Hardy v. Ross (In re Hardy)
Hardy v. Ross (In re Hardy)
Opinion of the Court
On May 31, 2016, Ms. LaTricia Hardy filed a pro se , voluntary bankruptcy petition in the United States Bankruptcy Court for the District of Columbia ("Bankruptcy Court"). After two years of litigation, Ms. Hardy appeals six of the Bankruptcy Court's orders. Proceeding pro se , Ms. Hardy appeals the following: (1) the order granting the Trustee's motion to "turnover" her commercial real estate property, see ECF No. 1 (Civ. No. 16-1968); (2) the order "clarifying" that the Bankruptcy Court's turnover order was not stayed, see ECF No. 1 (Civ. No. 16-1969); (3) the order denying Ms. Hardy's request to "terminat[e] [ ] conversion to Chapter 7," see ECF No. 1 (Civ. No. 16-1970); (4) the order holding Ms. Hardy in contempt and denying her motion to dismiss the Chapter 7 Trustee's claims, see ECF No. 1 (Civ. No. 17-1017); (5) the order granting All Credit Considered Mortgage, Inc.'s ("ACC") motion for summary judgment, see ECF No. 1 (Civ. No. 17-1316); and (6) the order granting the Chapter 7 Trustee's motion to approve a compromise with ACC, see ECF No. 1 (Civ. No. 18-434).
The Court has considered all of the appeals and motions, the responses and replies thereto, the voluminous record, and the applicable law, and hereby AFFIRMS the Bankruptcy Court's six orders, GRANTS the Chapter 7 Trustee's motion to dismiss as equitably moot, and DENIES the Chapter 7 Trustee's motion to dismiss as time-barred.
I. Background
On May 31, 2016, Ms. Hardy filed a voluntary petition for relief under Chapter 13 of the Bankruptcy Code. See A.R., ECF No. 29-1 at 5(Civ. No. 16-1698).
On August 17, 2016, the Trustee filed a motion for an order approving the turnover of Ms. Hardy's co-owned commercial real estate property. A.R., ECF No. 12-1 at 129-134 (Civ. No. 16-1968). The Bankruptcy Court granted the turnover motion on September 9, 2016, ordering Ms. Hardy to "immediately turnover" her property and authorizing the Trustee to "take possession and control." Id. at 154-55. On September 22, 2016, Ms. Hardy noticed her appeal of that order in this Court. ECF No. 1 (Civ. No. 16-1968).
On September 19, 2016, the Bankruptcy Court also issued an order "clarifying that no stay of the Court's turnover order is in place pending disposition of the motion for a stay" that Ms. Hardy had filed. A.R., ECF No. 12-1 at 160 (Civ. No. 16-1968); see also A.R., ECF No. 29-1 at 14 (Civ. No. 16-1968). In so doing, the Bankruptcy Court emphasized that "the turnover order has not been stayed by the filing of a motion to stay" and that Ms. Hardy "remains obligated to comply with it." A.R., ECF No. 12-1 at 160 (Civ. No. 16-1968)(emphasis in original). The Bankruptcy Court subsequently denied Ms. Hardy's motion for a stay of the turnover order. See A.R., ECF No. 29-1 at 16 (Civ. No. 16-1968). On September 22, 2016, Ms. Hardy noticed an appeal in this Court of the clarifying order, but not the denial of her motion to stay. ECF No. 1, (Civ. No. 16-1969).
On November 21, 2016, Ms. Hardy filed a motion for an emergency temporary restraining order in this Court, which the Court construed as a motion to stay the Bankruptcy Court's orders denying her motion to "terminate" the conversion from Chapter 13 to Chapter 7 and granting the Trustee's turnover motion pending appeal. See TRO Mot., ECF No. 10 (Civ. No. 16-1968); Mem. Op., ECF No. 17 at 2 (Civ. No. 16-1968). The Court denied Ms. Hardy's motion on December 29, 2016. See Order, ECF No. 16 (Civ. No. 16-1968). In so doing, the Court allowed the Chapter 7 bankruptcy case to proceed.
