Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_07-cv-00447/USCOURTS-caed-2_07-cv-00447-0/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)

---

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

1

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF CALIFORNIA

In re: No. 2:07-cv-00447-MCE

LAWRENCE E. ORMSBY and 

CINDY J. ORMSBY,

Debtors.

MEMORANDUM AND ORDER

LAWRENCE E. ORMSBY,

Appellant,

v.

FIRST AMERICAN TITLE COMPANY

OF NEVADA, a Nevada

Corporation,

Appellee.

----oo0oo----

Appellant Lawrence E. Ormsby (“Debtor”) has appealed the

Bankruptcy Court’s judgment of non-dischargeability in favor of

First American Title Company (“Creditor”), which is now before

this Court. 

///

Case 2:07-cv-00447-MCE Document 36 Filed 02/26/08 Page 1 of 5
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

 Because oral argument will not be of material assistance, 1

the Court orders this matter submitted on the briefs. E.D. Cal.

Local Rule 78-230(h). 

2

Creditor had filed a Motion for Attorney Fees with the Bankruptcy

Court, which subsequently, on notice of Debtor’s appeal, dropped

the motion from the court’s calendar to be reset on twenty (20)

days’ notice upon completion of the appellate process. Creditor

has now filed with this Court its Motion to Withdraw the

Reference re Creditor’s Motion for Attorney Fees, asking this

Court to consider the attorney fee issue along with the

underlying appeal.1

BACKGROUND

Creditor obtained a Nevada State Court judgment against

Debtor, who subsequently filed for Chapter 7 bankruptcy

protection in the Bankruptcy Court for the Eastern District of

California, Sacramento Division. On October 25, 2005, Creditor

filed a complaint with the Bankruptcy Court to establish that the

judgment owed it by Debtor was non-dischargeable under 11 U.S.C.

§ 523(a)(4) and (a)(6). On May 18, 2006, Creditor filed for

Summary Judgment, which was granted by the court on November 17,

2006. Debtor filed for reconsideration on November 22, 2006,

which was denied by the court on January 30, 2007. Debtor filed

an appeal to the Bankruptcy Appellate Panel, which was followed

by Creditor’s filing of an election to transfer the appeal to

this Court on February 22, 2007.

///

Case 2:07-cv-00447-MCE Document 36 Filed 02/26/08 Page 2 of 5
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

3

Creditor’s Motion for Attorney Fees, in which it requested

$66,681.30 for the work performed in pursuing the nondischargeability claim, was filed with the Bankruptcy Court on

December 18, 2006. The hearing for the motion was continued to

July 2, 2007 to await the potentially dispositive opinion of the

United States Supreme Court in Travelers Casualty & Surety Co. V.

Pacific Gas & Electric Co., __ U.S. __, 127 S.Ct. 1199 (2007). 

Although the Supreme Court decision favored Creditor’s position,

on July 11, 2007, the court dropped the Motion from the Court’s

calendar to be reset on twenty (20) days’ notice upon completion

of the appellate process.

On August 2, 2007, Creditor filed with this Court a Motion

to Withdraw the Reference Re Creditor’s Motion for Attorney Fees

pursuant to 28 U.S.C. § 157(d) and Fed. R. Bankr. P. 5011(a). 

Debtor has not filed any opposition to the motion.

ANALYSIS

Under 28 U.S.C. § 157(a), “[e]ach district court may provide

that any or all cases under title 11 and any or all proceedings

arising under title 11 or arising in or related to a case under

title 11 shall be referred to the bankruptcy judges for the

district.” Additionally, § 157(d) provides that “[t]he district

court may withdraw, in whole or in part, any case or proceeding

referred under this section, on its own motion or on timely

motion of any party, for cause shown.” 

///

///

Case 2:07-cv-00447-MCE Document 36 Filed 02/26/08 Page 3 of 5
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

4

“In determining whether cause exists, a district court should

consider the efficient use of judicial resources, delay and costs

to the parties, uniformity of bankruptcy administration, the

prevention of forum shopping, and other related factors.” 

Security Farms v. Int’l Bhd. of Teamsters, Chauffers,

Warehousemen & Helpers, 124 F.3d 999, 1008 (9th Cir. 1997).

Creditor asserts that the efficient use of judicial

resources strongly suggests that this Court hear both the

underlying appeal of the Bankruptcy Court’s determination of nondischargeability of the debt owed to Creditor by Debtor, and

Creditor’s Motion for Attorney Fees that were incurred in

achieving that result. This Court agrees. A court from which an

appeal can be taken need not wait for a final determination to

award attorney fees, but may “avoid piecemeal appeals by promptly

hearing and deciding claims to attorney’s fees.” White v. New

Hampshire Department of Employment Security, 455 U.S. 445, 454

(1982). Given that Debtor’s appeal is now before this Court,

deciding Creditor’s attorney fee motion upon resolution of the

appeal may prevent an otherwise unnecessary return of the issue

to this Court, and thereby serve the interests of judicial

economy. Doing so will prevent an unduly lengthy postponement of

the fee consideration, should an appeal be again taken from the

bankruptcy court, and will allow a determination of any award

when the relevant circumstances will still “be fresh in the mind”

of this Court. Masalosalo v. Stonewall Ins. Co., 718 F.2d 955,

957 (9th Cir. 1983). Therefore, Creditor’s Motion to Withdraw

the Reference re Creditors’ Motion for Attorney Fees is GRANTED.

///

Case 2:07-cv-00447-MCE Document 36 Filed 02/26/08 Page 4 of 5
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

5

CONCLUSION

Based on the foregoing, Creditor’s Motion to Withdraw the

Reference Re Creditors’ Motion for Attorney Fees is GRANTED. 

Creditor is directed to file its Motion for Attorneys Fees with

this Court. The motion shall be noticed and briefed in

accordance with the Federal Rules of Civil Procedure and the

Local Rules of the Eastern District.

IT IS SO ORDERED.

Dated: February 25, 2008

_____________________________

MORRISON C. ENGLAND, JR.

UNITED STATES DISTRICT JUDGE

Case 2:07-cv-00447-MCE Document 36 Filed 02/26/08 Page 5 of 5