Stockton Street Associates v. Warren

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UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
(SANTA ROSA)
In Re:
RICHARD E. WARREN, JR.,
Debtor.
STOCKTON STREET ASSOCIATES, a
California General Partnership,
Plaintiff,
v.
RICHARD E. WARREN, JR.,
Defendant.
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Case No. 07-11283 AJ 7
Chapter: 7
Adversary Proceeding No. 08-1005
Memorandum re Request for Default Judgment
Entered on Docket
August 07, 2008
GLORIA L. FRANKLIN, CLERK
U.S BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
Case: 08-01005 Doc# 13 Filed: 08/07/08 Entered: 08/07/08 15:26:35 Page 1 of 2

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The court does not usually spend much time on default judgments, but there are too many
questions in this case for the court to issue a judgment without a prove-up hearing and some live
testimony. The court does not understand why plaintiff (evidently) gave defendant funds outside of
escrow, and why it had to pay off an unrecorded encumbrance (why wasn’t it a bfp for value without
notice?), and why if the encumbrance was recorded there was no title insurance. The court also
does not understand why plaintiff seeks damages in the amount of the encumbrance and not just its
out-of-pocket payments. The court declines to issue a judgment, even by default, until these
questions are answered to the court’s satisfaction.
The request for a default judgment will therefore not be considered until a hearing has been
held. Plaintiff shall notice a hearing at 10:00 on any stay relief calendar or 9:00 on a Chapter 13
calendar. Plaintiff’s representative most knowledgeable about the facts shall appear in person, will
be sworn, and will be asked to address the court’s concerns.
Dated: August 7, 2008
SAlan Jaroslovsky
U.S. Bankruptcy Judge
Case: 08-01005 Doc# 13 Filed: 08/07/08 Entered: 08/07/08 15:26:35 Page 2 of 2