John Nordblad

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UNITED STATES BANKRUPTCY COURT
CENTRAL DISTRICT OF CALIFORNIA
LOS ANGELES DIVISION
In re
JOHN NORDBLAD,
Debtor.
Case No. 2:13-bk-14562-RK
Chapter 7
SEPARATE STATEMENT OF
DECISION ON DEBTOR’S MOTIONS
TO VACATE DISMISSAL AND
REINSTATE CHAPTER 7 CASE
Pending before the court are the motions of debtor John Nordblad to vacate
the dismissal of his Chapter 7 bankruptcy case, filed on May 20, 2013 and June
13, 2013. For the reasons stated herein, the court concludes that the motions
should be denied.
On February 22, 2013, debtor filed a petition for relief under Chapter 13 of
the Bankruptcy Code, 11 U.S.C. On March 6, 2013, a creditor, Deutsche Bank
National Trust Co., as indenture trustee for New Century Home Equity Loan Trust
2004-2, filed a motion for relief from the automatic stay under 11 U.S.C. § 362(d)
to proceed with its unlawful detainer action in state court as to certain real property
FILED & ENTERED
JUN 17 2013
CLERK U.S. BANKRUPTCY COURT
Central District of California
BY DEPUTY CLERK	tatum
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it purchased at a trustee’s sale, in which debtor may claim an interest, which sale
took place before the bankruptcy case was filed, indicating that the property was
not an asset of the bankruptcy estate. See also, 11 U.S.C. § 541(a)(defining
property of the bankruptcy estate as including all interests of the debtor in property
as of the commencement of the bankruptcy case). The stay relief motion was
noticed for hearing on April 4, 2013 before the Honorable Vincent P. Zurzolo,
United States Bankruptcy Judge, who was then assigned to this case. After
hearing, Judge Zurzolo granted the stay relief motion, which was unopposed. On
April 11, 2013, the court entered an order granting stay relief to Deutsche Bank.
On March 26, 2013, on debtor’s notice of conversion, the case was
converted to one under Chapter 7 of the Bankruptcy Code. When the case was
converted to Chapter 7, the case was reassigned to the undersigned United
States Bankruptcy Judge since Judge Zurzolo does not hear Chapter 7 cases.
Also, on March 26, 2013, the court issued a notice of meeting of creditors under
11 U.S.C. § 341(a) set for April 26, 2013 at 9:00 a.m., which was served on debtor
as well as creditors. The notice of meeting of creditors stated that the debtor
must be present at the meeting of creditors to be questioned under oath by the
trustee and creditors. On May 6, 2013, the Chapter 7 trustee filed a notice of
continued meeting of creditors under 11 U.S.C. § 341(a) set for May 15, 2013
because debtor failed to appear at the previously scheduled meeting of creditors
on April 26, 2013. The trustee in the notice of continued meeting of creditors
stated to the debtor that he failed to appear for the previously scheduled meeting
of creditors and that his failure to appear at the continued meeting of creditors may
result in the dismissal of the case by the court. On May 16, 2013, the Chapter 7
trustee filed a request for dismissal of the case on grounds that debtor also failed
to appear at the continued meeting of creditors on May 15, 2013. On May 17,
2013, pursuant to the trustee’s request, the court dismissed the case for debtor’s
failure to appear at the meeting of creditors.
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On May 20, 2013, debtor filed his motion to vacate dismissal order and
reinstate Chapter 7 case pursuant to Federal Rule of Bankruptcy Procedure 9023
and 11 U.S.C. § 105. In his motion, debtor asserted that the dismissal of his
bankruptcy case should be vacated and his case reinstated on grounds that he
filed a case in the United States District Court for the Central District of California,
which should be consolidated with his bankruptcy case. Debtor attached a copy of
a notice of removal of an unlawful detainer case pending in state court filed on
April 16, 2013 in Deutsche Bank National Trust Co., as indenture trustee for New
Century Home Equity Loan Trust 2004-2 v. John R. Nordblad, et al., No. CV 13-
2647 MWF (RZx), United States District Court for the Central District of California.
The proof of service for the motion indicates that the Chapter 13 trustee and the
Office of the United States Trustee were purportedly served at 255 East Temple
Street, Los Angeles, CA 90012, but no other parties were served. The motion
was not noticed for hearing as required by Local Bankruptcy Rule 9013-1, which
generally requires that motions be noticed for hearing.
Because the court did not rule upon the motion, on June 13, 2013, debtor
filed a second motion to vacate dismissal and reinstate his bankruptcy case,
Debtor’s Expedited Request Per Notice of Motion and Motion to Vacate Dismissal
Order and Reinstate Debtor’s Chapter 7 Case Pursuant to Federal Rule of
Bankruptcy Procedure 9023 and 11 U.S.C. [§] 105. The wording of the second
motion is nearly identical to the first motion. As with the first motion, the proof of
service for the motion indicates that the Chapter 13 trustee and the Office of the
United States Trustee were purportedly served at 255 East Temple Street, Los
Angeles, CA 90012, but no other parties were served. Like the first motion, the
second motion was not noticed for hearing as required by Local Bankruptcy Rule
9013-1, which generally requires that motions be noticed for hearing.
