Bk. Case No. 1:11-BK-10426-VK
The opinion of the court was delivered by: Present: The Honorable A. Howard Matz, U.S. District Judge
Stephen Montes Not Reported
Deputy Clerk Court Reporter / Recorder Tape No.
Attorneys NOT Present for Plaintiffs: Attorneys NOT Present for Defendants:
Proceedings: IN CHAMBERS (No Proceedings Held)
Appellant-Debtor Georges Marciano appeals from an injunction issued by
the bankruptcy court preventing him from personally participating in
the appeals from two state court judgments against him.*fn1
The bankruptcy court entered the injunction because it
concluded that the Trustee had the sole right to appeal the judgments.
Because the bankruptcy court was correct in its reasoning, this Court
AFFIRMS its decision.
The parties are well aware of the factual background underlying this appeal. In brief, Marciano filed an action in state court and the defendants to that action filed cross-complaints. After protracted litigation, the state court sanctioned Marciano for discovery abuses by striking his complaint and his answers to the cross-complaints. The state court subsequently entered a multimillion dollar judgment in favor of the cross-complainants. Those parties then filed the instant involuntary petition for bankruptcy and a Trustee was appointed. The bankruptcy court concluded that the Trustee had the sole authority to appeal from the initial state court judgment and thus, at the Trustee's request, it entered a permanent injunction precluding Marciano from interfering in that appeal.*fn2
The Court reviews the bankruptcy court's issuance of a permanent injunction for abuse of discretion. In re Reynoso, 315 B.R. 544, 549-550 (9th Cir. BAP 2004). Under an abuse of discretion standard, the district court may reverse a decision of a bankruptcy court only if it is "based on an erroneous conclusion of law or when the record contains no evidence on which [the bankruptcy court] rationally could have based that decision." In re Conejo Enterprises, Inc., 96 F.3d 346, 351 (9th Cir. 1996) (citing In re Windmill Farms, Inc., 841 F.2d 1467, 1472 (9th Cir.1988)).
The Court reviews the bankruptcy court's findings of fact for clear error. In re Palmdale Hills Property, LLC, 457 B.R. 29, 40 (9th Cir. BAP 2011); In re PW, LLC, 391 B.R. 25, 32 (9th Cir. BAP 2008). For a finding to be clearly erroneous, it must be illogical, implausible, or without support in the record. United States v. Hinkson, 585 F.3d 1247, 1261 (9th Cir. 2009) (en ...