The Trustee-having been authorized to sell the property
A few days later, the Bankruptcy Court approved and ratified the sale of the property over Ms. Hardy's opposition. A.R., ECF No. 29-2 at 18-26 (Civ. No. 16-1968). The Bankruptcy Court ordered the Trustee to pay the liens attached to the property, including ACC's claims. Id. at 22. It also ordered the Trustee to pay Ms. White her one-half share in the remaining property. Id. The sale was finalized on July 5, 2017, when the Trustee executed the deed. A.R., ECF No. 29-3 at 20-24 (Civ. No. 16-1968).
Meanwhile, Ms. Hardy had been litigating the validity of ACC's lien in the Superior Court for the District of Columbia. See ACC v. Hardy , 2014 CA 4580; A.R., ECF No. 12-1 at 58-65 (Civ. No. 16-1968). In September 2015, Superior Court Judge Stuart Nash entered summary judgment in ACC's favor, finding that it had a valid, enforceable claim to Ms. Hardy's property. Id. at 60.
Similarly, on April 10, 2017, Ms. Hardy objected to the validity of ACC's lien in Bankruptcy Court. A.R., ECF No. 4 at 4-9 (Civ. No. 17-1316). In response, ACC filed a motion for summary judgment, seeking to establish that it had a valid lien. A.R., ECF No. 29-3 at 25-26 (Civ. No. 16-1968). Ms. Hardy opposed that motion and filed a cross-motion for summary judgment. See id. at 37-40. On June 17, 2017, the Bankruptcy Court granted ACC's motion for summary judgment, finding that its lien was indeed valid. Id. at 50-69. On June 30, 2017, Ms. Hardy noticed an appeal of that summary judgment order in this Court. See ECF No. 1 (Civ. No. 17-1316).
Once the Bankruptcy Court found that ACC had a valid lien, a dispute arose over the amount that ACC was owed from the turnover sale. See A.R., ECF No. 29-4 at 6-11 (Civ. No. 16-1968). In order to avoid further litigation, the Trustee and ACC proposed a settlement agreement whereby ACC would accept a "short" payment-less than the amount it was allegedly owed-and, in exchange, the Trustee would release ACC of all claims against it. See id. at 9 ¶¶ 19-20. On October 23, 2017, the Bankruptcy Court approved the Trustee's proposed compromise, despite Ms. Hardy's objections. Id. at 51-56. In so doing, the Bankruptcy Court authorized the Trustee to pay ACC and Ms. White the amounts both were owed under the agreement. Id. at 54-55. On November 6, 2017, Ms. Hardy noticed an appeal of that approval order in this Court. See ECF No. 1 (Civ. No. 18-434).
All of Ms. Hardy's appeals are now ripe for review.
II. Standard of Review
The Court has jurisdiction over Ms. Hardy's appeals pursuant to *220
As an appellate court, this Court reviews legal questions and conclusions de novo and reviews findings of fact under a clearly erroneous standard. See In re Chreky ,
III. Analysis
Ms. Hardy appeals six of the Bankruptcy Court's orders. The Trustee filed two motions to dismiss at least three of those appeals. The Court addresses each in turn.
A. The Bankruptcy Court's Turnover Order is Affirmed
Ms. Hardy argues that the Bankruptcy Court erred when it granted the Trustee's motion for a turnover order. See Appellant's Br., ECF No. 9 (Civ. No. 16-1968). She contends that a turnover order is only appropriate when there is no legitimate dispute over what is owed to the debtor. See id. at 19. Therefore, she argues that the turnover order was not appropriate because she disputes the validity of ACC's purported deed of trust lien. See id. at 10-12, 19. The Trustee responds by arguing that the Bankruptcy Court correctly ordered the turnover because the amount owed to Ms. Hardy is not in dispute. Appellee's Br., ECF No. 12 at 10-12, 21-28 (Civ. No. 16-1968).
