Melcher v. Richardson (In re Melcher)

Summarized by David Hercher , U.S. Bankruptcy Court, District of Oregon
10 years 2 months ago

Citation:

In re Melcher, No. NC-14-1573-TaDJu (9th Cir. B.A.P. Dec. 7, 2015).

Tag(s):

Ruling:

A pre-filing order may not permit a court to bar a proposed pleading because the pleading lacks merit. Not-for-publication memorandum.

Procedural context:

The chapter 7 trustee moved, for a third time, that the bankruptcy court control debtor-driven litigation against the trustee. The bankruptcy court denied the motion. On the debtor's first appeal, the BAP vacated and remanded with instructions that the bankruptcy court make appropriate findings and implement an appropriate pre-filing order. On remand from the first appeal, the bankruptcy court issued its pre-filing order enjoining the debtor from filing in the present bankruptcy case and any related litigation with the trustee in any other federal or state court any further pleadings without prior order of the bankruptcy court. The order permits the debtor to file a pleading only if, among other things, the pleading “has merit.” On the debtor’s second appeal, the BAP reversed and remanded to the bankruptcy court with an instruction to delete the pre-filing order's requirement that a pleading have merit, but the BAP otherwise affirmed the pre-filing order.

Facts:

A pre-filing restriction by a federal court must, among other things, be narrowly tailored so as to closely fit the specific vice encountered. A criterion that a proposed pleading have merit is overly broad and must be stricken from the pre-filing order.

Judge(s):

Laura S. Taylor, Randall L. Dunn, and Meredith A. Jury, Bankruptcy Judges.

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