The motions should be denied for several reasons. First, the motions were
not noticed for hearing as required by Local Bankruptcy Rule 9013-1. Second, the
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motions were not properly served on parties entitled to notice. The requested
relief to vacate the dismissal of the bankruptcy case and to reinstate it affects the
rights of other parties, namely, the creditors, and other parties entitled to notice,
such as the Chapter 7 trustee and the United States Trustee. Rules 2002, 9013,
9014, 9023 and 9024 of the Federal Rules of Bankruptcy Procedure; Local
Bankruptcy Rule 1017-2(d) and 9013-1. None of the creditors and the Chapter 7
trustee were served by debtor because they were not listed on the proof of service
of the motions. The Chapter 13 trustee and the United States Trustee were not
properly served at their correct addresses as reflected on the case docket.
However, the court notes that the case docket reflects that the Chapter 7 trustee,
the United States Trustee, some creditors, the ones who filed requests for special
notice, were served electronically with notice by the clerk of the court through the
Bankruptcy Noticing Center, but not all creditors listed on the creditor mailing
matrix were served.
Third, debtor has not demonstrated manifest error, newly discovered
evidence, or other grounds justifying relief from the court’s order dismissing the
case under Rule 9023 of the Federal Rules of Bankruptcy Procedure and Local
Bankruptcy Rule 9013-4. The case was dismissed at the Chapter 7 trustee’s
request because debtor failed to appear twice at the meeting of creditors under 11
U.S.C. § 341(a), which he was required by 11 U.S.C. § 343 to attend and be
examined by the trustee and creditors. See Local Bankruptcy Rule 1017-2(b). In
his moving papers, debtor does not dispute that he failed to appear for the two
scheduled meetings of creditors, nor does he explain why he failed to appear.
Debtor’s failure to appear at a meeting of creditors under 11 U.S.C. § 341(a)
constitutes proper grounds for dismissal of a Chapter 7 bankruptcy case. Local
Bankruptcy Rule 1017-2(b); 11 U.S.C. § 105; see also, 11 U.S.C. §
707(a)(1)(unreasonable delay by the debtor that is prejudicial to creditors
constitutes cause for dismissal). Debtor’s maintenance of a lawsuit in the federal
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district court based on removal of the unlawful detainer lawsuit from state court
does not constitute an excuse of debtor’s failure to appear for the meetings of
creditors or does not otherwise warrant vacating the dismissal order and
reinstating the bankruptcy case under Rule 9023 of the Federal Rules of
Bankruptcy Procedure and Local Bankruptcy Rule 9013-4. The unlawful detainer
case is not related to the bankruptcy case because the trustee’s sale took place
before the bankruptcy case was filed, which indicates that the property was not an
asset of the bankruptcy estate, and in recognition of this fact, the court had
previously granted the purchaser from the automatic stay in this bankruptcy case
to continue the unlawful detainer case in state court.
A separate order denying the motions is being filed concurrently.
IT IS SO ORDERED.
###
Date: June 17, 2013
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NOTICE OF ENTERED ORDER AND SERVICE LIST
Notice is given by the court that a judgment or order entitled (specify) SEPARATE STATEMENT OF
DECISION ON DEBTOR’S MOTIONS TO VACATE DISMISSAL AND REINSTATE CHAPTER 7 CASE
was entered on the date indicated as “Entered” on the first page of this judgment or order and will be
served in the manner indicated below:
I. SERVED BY THE COURT VIA NOTICE OF ELECTRONIC FILING (“NEF”) – Pursuant to controlling
General Order(s) and Local Bankruptcy Rule(s), the foregoing document was served on the following
person(s) by the court via NEF and hyperlink to the judgment or order. As of June 17, 2013, the following
person(s) are currently on the Electronic Mail Notice List for this bankruptcy case or adversary proceeding
to receive NEF transmission at the email address(es) indicated below:
Nichole Glowin nglowin@wrightlegal.net, bkgroup@wrightlegal.net
Mehrdaud Jafarnia bknotice@mccarthyholthus.com, mjafarnia@mccarthyholthus.com
Sam S Leslie (TR) sleslie@trusteeleslie.com,
sleslie@ecf.epiqsystems.com;trustee@trusteeleslie.com
United States Trustee (LA) ustpregion16.la.ecf@usdoj.gov
II. SERVED BY THE COURT VIA U.S. MAIL: A copy of this notice and a true copy of this judgment or
order was sent by U.S. Mail, first class, postage prepaid, to the following person(s) and/or entity(ies) at the
address(es) indicated below:
Debtor:
John Nordblad
39943 Meadocrest Way
Palmdale, CA 93551
III. TO BE SERVED BY THE LODGING PARTY: Within 72 hours after receipt of a copy of this judgment or
order which bears an “Entered” stamp, the party lodging the judgment or order will serve a complete copy
bearing an “Entered” stamp by U.S. Mail, overnight mail, facsimile transmission or email and file a proof of
service of the entered order on the following person(s) and/or entity(ies) at the address(es), facsimile
transmission number(s) and/or email address(es) indicated below:
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