In addition, the Trustee argues that Ms. Hardy's appeal is equitably moot now that the property at issue has been sold to a third party. Appellee's Mot., ECF No. 18 ¶ 8 (Civ. No. 16-1968); see also Appellee's Br., ECF No. 21 at 12-14 (Civ. No. 17-1017). Ms. Hardy contends that her appeal should not be dismissed as moot because the illegality of the bankruptcy proceeding would affect the distribution of the proceeds from the sale of the property. Appellant's Opp'n, ECF No. 20 (Civ. No. 16-1968).
"Under the bankruptcy code, the sale of property to a good faith purchaser cannot be overturned on appeal unless that sale was stayed pending appeal." In re Hope 7 Monroe St. Ltd. P'ship ,
The sale of Ms. Hardy's property was not stayed pending appeal. Indeed, this Court denied Ms. Hardy's emergency motion for a stay of the turnover order. See Order, ECF No. 16 (Civ. No. 16-1968); see also Mem. Op., ECF No. 17 (Civ. No. 16-1968). Further, the property was sold to a third party and the sale was finalized when the Trustee executed the deed on July 5, 2017. A.R., ECF No. 29-3 at 20-24 (Civ. No. 16-1968). Thus, the bankruptcy plan and turnover sale were "substantially implemented," precluding effective remedy. In re AOV Indus., Inc. ,
Ms. Hardy appears to argue that the doctrine of equitable mootness does not prevent the Court from reversing the order approving the distribution of funds. See Appellant's Opp'n, ECF No. 20 at 2 (Civ. No. 16-1968); Appellant's Reply, ECF No. 22 at 6-7 (Civ. No. 17-1017). She is correct. See In re Hope 7 Monroe St. ,
Moreover, even if Ms. Hardy's appeals regarding the turnover order were not moot, the Bankruptcy Court did not err in granting the Trustee's turnover motion. As a preliminary matter, Ms. Hardy did not file an opposition to the Trustee's turnover motion in the Bankruptcy Court, despite receiving "notice of an opportunity to object to turnover" on August 17, 2016. See A.R., ECF No. 29-1 at 12-14 (Civ. No. 16-1968)(no opposition filed between August 17, 2016 motion and September 9, 2016 approval). The notice sent to Ms. Hardy explained that the Trustee filed a motion for turnover of real property and warned that failure to respond within twenty-one days may result in the Bankruptcy Court "deem[ing] any opposition waived, treat[ing] the motion as conceded, and issu[ing] an order granting the relief without further notice of hearing." Bankr. No. 16-280, ECF No. 64. By not asserting any arguments in opposition to the turnover motion below, Ms. Hardy waived the arguments she musters on appeal. Cf.
*222District of Columbia v. Air Florida, Inc. ,
Had Ms. Hardy not waived her arguments, her appeal nonetheless would have been unsuccessful. The turnover provision of the Bankruptcy Code states in relevant part:
an entity, other than a custodian, in possession, custody, or control, during the case, of property that the trustee may use, sell, or lease under section 363 of this title ... shall deliver to the trustee, and account for, such property or the value of such property, unless such property is of inconsequential value or benefit to the estate.
Under this definition, Ms. Hardy's ownership stake in the Pennsylvania Avenue commercial property is "property of the estate." The other elements of a section 542(a) turnover action are also satisfied. Ms. Hardy had "possession, custody, or control" of the Pennsylvania Avenue property during her bankruptcy case, see Shapiro v. Henson ,
Ms. Hardy next argues that turnover was improper because she disputes that ACC had a valid lien and this dispute makes turnover impermissible. Appellant's Br., ECF No. 9 at 19-20 (Civ. No. 16-1968)(citing
Although turnover is impermissible as to assets "whose title is in dispute," United States v. Inslaw, Inc. ,
Finally, Ms. Hardy contends that the Bankruptcy Court lacked jurisdiction to order turnover because her dispute with ACC gave rise to a "non-core" proceeding or, alternatively, because Stern v. Marshall ,
Accordingly, the Trustee's motion to dismiss Ms. Hardy's appeals as to the turnover orders is GRANTED . Likewise, the Bankruptcy Court's orders (1) granting the Trustee's turnover motion, see ECF No. 1 (Civ. No. 16-1968); and (2) clarifying that the turnover order is not stayed, see ECF No. 1 (Civ. No. 16-1969), are AFFIRMED .
