Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_05-cv-01103/USCOURTS-caed-2_05-cv-01103-1/pdf.json

Nature of Suit Code: 190
Nature of Suit: Other Contract Actions
Cause of Action: 15:1692 Fair Debt Collection Act

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IN THE UNITED STATES DISTRICT COURT

FOR THE EASTERN DISTRICT OF CALIFORNIA

GREGORY HOBBS, et al.,

Plaintiffs, CIV S-05-1103 FCD KJM PS

v.

PATENAUDE & FELIX, et al., ORDER AND

Defendants. FINDINGS & RECOMMENDATIONS

 /

 Findings and recommendations were filed October 27, 2005 recommending

dismissal of this action because it appeared plaintiffs had abandoned the litigation inasmuch as

there appeared to be no service of summons and plaintiffs did not appear at the status conference.

Plaintiffs filed objections and now two defendants have filed responses to the complaint. The

October 27, 2005 findings and recommendations therefore will be vacated.

However, both the motion to dismiss filed by defendant Coen and the answer filed

by defendant Hunt and Henriques indicate plaintiffs have filed for bankruptcy. A review of the

docket in the Bankruptcy Court for the Eastern District of California reveals plaintiffs filed for

Chapter 7 bankruptcy on October 12, 2005 (Case no. 05-36151). In the Chapter 7 proceedings,

plaintiffs are represented by counsel. The voluntary petition does not list the claims alleged in

the instant action as an asset. As one court has observed, “[t]he debtor, once he institutes the

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bankruptcy process, disrupts the flow of commerce and obtains a stay and the benefits derived by

listing all his assets. The Bankruptcy Code and Rules impose upon the bankruptcy debtors an

express, affirmative duty to disclose all assets, including contingent and unliquidated claims.”

Hamilton v. State Farm Fire & Casualty Company, 270 F.3d 778, 785 (9th Cir. 2001) (emphasis

in original; internal citations omitted). In the instant case, filed June 3, 2005 -- four months prior

to the institution of bankruptcy proceedings -- plaintiffs claim both monetary damages and

restitution. Plaintiffs were well aware of the claims made in their complaint at the time they filed

for bankruptcy and failed to disclose this asset in their voluntary petition. As such, judicial

estoppel must be invoked to protect the integrity of the bankruptcy process. Id. This case should

therefore be dismissed as judicially estopped. 

Accordingly, IT IS HEREBY ORDERED that:

1. The October 27, 2005 findings and recommendations are vacated;

2. The hearing date of January 18, 2006 on defendant Coen’s motion to dismiss is

vacated; and

IT IS HEREBY RECOMMENDED that this action be dismissed.

These findings and recommendations are submitted to the United States District

Judge assigned to the case pursuant to the provisions of 28 U.S.C. § 636(b)(l). Within ten days

after being served with these findings and recommendations, any party may file written

objections with the court and serve a copy on all parties. Such a document should be captioned

“Objections to Findings and Recommendations.” Any reply to the objections shall be served and

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filed within ten days after service of the objections. The parties are advised that failure to file

objections within the specified time may waive the right to appeal the District Court's order. 

Martinez v. Ylst, 951 F.2d 1153 (9th Cir. 1991).

DATED: December 1, 2005.

______________________________________

UNITED STATES MAGISTRATE JUDGE

 

006

hobbs.fts

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