time and having an unhappy client.

When judges review disclosure statements, they usually work from a list of factors culled together by a Georgia bankruptcy court some 30 years ago, In re Metrocraft. These factors help our judges determine if your client’s disclosure statement contains adequate information. The Bankruptcy Section has brought together Ron Bender, one of Southern California’s top attorneys in chapter 11 practice and Russell Clementson, one of the U.S. Trustee’s most experienced chapter 11 attorneys to talk about the Metrocraft factors, how the judges locally apply them and how the U.S. Trustee applies them. Any presentation including Ron Bender and Russell Clementson will have a lot of useful tips and guidance.

You should attend this program. The tips and guidance you will receive will improve your work product and will make your clients happier. The price is inexpensive, lunch is included and parking is free. No other bar association gives you so much for such little cost.

By the way, if you do not practice in chapter 11, perhaps you practice in chapter 7 or 13, the program is important for you. Learn what individual debtors in oversized chapter 11 cases (cases to big for chapter 13) go through so that you can better advise them.

If you are a creditor’s attorney, learn what the other side has to do and what you can do to protect your client’s rights.

Here are the particulars:
Date: Wednesday, June 25, 2014
Time: 12 noon to 1:15 p.m
Where: 5567 Reseda Boulevard, Suite 200, Tarzana, CA 91356

Cost:
Member $30.00
Non-Members $40.00
Member at Door $40.00
Non-Member at Door $50.00

Reservations: Contact Linda Temkin at the San Fernando Valley Bar Association
events@sfvba.org; Tel: 818-227-0490; Fax: 818-227-0499

First Annual James T. King Bankruptcy Symposium, In re Bellingham

On July 19 the Central District Consumer Bankruptcy Attorneys Assn (cdcbaa) will have our First Annual James T. King Bankruptcy Symposium.  The topic is In re Bellingham, the new Supreme Court case dealing with core/non-core distinctions and the power of Congress to give power to non-Article III Judges.

Judge Paez wrote the opinion for the 9th Circuit Court of Appeals that was appealed to the Supreme Court.  Prof. John Pottow from the University of Michigan School of Law argued the case successfully for the appellees at the Supreme Court.  He is really a fun guy to listen to.  Of course, Judge Jury sits on the BAP and follows these issues carefully.  Besides Bellingham, there will be some discussion generally about appeals process.  This is really an exceptional panel!

The program will be at Southwestern Law School and will be free to members of cdcbaa as always.  We are going to permit non-members to attend for $95.  We will invite the local judges as well.

ONE PROBLEM.  The room holds only 130 persons and the law school is adamant that we not permit more than that many to attend.

So we are going to require RSVPs.  There is a button on the cdcbaa website for the program to RSVP.  We will cut it off when it gets to 130 persons.  So please go to the website and RSVP if you want to attend.

If you have forgotten your password, send an email to our administrator Linda Righi at cdcbaa@aol.com.  We cannot allow guests unless they pay $95.  We will allow persons who have not been members for the past 3 years to join for the rest of the year 2014 now at the reduced price of $175.00 which includes the Ashland Dinner.

See you there.  JOn

Filings continue to fall

Central District of California
2008 2009 2010 2011 2012 2013 2014
Jan 3,694 6,004 9,013 10,868 8,835 6,552 -26% 4,917 -25%
Feb 3,787 6,971 9,659 10,631 9,307 6,614 -29% 4,779 -28%
March 4,381 8,529 12,840 13,543 10,108 7,684 -24% 5,611 -27%
April 5,023 8,512 12,114 12,087 9,034 7,515 -17% 5,526 -26%
May 5,177 8,967 11,906 11,669 9,620 7,170 -25% 5,659 -21%
June 5,351 9,595 12,190 11,718 8,165 6,202 -24%
July 5,983 9,894 12,737 10,418 8,201 6,404 -22%
Aug 6,195 9,748 12,720 11,496 8,779 6,235 -29%
Sept 6,290 9,214 12,412 10,006 7,222 5,407 -25%
Oct 6,364 10,322 11,753 9,887 8,438 6,169 -27%
Nov 6,029 9,462 10,900 9,099 7,192 4,829 -33%
Dec 6,615 9,864 10,925 9,089 6,187 4,516 -27%
64,889 107,082 139,169 130,511 101,088 75,297 -26%
% of total 0.059 0.075 0.089 0.095 0.852

Foreclosed Homeowner Goes to Jail for Stripping Home on Way Out the Door

Thanks to Mike Avanesian for this:

People v. Acosta
California Court of Appeal, Fourth District, Division 3 (Ikola, J.)
May 12, 2014
2014 WL 1878105

Penal Code section 502.5 defines larceny to include a defaulted or foreclosed borrower’s stripping a house of its fixtures or destroying them with intent to harm the lender or buyer at the foreclosure sale. Though the statute was enacted 91 years ago, this is the first decision interpreting it. The borrowers were real estate brokers and they thoroughly trashed a very high-end house, carting away kitchen appliances, destroying the pool, stripping rock facing off the house, and more. They were convicted and sentenced to 5 years probation including 270 days of actual imprisonment. The decision upholds the constitutionality of the statute as well as the conviction and most of the conditions of probation.

You’re Invited! Reception in Honor of Paula Roe at Roybal

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Opening for Law Clerk for Los Angeles Magistrate

The U.S. District Court invites applications for the position of Law Clerk to a U.S. Magistrate Judge (Vacancy #14-36).  The link can be accessed here.

Tellone Financial in the Top 100 Wealth Managers

My buddy from high school, Dino Tellone, is 54th in the top 100 Wealth Managers in the nation by CNBC and the only Orange County firm to make the list.  Way to go Dino.  The article is here.

June 18, 2014 – OCBA – Recent Developments in Chapter 11

Orange County Bar Association

Commercial Law & Bankruptcy Section

June Meeting

Wednesday, June 18, 2014 – 12:00 p.m. to 1:30 p.m.

 

Speakers:

Hon. Mark Wallace, U.S. Bankruptcy Court

Robert S. Marticello, Esq, partner at Weiland, Golden, Smiley, Wang, Ekvall & Strok LLP

Juliet Y. Oh, Esq., partner at Levene, Neale, Bender, Yoo & Brill LLP

Leonard M. Shulman, Esq., managing partner at Shulman Hodges & Bastian LLP

 

Topic:

Recent Developments in Chapter 11 (Part 2)

 

Location:

Original Mike’s

100 S. Main St., Santa Ana, CA 92701
CLICK HERE TO REGISTER!!!