Christopher Lane

3:06-bk-30803CanbOct 24, 2008

Full text

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
MEMORANDUM RE MOTION FOR TURNOVER
AND APPLICATION TO DISMISS 	-1-
UNITED STATES BANKRUPTCY COURT
FOR THE NORTHERN DISTRICT OF CALIFORNIA
In re:
CHRISTOPHER LANE,
Debtor.
)
)
)
)
)
)
)
)
)
)
)
)
Case No. 06-30803 TC
Chapter 13
MEMORANDUM RE MOTION FOR TURNOVER AND APPLICATION TO DISMISS
On October 24, 2008, the court held a hearing re creditor
Allan Cadgene’s Motion for Turnover of Artwork in Compliance with
Debtor’s Plan (the Turnover Motion). 	Julia M. Wei appeared for
Cadgene. 	Debtor failed to appear.
Creditor Alan Cadgene obtained a pre-petition judgment lien
against artwork created by Debtor. 	Debtor filed a chapter 13 case
to prevent the forced sale of that art. 	Debtor and Cadgene agreed
upon the terms of a chapter 13 plan (Plan) under which Debtor would
be required to sell art over time. 	If Debtor failed to pay off the
Signed and Filed: October 24, 2008
________________________________________
THOMAS E. CARLSON
U.S. Bankruptcy Judge
________________________________________
Entered on Docket
October 28, 2008
GLORIA L. FRANKLIN, CLERK
U.S BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
Case: 06-30803 Doc# 88 Filed: 10/24/08 Entered: 10/28/08 08:41:27 Page 1 of 4
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
MEMORANDUM RE MOTION FOR TURNOVER
AND APPLICATION TO DISMISS 	-2-
debt on the schedule provided in the Plan, Cadgene could designate
certain works of art and seize them as payment in kind at prices
previously agreed upon by the parties (the Designated Artworks).
When Debtor failed to make a scheduled debt payment, Cadgene made
the necessary designation of artworks. 	When Debtor failed to
transfer the Designated Artworks as required by the Plan, 	Cadgene
filed the Turnover Motion. 	Debtor failed to respond to the
Turnover Motion, and on the eve of the hearing on that Motion filed
an application to dismiss the chapter 13 case (Application to
Dismiss).
Upon due consideration, and for the reasons set forth below,
the Application to Dismiss is denied, and the Turnover Motion is
granted.
The Debtor’s right to dismiss a chapter 13 case is not
absolute, and an application to dismiss may be denied when the
debtor acts in bad faith. 	Rosson v. Fitzgerald (In re Rosson),
2008 WL 4330558 (9th Cir. 2008). 	This case is much like Rosson, in
that Debtor obtained a delay in the enforcement of Cadgene’s claim
through an agreed-upon Plan, then attempted to avoid the
consequences of that Plan after having obtained its benefits.
Debtor’s Application to Dismiss is not supported by any statement
of reasons or declaration, and is not set for hearing. 	On the
basis of the record currently before the court, the Application to
Dismiss is denied at this time.
Case: 06-30803 Doc# 88 Filed: 10/24/08 Entered: 10/28/08 08:41:27 Page 2 of 4
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
MEMORANDUM RE MOTION FOR TURNOVER
AND APPLICATION TO DISMISS 	-3-
Debtor having filed no opposition to the Turnover Motion, and
the Turnover Motion appearing to be in conformity with the
confirmed Plan, the Turnover Motion is granted.
It appearing that Debtor is not acting in good faith and is
attempting to frustrate Cadgene’s rights under the confirmed Plan,
Debtor should be restrained from moving or attempting to move any
of the artwork subject to Cadgene’s lien and the Plan. 	Cadgene is
authorized to remove the Designated Artworks from the storage
facility in which they are located without consent of Debtor. 	The
storage facility is authorized and ordered to permit and take all
steps necessary to effect such removal. 	Cadgene shall afford
Debtor 48 hours notice of such removal. 	Debtor and/or Debtor’s
counsel may be present and observe, but are ordered not to
interfere with removal of the Designated Artworks.
Cadgene’s counsel is directed to prepare a form of order
consistent with this decision.
**END OF MEMORANDUM**
Case: 06-30803 Doc# 88 Filed: 10/24/08 Entered: 10/28/08 08:41:27 Page 3 of 4
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
Court Service List
Peter N. Hadiaris, Esq.
Law Offices of Peter N. Hadiaris
600 Harrison Street, Suite 120
San Francisco, CA 94107
Julia M. Wei, Esq.
Law Offices of Peter N. Brewer
350 Cambridge Avenue, Suite 	200
Palo Alto, CA 943061550
Case: 06-30803 Doc# 88 Filed: 10/24/08 Entered: 10/28/08 08:41:27 Page 4 of 4

Continue your research in ChatGPT or Claude

Connect Omnilex to search the legal corpus from your AI assistant.