Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-4_07-cv-01539/USCOURTS-cand-4_07-cv-01539-1/pdf.json

Nature of Suit Code: 422
Nature of Suit: Bankruptcy Appeals Rule 28 USC 158
Cause of Action: 11:101 Bankruptcy

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UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

OAKLAND DIVISION

In re:

ACTION DEVELOPMENT

Tax I.D. 02-0549448

 Debtor

 

Michael Gray, et al.

 Appellants

Lois I. Brady, Trustee

 Appellee

 

No. C 07-1539 SBA

ORDER DISMISSING CASE

ORDER TO SHOW CAUSE

Currently before the Court are Appellee Lois I. Brady’s motion for dismissal of plaintiff’s

bankruptcy appeal and motion for sanctions [Docket No. 12] and appellee Scripps Lake Merritt, LLC’s

motion for sanctions [Docket No. 15].

On January 22, 2007, the trustee in the underlying bankruptcy case, Lois I. Brady, obtained an

order from the Bankruptcy Court approving the sale of any claim or interest relating to a specific loan

to the debtor, appellant Action Development, LLC, to Scripps Lake Merrit, LLC, ("Scripps"). Brady

Decl., Exh. A. On February 1, 2007, attorney Cynthia Cox, purporting to represent the debtor (Action

Development), Michael Gray (a principal of Action Development), as well as Newtown Construction

(an unsecured creditor of the debtor in the bankruptcy proceeding) (collectively "appellants"), filed a

motion for reconsideration with the Bankruptcy Court. Brady Decl., Exh. B. On February 26, 2007, the

Bankruptcy Court sua sponte entered an order denying the motion. Kelly Decl., Exh. U. The Bankruptcy

Court found that the motion for reconsideration did not have "sufficient merit to require that it be

scheduled for hearing." Id.

On March 8, 2007, the appellants filed a Notice of Appeal, in which appellants describe that they

are appealing "the Order Denying Motion for Reconsideration of the bankruptcy judge entered on

February 26, 2007 . . . " See Docket No. 1. Appellees filed the instant motions on July 31 and August

Case 4:07-cv-01539-SBA Document 22 Filed 10/04/07 Page 1 of 8
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1, 2007, seeking dismissal of the appeal and sanctions on the grounds that: 1) the appeal was not

perfected in a timely manner; 2) the appeal is based on a meritless motion for reconsideration in which

the appellants failed to provide a single legally cognizable argument for the relief sought, making the

appeal a waste of judicial resources; and 3) the appeal is moot, as the underlying property has already

been sold. See Brady's Mot. to Dismiss [Docket No. 12] at 7. Additionally, appellees seek attorneys fees

and costs as sanctions for appellants’ filing of a frivolous appeal. Appellants did not filed any

opposition or response to either motion.

This Court's Standing Order states at paragraph 8: "The failure of the opposing party to file a

memorandum of points and authorities in opposition to any motion shall constitute a consent to the

granting of the motion." Particularly in light of the Court's previous admonition to appellants' counsel

at the June 28, 2007 case management conference that failure to prosecute this case may result in

dismissal, dismissal of the appeal with prejudice is warranted here. 

Accordingly, IT IS HEREBY ORDERED that appellee Brady's motion for dismissal of

appellants’ bankruptcy appeal and motion for sanctions [Docket No. 12] is GRANTED with respect to

the request for dismissal but DENIED with respect to the request for sanctions. Appellee Scripps Lake

Merritt, LLC's motion for sanctions [Docket No. 15] is DENIED.

IT IS FURTHER ORDERED that:

(1) Appellants and/or Appellants’ counsel of record shall appear in Courtroom 3 of

the United States Courthouse, 1301 Clay Street, Oakland, California, on

November 6, 2007, at 1:00 P.M., to show cause why appellees should not be

awarded attorney's fees and costs incurred in responding to the appeal as

sanctions against appellants Michael Gray, Action Development, LLC and

Newtown Construction, as well as their counsel of record, Cynthia L. Cox, Esq.

and Jon P. Rankin, Esq., jointly and severally.