B. The Bankruptcy Court's Conversion Order is Affirmed
Ms. Hardy next argues that the Bankruptcy Court erred when it denied her motion "requesting termination of conversion to Chapter 7 liquidation." See Appellant's Br., ECF No. 9 at 7-14 (Civ. No. 16-1968); ECF No. 1 (Civ. No. 16-1970). She contends that ACC did not have standing to request that her case be converted to Chapter 7 liquidation because ACC was not her mortgage lender and thus, is not a "party in interest." See Appellant's Br., ECF No. 9 at 9, 11-14 (Civ. No. 16-1968). In addition, Ms. Hardy argues that she did not consent to Chapter 7 conversation and was denied due process because her opposition was not "discussed at all, at the [conversion] hearing."
Ms. Hardy has not appealed the Bankruptcy Court's order converting the case from Chapter 13 to Chapter 7; instead, she appealed the order denying her motion requesting "termination" of the conversion to Chapter 7. See ECF No. 1 (Civ No. 16-1970). Thus, as the Court concluded when considering Ms. Hardy's emergency motion, Ms. Hardy is "effectively appealing an order denying a motion for reconsideration." Mem. Op., ECF No. 17 at 6 (Civ. No. 16-1968). Federal Rule of Bankruptcy Procedure 9024 contemplates motions for reconsideration and applies Federal Rule of Civil Procedure 60 to such motions in bankruptcy proceedings.
As an initial matter, Ms. Hardy's appeal is flawed, arguably fatally, because it challenges the merits of the underlying order-the conversion order-rather than the order from which the appeal was taken-the order denying the motion for reconsideration. See In re Schueller ,
Regardless, Ms. Hardy's primary argument-that ACC did not have standing to file a motion to convert the case-is not persuasive. First, Chapter 13 specifies that "on request of a party in interest or the United States trustee ... the court may convert a case under [Chapter 13] to a case under [C]hapter 7 ... or may dismiss a case under [Chapter 13], whichever is in the best interests of creditors and the estate, for cause ...."
Section 1307(c) requires a two-part analysis: (1) a determination of "cause" justifying dismissal or conversion; and if there is "cause," (2) a decision between dismissal or conversion based not on which of those two options the moving party requests, but rather based on "the best interests of creditors and the estate." In re Jensen ,
Moreover, ACC is a "party in interest" with standing to file a conversion motion. See
ACC's status as a "party in interest" is not diminished because Ms. Hardy disputes the validity of its claim. Although "party in interest" is not defined in Chapter 13, courts rely on the definition set forth in Chapter 11 when construing Chapter 13's language. See, e.g. , In re Armstrong ,
Finally, Ms. Hardy argues that the Bankruptcy Court erred and deprived her of due process when it converted her case and denied her motion to "terminate" the conversion because it did not consider her motion to convert to Chapter 11 and did not consider her opposition to ACC's motion. See Appellant's Br., ECF No. 9 at 8, 12 (Civ. No. 16-1968). These arguments are devoid of merit. The Bankruptcy Court considered and rejected Ms. Hardy's motion to convert to Chapter 11. Hrg. Tr., ECF No. 17 at 84-85 (64:22-65:13), 86 (66:24-25) (Civ. No. 16-1968). It also heard testimony concerning the Superior Court litigation involving Ms. Hardy and ACC.
Therefore, the Bankruptcy Court's Order denying Ms. Hardy's motion requesting "termination" of conversion to Chapter 7, see ECF No. 1 (Civ. No. 16-1970), is AFFIRMED .
