N RE: BRUCE LEICHTY, ET AL V. ROD DANIELSON, ET AL
- Summarized by Michael Myers , Ballard Spahr LLP
- 1 year 11 months ago
- Case Type:
- Consumer
- Case Status:
- Affirmed
- Citation:
- 22-55847 (9th Circuit, Mar 14,2024) Not Published
- Tag(s):
-
- Ruling:
- The Ninth Circuit Court of Appeals affirmed the bankruptcy court's decision awarding fees to the chapter 13 debtor's attorney and modifying the chapter 13 plan to pay the fees, over the objection of the debtor.
- Procedural context:
- Debtor's counsel filed a fee application after filing briefing in opposition to the dismissal of the chapter 13 case. The bankruptcy court granted the fee application and modified the Chapter 13 plan base by $4,416 to permit payment of
the fees to debtor's counsel. Debtor appealed to the district court, which affirmed. Debtor then appealed to the Ninth Circuit.
- Facts:
- Debtor Bruce Leichty and his wife, Kathryn Leichty (together, the “Debtors”) filed a voluntary petition for Chapter 13 bankruptcy on September 5, 2018. The Debtors’ Chapter 13 plan was confirmed on January 16, 2019. The Chapter 13 Trustee, Rod Danielson, (the “Trustee”) filed a motion to dismiss the Debtors’ Chapter 13 case on June 23, 2021, because the Debtors failed to submit their 2020 federal and state tax returns to the Trustee, as required by Central District of California Local Bankruptcy Rule 3015-1(o) (the “Local Rules”). The Debtors’ attorney, Paul Lee (“Lee”), opposed the Trustee’s motion, arguing that the Debtors had timely sought extensions for filing their tax returns until October 15, 2021. A hearing set for July 30, 2021, was continued until October 13, 2021, to give the Debtors a chance to file their returns and submit them to the Trustee.
Debtor was dissatisfied with the continuance and original counsel's refusal to file a declaration “assert[ing] [Leichty’s] entitlement to the full tax return filing extension period.” Debtor then retained Kathleen P. March (“March”) of The
Bankruptcy Law Firm PC (“TBLF”) for the limited purpose of obtaining a continuance until after October 15, 2021. TBLF filed a supplemental brief in opposition to the Trustee’s motion on September 29, 2021, arguing that the Debtors had timely sought and received an extension to file their tax returns until October 15, 2021. The Debtors submitted their returns to the Trustee before the October 13, 2021 hearing, and the Trustee withdrew his motion on October 12,
2021.
On December 15, 2021, TBLF filed a fee application, seeking $5,206 in attorney’s fees.
- Judge(s):
- CLIFTON and SANCHEZ, Circuit Judges, and KORMAN,** District Judge
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