(2) At least fourteen days prior to the above hearing, Appellants or Appellants’

counsel of record must file a Certificate of Counsel with the Clerk of the Court,

to explain why sanctions should not be imposed. The Certificate shall set forth

the nature of the case and any basis for opposition to the imposition of sanctions.

Case 4:07-cv-01539-SBA Document 22 Filed 10/04/07 Page 2 of 8
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(3) Please take notice that this Order requires both the specified court appearance

and the filing of the Certificate of Counsel. Failure to fully comply with this

order will be deemed sufficient grounds for the imposition of sanctions.

IT IS SO ORDERED.

Dated: 10/3/07 _________________________________

Saundra Brown Armstrong 

United States District Judge

Case 4:07-cv-01539-SBA Document 22 Filed 10/04/07 Page 3 of 8
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UNITED STATES DISTRICT COURT

FOR THE 

NORTHERN DISTRICT OF CALIFORNIA

IN RE: ACTION DEVELOPMENT et al,

Plaintiff,

 v.

IN RE: ACTION DEVELOPMENT et al,

Defendant. /

Case Number: CV07-01539 SBA 

CERTIFICATE OF SERVICE

I, the undersigned, hereby certify that I am an employee in the Office of the Clerk, U.S. District Court,

Northern District of California.

That on October 4, 2007, I SERVED a true and correct copy(ies) of the attached, by placing said

copy(ies) in a postage paid envelope addressed to the person(s) hereinafter listed, by depositing said

envelope in the U.S. Mail, or by placing said copy(ies) into an inter-office delivery receptacle located

in the Clerk's office.

 U.S. Bankruptcy Court, Northern District of California, Oakland

1300 Clay Street

Suite 300

P.O. Box 2070

Oakland, CA 94604

Leslie Tchaikovsky

U.S. Bankruptcy Court

Northern District of California

1300 Clay St. #300

P.O. Box 2070

Oakland, CA 94604

Dated: October 4, 2007

Richard W. Wieking, Clerk

By: LISA R CLARK, Deputy Clerk

Case 4:07-cv-01539-SBA Document 22 Filed 10/04/07 Page 4 of 8
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UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

OAKLAND DIVISION

In re:

ACTION DEVELOPMENT

Tax I.D. 02-0549448

 Debtor

 

Michael Gray, et al.

 Appellants

Lois I. Brady, Trustee

 Appellee

 

No. C 07-1539 SBA

ORDER DISMISSING CASE

ORDER TO SHOW CAUSE

Currently before the Court are Appellee Lois I. Brady’s motion for dismissal of plaintiff’s

bankruptcy appeal and motion for sanctions [Docket No. 12] and appellee Scripps Lake Merritt, LLC’s

motion for sanctions [Docket No. 15].

On January 22, 2007, the trustee in the underlying bankruptcy case, Lois I. Brady, obtained an

order from the Bankruptcy Court approving the sale of any claim or interest relating to a specific loan

to the debtor, appellant Action Development, LLC, to Scripps Lake Merrit, LLC, ("Scripps"). Brady

Decl., Exh. A. On February 1, 2007, attorney Cynthia Cox, purporting to represent the debtor (Action

Development), Michael Gray (a principal of Action Development), as well as Newtown Construction

(an unsecured creditor of the debtor in the bankruptcy proceeding) (collectively "appellants"), filed a

motion for reconsideration with the Bankruptcy Court. Brady Decl., Exh. B. On February 26, 2007, the

Bankruptcy Court sua sponte entered an order denying the motion. Kelly Decl., Exh. U. The Bankruptcy

Court found that the motion for reconsideration did not have "sufficient merit to require that it be

scheduled for hearing." Id.