C. The Bankruptcy Court's Contempt Order is Affirmed
Ms. Hardy also appeals the Bankruptcy Court's decision to grant the Trustee's contempt motion and deny her opposition motion, styled as a "motion to dismiss Trustee's claims." See ECF No. 1 (Civ. No. 17-1017). She argues that the Bankruptcy Court ignored her purported lease to carry on business affairs on behalf of Capitol Hill Beauty Salon. Appellant's Br., ECF No. 19 at 7, 11 (Civ. No. 17-1017). Had the Court considered this lease, she argues, it could not have issued the turnover order and thus, she would not be held in contempt. See
The Trustee argues that this appeal is also moot, now that the property has been sold. Appellee's Br., ECF No. 21 at 12-14 (Civ. No. 17-1017). He also argues that the Bankruptcy Court's contempt order was appropriate because it was issued in aid of its turnover order.
In granting the Trustee's contempt motion, the Bankruptcy Court found that Ms. Hardy had violated its turnover order by refusing to vacate the property, continuing to rent the property, and interfering with the Trustee's sale of the property. See A.R., ECF No. 29-2 at 5-11 (Civ. No. 16-1968). Instead of sanctioning Ms. Hardy, even though "clear and convincing evidence demonstrate[d] that [Ms. Hardy] was in civil contempt,"
Nonetheless, the Court finds that the Bankruptcy Court did not err in finding Ms. Hardy in contempt of court. It is "firmly established that the power to punish for contempt[ ] is inherent in all courts," as courts are "vested, by their very creation, with power to impose ... submission to their lawful mandates." Chambers v. NASCO ,
Ms. Hardy's arguments to the contrary are all unavailing. First, she argues that she entered into a lease with her mother on behalf of her business, Capitol Hill Beauty Salon, and this lease was not property of the estate. See Appellant's Reply, ECF No. 22 at 3, 7-8. Because the Bankruptcy Court erred in allowing the property to be sold free and clear of the lease, Ms. Hardy contends that she could not be found in contempt.
Moreover, the fact that Ms. Hardy did not sign one of the many pages on her voluntary bankruptcy petition does not require dismissal of the action or reversal of the contempt order. True, Ms. Hardy did *228not sign page eight of her voluntary Chapter 13 bankruptcy petition. A.R., ECF No. 21-1 at 55 (Civ. No. 17-1017). Page eight stated that Ms. Hardy understood the risks of filing pro se . See
Having considered the lengthy record here, it is clear that Ms. Hardy's argument that she did not voluntarily file for bankruptcy is untenable. Indeed, Ms. Hardy has consistently represented before this Court and the Bankruptcy Court that she voluntarily filed for Chapter 13 bankruptcy. See, e.g. , Hrg. Tr., ECF No. 17 at 26 (6:21-25)(Civ. No. 16-1968)("[W]hen I filed the Chapter 13 [petition] ...."); Appellant's Br., ECF No. 9 at 8 (Civ. No. 16-1968)("The Debtor['s] ... bankruptcy proceeding commenced on May 31, 2016, when Debtor filed her voluntary Chapter 13 Petition."). Regardless, "[n]o provision of the Bankruptcy Code, the Bankruptcy Rules or any other authority requires the Court to dismiss a debtor's case merely because he or she failed to sign the petition." In re Rose ,
Ms. Hardy finally argues that dismissal is warranted because the Trustee filed his motion for a turnover order before the Court accepted his application to employ special counsel. This argument must also fail. The Trustee filed the employment application on August 16, 2016, see A.R., ECF No. 21-1 at 14 (Civ. No. 17-1017); he filed the turnover motion on August 17, 2016, see
Therefore, the Bankruptcy Court's order granting the Trustee's motion for contempt, see ECF No. 1 (Civ. No. 17-1017), is AFFIRMED .
