Paul R DenBeste and Melody DenBeste

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UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
In re
Paul and Melody Den Beste, 	No. 10-13558
Debtor(s).
______________________________________/
Memorandum re Sanctions
_________
Debtor Paul Den Beste filed his Chapter 13 petition on September 15, 2010. The case has
subsequently been converted to Chapter 7.
On April 28, 2011, Den Beste filed an adversary proceeding against attorney Lynn Searle,
alleging that she owed him damages for violating the automatic stay. 	Neither Searle nor her client
were scheduled by Den Beste as creditors even though she represented a plaintiff in pending state court
litigation against him. In addition, Den Beste falsely represented in his statement of affairs that he was
not involved in any litigation in the year before filing. The basis for the alleged violation of the
automatic stay was a single settlement letter sent by Searle to nine addressees, including Den Beste.
On Searle’s motion, the court summarily dismissed the adversary proceeding. Searle had filed
a timely motion for sanctions. However, the court was unable to award her monetary compensation
because she represented herself. 	The court accordingly ordered Den Beste to appear and show cause
why he should not be sanctioned under the court’s inherent powers.
The automatic stay is intended for the protection of debtors, not as a club to be wielded against
creditors. The court finds that Den Beste has committed sanctionable misconduct by commencing an
adversary proceeding for violating the automatic stay against counsel for a litigant who was
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Entered on Docket
November 14, 2011
GLORIA L. FRANKLIN, CLERK
U.S BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
Case: 10-13558 Doc# 117 Filed: 11/12/11 Entered: 11/14/11 11:45:02 Page 1 of
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improperly omitted from his list of creditors. Moreover, the conduct which was the basis for his
complaint was a mere letter related to pending litigation which, according to Den Beste’s own
statement of affairs, did not exist.
The court finds that Den Beste commenced his action solely for the purposes of harassment,
and that monetary sanctions are necessary to dissuade him from future improper conduct.
Accordingly, the court will order that Den Beste pay the sum of $2,500.00 to the Clerk of the court
within 20 days.1 An appropriate order will be entered.
Dated: November 12, 2011
SAlan Jaroslovsky
U.S. Bankruptcy Judge
1If Den Beste is financially unable to comply, he may make application to the court for a
payment schedule. Den Beste is warned that if he fails to pay the sanction without obtaining a
payment schedule he may not be entitled to a discharge pursuant to § 727(a)(6)(A) of the Bankruptcy
Code.
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Case: 10-13558 Doc# 117 Filed: 11/12/11 Entered: 11/14/11 11:45:02 Page 2 of
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