The Church at San Francisco Where Jesus Is Lord v. Winston et al

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UNITED STATES BANKRUPTCY COURT
FOR THE NORTHERN DISTRICT OF CALIFORNIA
In re
THE CHURCH AT SAN FRANCISCO WHERE
JESUS IS LORD,
Debtor.
THE CHURCH AT SAN FRANCISCO WHERE
JESUS IS LORD,
Plaintiff,
vs.
VALERIE WINSTON, aka VALERIA
WINSTON, an individual; DARRYL
WINSTON, an individual; 1596 CHURCH
STREET CONDOMINIUMS, LLC, a
California Limited Liability
Company; MARC HANNAH, an individual;
JAMES BRANCH DEVELOPMENTS, INC., a
California Corporation; and Does 1
through 50, inclusive,
Defendants.
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Case No. 04-31865 TEC
Chapter 11
Adv. Proc. No. 08-3008 TC
MEMORANDUM RE PLAINTIFF’S EX PARTE APPLICATION
FOR TEMPORARY RESTRAINING ORDER
Upon due consideration, and for the reasons stated herein, the
court denies Plaintiff’s ex parte application for temporary
Signed and Filed: February 05, 2008
________________________________________
THOMAS E. CARLSON
U.S. Bankruptcy Judge
________________________________________
Entered on Docket
February 05, 2008
GLORIA L. FRANKLIN, CLERK
U.S BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
Case: 08-03008 Doc# 13 Filed: 02/05/08 Entered: 02/05/08 13:37:43 Page 1 of 5

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restraining order and determines that this adversary proceeding
must be dismissed for lack of subject-matter jurisdiction.
FACTS
Debtor, who is the Plaintiff in the above-captioned
proceeding, filed a voluntary chapter 11 bankruptcy petition on
June 30, 2004.
On December 29, 2004, the chapter 11 trustee filed a motion
for order authorizing Debtor to refinance the loan secured by real
property located at 1584-1596 Church Street (Property) to pay off
the existing secured loan and the administrative expenses of the
bankruptcy estate. 	The motion was supported by three declarations,
including the declaration of Darryl Winston, pastor of a church in
Vallejo, California. 	Mr. Winston’s declaration provides that he
contacted a real estate broker with whom he had worked in the past
to arrange for a loan to Debtor, and that the broker secured a loan
for Debtor. 	It also provides that Mr. Winston’s church agreed to
make payments on the new loan in order to help Debtor. 	On January
7, 2005, the court entered an order granting the chapter 11
trustee’s unopposed motion to allow the refinance.
On January 21, 2005, the court held a status conference
attended by counsel for: Debtor, the chapter 11 trustee, and the
United States Trustee. 	Counsel for the chapter 11 trustee reported
that the refinance of the loan re the Property had closed, and that
it would be appropriate to dismiss the case after payment of
administrative expenses and exoneration of the chapter 11 trustee’s
bond. 	On April 7, 2005, the court granted Debtor’s ex parte
request to dismiss its chapter 11 bankruptcy case. 	On June 2,
2005, the bankruptcy case was closed.
Case: 08-03008 Doc# 13 Filed: 02/05/08 Entered: 02/05/08 13:37:43 Page 2 of 5

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The complaint filed in the above-captioned adversary
proceeding alleges as follows: that Mr. Winston represented to this
court that he would help to arrange a loan to refinance the loan re
the Property; that Debtor transferred title to the Property on
September 14, 2005 to Valerie Winston; that Ms. Winston paid no
consideration for the transfer; that Ms. Winston wrongfully
borrowed more than $700,000 against the Property from September to
November 2005; that on September 28, 2006 Ms. Winston conveyed
title to the Property to an LLC; and that on November 16, 2006, the
two managing members of the LLC served Plaintiff with a notice of
termination purporting to terminated Debtor’s membership interest
in the LLC.
Based on the actions described above, which occurred almost
exclusively after the bankruptcy case was dismissed, the complaint
asserts nineteen state-law causes of action including cancellation
of the grant deeds to Ms. Winston and the LLC, quiet title,
declaratory relief regarding the grant deeds, contract and tort
claims, and claims for equitable relief.
DISCUSSION
This court has jurisdiction over claims “arising under title
11, or arising in or related to cases under title 11.” 	28 U.S.C.
§ 1334 (b). 	The claims asserted in the complaint are state-law
claims and thus do not “arise under” title 11. 	None of the claims
arose in Debtor’s bankruptcy case, because the events alleged in
the complaint occurred almost exclusively postpetition. 	The only
event that occurred during Debtor’s bankruptcy case is the
declaration by Mr. Winston filed in support of Debtor’s motion for
authority to refinance. 	However, the complaint does not allege
that Mr. Winston promised to do something during the pendency of
Case: 08-03008 Doc# 13 Filed: 02/05/08 Entered: 02/05/08 13:37:43 Page 3 of 5

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the bankruptcy case that was not done postpetition, or that the
dismissal of the case sought and obtained by Debtor was procured by
fraud. 	Nor does the complaint seek to enforce an order of this
court. 	Thus, the complaint does not assert a claim “arising in” a
bankruptcy case. 	Finally, the complaint does not allege any claims
“related to” a bankruptcy case, because there is no chapter 11 case
pending to which the alleged claims relate. 	Accordingly, this
court lacks jurisdiction over the complaint. 	28 U.S.C. § 1334(b).
The complaint should be dismissed without prejudice.
**END OF MEMORANDUM**
Case: 08-03008 Doc# 13 Filed: 02/05/08 Entered: 02/05/08 13:37:43 Page 4 of 5

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Court Service List
Craig K. Martin, Esq.
Law Offices of Craig K. Martin
1596 Church Street, Suite 100
San Francisco, CA 94131
James H. Oddie, Esq.
Bradshaw & Associates, P.C.
575 Market Street, 22nd Floor
San Francisco, CA 94105
Case: 08-03008 Doc# 13 Filed: 02/05/08 Entered: 02/05/08 13:37:43 Page 5 of 5