D. The Bankruptcy Court's Summary Judgment Order is Affirmed
On May 4, 2017, ACC filed a motion for summary judgment, seeking to establish that it had a valid deed of trust lien on Ms. Hardy's property. A.R., ECF No. 29-3 at 25-26 (Civ. No. 16-1968). Ms. Hardy filed an opposition and cross-motion for summary judgment. See
Ms. Hardy primarily argues that the Bankruptcy Court should not have ruled on ACC's motion for summary judgment because the same issue-whether ACC had *229a valid lien-was the subject of an appeal in the District of Columbia Court of Appeals. Appellant's Br., ECF No. 7 at 7-12 (Civ. No. 17-1316). She also argues that the Bankruptcy Court did not have "core jurisdiction" over the issue.
ACC argues that the Bankruptcy Court had jurisdiction to adjudicate the validity of its lien and enter a final order. ACC Opp'n, ECF No. 32 at 15 (Civ. No. 16-1968). It also argues that the Bankruptcy Court properly granted its motion for summary judgment.
Summary judgment in bankruptcy is governed by Bankruptcy Rule 7056, which incorporates the Federal Rule of Civil Procedure 56 standard. U.S. v. Spicer ,
As an initial matter, the Bankruptcy Court had dismissed most of Ms. Hardy's arguments related to the validity of ACC's lien at a hearing on April 19, 2017. See A.R., ECF No. 29-3 at 25 (Civ. No. 16-1968); see also A.R., ECF No. 6 at 25-26 (Civ. No. 17-1316)(April 28 Order overruling several of Ms. Hardy's objections after the April 19, 2017 hearing). At the April 19, 2017 hearing, the Bankruptcy Court "took evidence as to some of the issues raised by [Ms. Hardy's] objection[s] and ruled against the debtor as to those issues." A.R., ECF No. 6 at 25-26 (Civ. No. 17-1316). Notably, Ms. Hardy did not appeal the Bankruptcy Court's April 28, 2017 order dismissing most of her objections. See ECF No. 1 (Civ. No. 17-1316)(appealing Bankruptcy Court's summary judgment order). In addition, after reviewing the voluminous record,
First, Ms. Hardy renews her recurring argument that the Bankruptcy Court did not have jurisdiction to grant ACC's motion for summary judgment. Appellant's Br., ECF No. 7 at 9 (Civ. No. 17-1316). The Court rejects the argument and finds that the Bankruptcy Court indeed had jurisdiction to determine the validity of ACC's lien. Bankruptcy Courts have full authority to adjudicate "core" claims that go to the heart of the bankruptcy process. "[C]ore proceedings are those that arise in a bankruptcy case or under Title 11. The detailed list of core proceedings in [ 28 U.S.C.] § 157(b)(2) provides courts with ready examples of such matters." Stern v. Marshall ,
Ms. Hardy primarily argues that the Bankruptcy Court should not have ruled on ACC's summary judgment motion because the same issues were pending in the District of Columbia Court of Appeals. Appellant's Br., ECF No. 7 at 8, 10-11. According to Ms. Hardy, ACC may not "re-litigate" its claims in a different forum, especially when the case has not been removed from the District of Columbia courts. Id. at 8-11. The Court agrees with the Bankruptcy Court that it is "irrelevant" that Ms. Hardy appealed the Superior Court's decision granting ACC's motion for summary judgment to the Court of Appeals. A.R., ECF No. 29-3 at 62 (Civ. No. 16-1968). A voluntary bankruptcy petition "operates as a stay" of any proceeding initiated to recover a claim against a debtor that arose before the commencement of the bankruptcy case.
*231See 2014 CA 4580; A.R., ECF No. 29-3 at 62 (Civ. No. 16-1968).