On March 8, 2007, the appellants filed a Notice of Appeal, in which appellants describe that they

are appealing "the Order Denying Motion for Reconsideration of the bankruptcy judge entered on

February 26, 2007 . . . " See Docket No. 1. Appellees filed the instant motions on July 31 and August

Case 4:07-cv-01539-SBA Document 22 Filed 10/04/07 Page 5 of 8
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1, 2007, seeking dismissal of the appeal and sanctions on the grounds that: 1) the appeal was not

perfected in a timely manner; 2) the appeal is based on a meritless motion for reconsideration in which

the appellants failed to provide a single legally cognizable argument for the relief sought, making the

appeal a waste of judicial resources; and 3) the appeal is moot, as the underlying property has already

been sold. See Brady's Mot. to Dismiss [Docket No. 12] at 7. Additionally, appellees seek attorneys fees

and costs as sanctions for appellants’ filing of a frivolous appeal. Appellants did not filed any

opposition or response to either motion.

This Court's Standing Order states at paragraph 8: "The failure of the opposing party to file a

memorandum of points and authorities in opposition to any motion shall constitute a consent to the

granting of the motion." Particularly in light of the Court's previous admonition to appellants' counsel

at the June 28, 2007 case management conference that failure to prosecute this case may result in

dismissal, dismissal of the appeal with prejudice is warranted here. 

Accordingly, IT IS HEREBY ORDERED that appellee Brady's motion for dismissal of

appellants’ bankruptcy appeal and motion for sanctions [Docket No. 12] is GRANTED with respect to

the request for dismissal but DENIED with respect to the request for sanctions. Appellee Scripps Lake

Merritt, LLC's motion for sanctions [Docket No. 15] is DENIED.

IT IS FURTHER ORDERED that:

(1) Appellants and/or Appellants’ counsel of record shall appear in Courtroom 3 of

the United States Courthouse, 1301 Clay Street, Oakland, California, on

November 6, 2007, at 1:00 P.M., to show cause why appellees should not be

awarded attorney's fees and costs incurred in responding to the appeal as

sanctions against appellants Michael Gray, Action Development, LLC and

Newtown Construction, as well as their counsel of record, Cynthia L. Cox, Esq.

and Jon P. Rankin, Esq., jointly and severally.

(2) At least fourteen days prior to the above hearing, Appellants or Appellants’

counsel of record must file a Certificate of Counsel with the Clerk of the Court,

to explain why sanctions should not be imposed. The Certificate shall set forth

the nature of the case and any basis for opposition to the imposition of sanctions.

Case 4:07-cv-01539-SBA Document 22 Filed 10/04/07 Page 6 of 8
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(3) Please take notice that this Order requires both the specified court appearance

and the filing of the Certificate of Counsel. Failure to fully comply with this

order will be deemed sufficient grounds for the imposition of sanctions.

IT IS SO ORDERED.

Dated: 10/3/07 _________________________________

Saundra Brown Armstrong 

United States District Judge

Case 4:07-cv-01539-SBA Document 22 Filed 10/04/07 Page 7 of 8
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UNITED STATES DISTRICT COURT

FOR THE 

NORTHERN DISTRICT OF CALIFORNIA

IN RE: ACTION DEVELOPMENT et al,

Plaintiff,

 v.

IN RE: ACTION DEVELOPMENT et al,

Defendant. /

Case Number: CV07-01539 SBA 

CERTIFICATE OF SERVICE

I, the undersigned, hereby certify that I am an employee in the Office of the Clerk, U.S. District Court,

Northern District of California.

That on October 4, 2007, I SERVED a true and correct copy(ies) of the attached, by placing said

copy(ies) in a postage paid envelope addressed to the person(s) hereinafter listed, by depositing said

envelope in the U.S. Mail, or by placing said copy(ies) into an inter-office delivery receptacle located

in the Clerk's office.

 U.S. Bankruptcy Court, Northern District of California, Oakland

1300 Clay Street

Suite 300

P.O. Box 2070

Oakland, CA 94604

Leslie Tchaikovsky

U.S. Bankruptcy Court

Northern District of California

1300 Clay St. #300

P.O. Box 2070

Oakland, CA 94604

Dated: October 4, 2007

Richard W. Wieking, Clerk

By: LISA R CLARK, Deputy Clerk

Case 4:07-cv-01539-SBA Document 22 Filed 10/04/07 Page 8 of 8