Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-5_05-cv-01281/USCOURTS-cand-5_05-cv-01281-4/pdf.json

Nature of Suit Code: 422
Nature of Suit: Bankruptcy Appeals Rule 28 USC 158
Cause of Action: 28:0158 Notice of Appeal re Bankruptcy Matter (BAP)

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28 1 This disposition is not designated for publication and may not be cited.

Case No. C 05-01281 JF

ORDER RE MOOTNESS

(JFLC1)

**E-filed 4/4/06**

NOT FOR CITATION

IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF CALIFORNIA

SAN JOSE DIVISION

In re: UNITED STATES VOTING 

MACHINES, INC. 

_______________________________________

UNITED STATES VOTING 

MACHINES, INC.,

 Appellant,

 v.

JUDITH POWELSON,

 Respondent.

Case Number C 05-01281 JF

ORDER1 RE MOOTNESS

By Order dated January 26, 2006, this Court denied Judith Powelson’s (“Powelson”)

motion to dismiss United States Voting Machines, Inc.’s (“USVM”) bankruptcy appeal as moot. 

The Court concluded that the ongoing proceedings in Colorado did render USVM’s bankruptcy

appeal moot because it was possible that this Court could compel the Colorado state court to

return the disputed funds to the bankruptcy trustee in the Northern District of California. On

February 6, 2006, USVM filed an ex parte motion for equitable relief to restore funds, requesting

Case 5:05-cv-01281-JF Document 43 Filed 04/04/06 Page 1 of 3
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Case No. C 05-01281 JF

ORDER RE MOOTNESS

(JFLC1)

that the Court order the funds to be disgorged from the court in Colorado and transmitted to the

bankruptcy trustee in this District. Powelson opposed the motion. On February 23, 2006,

Powelson submitted a declaration, attached to which is an order issued by the Boulder County

District Court ordering the distribution of the disputed funds. On March 2, 2006, this Court

issued an order denying without prejudice USVM’s ex parte motion for equitable relief to restore

funds and requesting briefing on the issue of whether the Boulder County District Court’s order

rendered USVM’s bankruptcy appeal moot.

On March 9, 2006, USVM submitted a letter brief stating that the bankruptcy appeal is

not moot because Kenneth Malpass (“Malpass”), the president of USVM, has appealed the

Boulder County District Court’s order. USVM represented to the Court that this appeal would

create an automatic stay of that court’s order. On April 3, 2006, this Court contacted the Boulder

County District Court and confirmed that the funds at issue have not yet been disbursed, and that

the funds will not be disbursed pending the resolution of Malpass’s appeal. On March 10, 2006,

Powelson submitted a letter brief arguing, in relevant part, that the instant appeal should be

dismissed on the ground of claim preclusion.

For the reason stated in this Court’s order of January 26, 2006—that the funds at issue

have not yet been disbursed—the instant bankruptcy appeal is not moot. However, the Court is

not in a position to determine whether the appeal should be dismissed on the ground of claim

preclusion because this issue has not yet been presented by a noticed motion with full briefing. 

The Court will not reconsider its decision to deny USVM’s ex parte motion for equitable relief to

restore funds because the dispersal of the funds has been stayed by the Boulder County District

Court.

IT IS SO ORDERED. 

DATED: April 4, 2006

 

JEREMY FOGEL

United States District Judge

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Case No. C 05-01281 JF

ORDER RE MOOTNESS

(JFLC1)

This Order has been served upon the following persons:

Mariam S. Marshall mariam_m@pacbell.net,

Starrett Paul paul@starrettlaw.com

Anthony Hugo Santucci thegreat426@sbcglobal.net, thegreat@sbcglobal.net

Richard Seim mail@seimr.com,

Nanette Dumas

Office of the U.S. Trustee

280 S 1st St. #268

San Jose, CA 95113-0002

Marilyn Morgan / USBC Manager-San Jose

US Bankruptcy Court

280 South First Street

Room 3035

San Jose, CA 95113

Case 5:05-cv-01281-JF Document 43 Filed 04/04/06 Page 3 of 3