The Court further agrees that it was "necessary" for the Bankruptcy Court to determine the validity of ACC's lien in order to resolve her case. A.R., ECF No. 29-3 at 62 (Civ. No. 16-1968). Indeed, the Bankruptcy Court granted the Trustee's motion to sell the commercial real estate property. See A.R., ECF No. 29-1 at 116 ¶ 5 (Civ. No. 16-1968). Thus, the Bankruptcy Court necessarily determined the validity of ACC's lien in order to appropriately distribute the proceeds from the sale of the property. A.R., ECF No. 29-3 at 62 (Civ. No. 16-1968); see
Next, Ms. Hardy appears to argue that ACC did not have standing to file a motion for summary judgment because it never filed proof of its claim and therefore never established that it was indeed the mortgage lender. Appellant's Br., ECF No. 7 at 15-17. The Bankruptcy Court agreed that ACC had not filed proof of its claim. A.R., ECF No. 29-3 at 53 (Civ. No. 16-1968). However, that Court concluded that a secured creditor is not required to file a proof of claim-except in certain situations inapplicable here-because the lien passes through the bankruptcy case unaffected.
Finally, Ms. Hardy argues that ACC's lien was invalid because ACC was a foreign corporation not licensed to do business in the District of Columbia at the time the lien was created. Appellant's Br., ECF No. 7 at 14. The Bankruptcy Court concluded that it was immaterial whether ACC was registered to "do business" in the District of Columbia because entering into a loan or mortgage does not qualify as "doing business in the District" pursuant to
Finally, in light of the Bankruptcy Court's thorough order and meticulous fact-finding, this Court certainly cannot conclude that the Bankruptcy Court "ma[de] [up] the facts," as Ms. Hardy complains.
E. The Bankruptcy Court's Order Approving the Compromise Settlement is Affirmed
On October 23, 2017, the Bankruptcy Court approved the Trustee's proposed "compromise" with ACC, despite Ms. Hardy's objections. See A.R., ECF No. 29-4 at 51-55 (Civ. No. 16-1968). In order to avoid further litigation, the Trustee and ACC proposed a settlement agreement whereby ACC would accept a "short" payment-less than the amount it was allegedly owed-and, in exchange, the Trustee would release ACC of all claims against it. See
Ms. Hardy argues that the Bankruptcy Court erred in approving the compromise agreement. See Appellant's Br., ECF No. 28 (Civ. No. 16-1968). The Trustee opposes her motion. See Appellee's Br., ECF No. 29 (Civ. No. 16-1968). In opposing the Bankruptcy Court's order, Ms. Hardy renews several previously-rejected arguments. For example, Ms. Hardy's primary objection is that the Bankruptcy Court erred because ACC's claims were invalid-reiterating arguments the Court considered and rejected. See supra Secs. A (ACC's standing), D (ACC's valid claim). She also argues that the Bankruptcy Court should have "required ACC to prove the validity" of its mortgage before approving the compromise. Appellant's Br., ECF No. 28 at 22-25 (Civ. No. 16-1968). However, the Court already found that the Bankruptcy Court properly determined the validity of ACC's lien in granting ACC's motion for summary judgment. See supra Sec. D. Ms. Hardy also seems to argue that the Bankruptcy Court did not have jurisdiction to determine the validity of ACC's lien. See Appellant's Br., ECF No. 28 at 5 (Civ. No. 16-1968). However, as previously discussed,
It is difficult to discern Ms. Hardy's additional arguments. However, she seems to argue that the compromise should not have been approved because ACC was not entitled to earn interest once she filed her *233bankruptcy petition. See Appellant's Br., ECF No. 28 at 18-20 (Civ. No. 16-1968). Not so.
Finally, Ms. Hardy appears to object to ACC receiving over $4,000 in legal fees as part of the compromise because it "only made 5 minutes in comments at the hearing ... submitted an opposition to debtor's waiver fees and submitted nothing else." Appellant's Br., ECF No. 28 at 20-21 (Civ. No. 16-1968). The Bankruptcy Court found that $4,000 was a "paltry sum" for the work ACC has done in defending its claims. A.R., ECF No. 29-4 at 53. Again,
Federal Rule of Bankruptcy Procedure 9019 authorizes a trustee to enter into a compromise or settlement and allows a bankruptcy court to approve such a compromise. Because the Bankruptcy Court determined that the settlement was reasonable based on an "objective evaluation of developed facts," the Court cannot find that it erred in approving the compromise. In re Chreky, Inc. ,
Finally, the Trustee filed a motion to dismiss Ms. Hardy's appeal for lack of jurisdiction. Appellee's Mot., ECF No. 21 (Civ. No. 16-1968). He argues that Ms. Hardy did not file her appeal until December 7, 2017 and, as such, her appeal is untimely under Federal Rule of Bankruptcy Procedure 8002. Id. at 1-3. While the Court agrees that Ms. Hardy's appeal should be denied, it does not agree that her appeal is barred as untimely. On February 23, 2018, the Bankruptcy Court "determined that the debtor had indeed filed a notice of appeal on November 6, 2017." A.R., ECF No. 1-1 at 2 (Civ. No. 18-434). Indeed, Ms. Hardy's notice of appeal is stamped as "received" on November 6, *2342017. Because the Trustee agrees that November 6, 2017 was the last day that Ms. Hardy could have timely filed her appeal, see Appellee's Mot., ECF No. 21 ¶ 6 (Civ. No. 16-1968), the Court DENIES the motion to dismiss.
IV. Conclusion
For the foregoing reasons, the Court AFFIRMS each of the Bankruptcy Court's six orders that Ms. Hardy has challenged on appeal in civil case numbers 16-1968, 16-1969, 16-1970, 17-1017, 17-1316, and 18-434. An appropriate Order accompanies this Memorandum Opinion.
SO ORDERED.
The Court sua sponte consolidated all of Ms. Hardy's appeals within civil case number 16-1968, finding that the six cases involved common issues and grew out of the same event. See Civ. Case Nos. 16-1969, 16-1970, 17-1017, 17-1316, 18-434.
When citing electronic filings throughout this Opinion, the Court cites to the ECF page number, not the page number of the filed document.
On November 15, 2015, the Bankruptcy Court authorized the Trustee to sell Ms. White's interest in the property along with Ms. Hardy's interest. See A.R., ECF No. 29-1 at 116 ¶ 5 (Civ. No. 16-1968).
Ms. Hardy appealed the Superior Court decision to the Court of Appeals for the District of Columbia. The case has been stayed pending resolution of Ms. Hardy's bankruptcy proceedings. See DCCA Order, ECF No. 7-1 (Civ. No. 17-1316).
Additionally, the Superior Court rejected Ms. Hardy's claims regarding the validity and enforceability of her agreement with ACC. See A.R., ECF No. 12-1 at 58-65 (Civ. No. 16-1968).
Federal Rule of Civil Procedure 60(b) provides in full:
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; (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.
Review of a decision to convert a case is also decided on an "abuse of discretion" standard. See, e.g. , In re Cabral ,
As the following demonstrates, the Court determines that ACC's lien was indeed valid. See infra Sec. D.
To the extent that Ms. Hardy's "termination" motion could be construed as a motion to dismiss her Chapter 7 case under
The Court also agrees that Ms. Hardy, as co-owner of the property, had the right to occupy the property and thus, needed no lease. See United States v. Craft ,
Despite having done so, it is not the Court's duty to hunt through the many lengthy Administrative Records for the April 19, 2017 transcript. See Potter v. District of Columbia ,
This litigation includes the main bankruptcy case (Case No. 16-280), the adversary proceeding initiated in bankruptcy court (Case No. 16-10034), and six appeals before this Court (Cases Nos. 16-1968, 16-1969, 16-1970, 17-1017, 17-1316, 18-434). ACC and Ms. Hardy also litigated their claims in District of Columbia courts.
If the estate is administratively insolvent, Ms. Hardy would lack standing to challenge the compromise. See A.R., ECF No. 29-4 at 51-52 (Civ. No. 16-1698). The Court cannot determine on the record before it whether the estate was administratively insolvent, although it appears that it was. See id. at 9 (listing the proposed settlement, which includes no payment to Ms. Hardy).
Reference
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- IN RE: LaTricia L. HARDY, Debtor. LaTricia L. Hardy v. Bryan S. Ross, and All Credit Considered Mortgage, Inc.
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