Document ID: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_18-cv-02823/USCOURTS-cand-3_18-cv-02823-0/pdf.json

Parties Involved:
Luke Brugnara
Appellant
Paul Greenfield
Defendant
Janina M. Hoskins
Appellee
Office of the U.S. Trustee/SF
Appellee

Document Text:

United States District Court

For the Northern District of California

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IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF CALIFORNIA

In re: 

BRUGNARA PROPERTIES VI

Debtor. /

BRUGNARA PROPERTIES VI,

Appellant,

 v.

KAY BRUGNARA, et al.,

Appellees. /

KAY BRUGNARA,

Appellant,

 v.

OFFICE OF THE U.S. TRUSTEE/SF and

JANINA M. HOSKINS, Chapter 7 trustee,

Appellees. /

No. C 18-02787 WHA

No. C 18-02822 WHA

No. C 18-02823 WHA

No. C 18-03440 WHA

ORDER TO FILE BRIEFING

AND VACATING HEARING

This order concerns the cluster of appeals challenging the bankruptcy court’s conversion

of the case from a Chapter 11 to a Chapter 7 in the In re Brugnara Properties VI proceedings. 

Appellants have failed to file any briefing in support of their appeals. Mr. Paul Greenfield, a

Case 3:18-cv-02823-WHA Document 8 Filed 12/11/18 Page 1 of 4
United States District Court

For the Northern District of California

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28 * The following motions are DENIED AS MOOT: Case No. 18-02787, Dkt. No. 29; 18-02822, Dkt.

Nos. 60, 62, 66; 18-2823, Dkt. No. 6; and 18-3440, Dkt. No. 3. 

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secured creditor and proposed intervenor, now moves to, inter alia, dismiss the appeals. 

This order follows full briefing. 

Pursuant to Local Rule 7-1(b), this order finds the motions suitable for submission

without oral argument and hereby VACATES the hearing scheduled for December 13. For the

reasons explained below, appellants are ordered to file their opening briefs on appeal by

DECEMBER 21 AT NOON and creditor Greenfield’s motions are DENIED AS MOOT.

*

On June 7, during the hearing on the motion for an emergency stay, appellees argued that

the instant appeals concern only the bankruptcy court’s conversion of the case from a Chapter 11

to a Chapter 7 and that the IRS and FTB tax liens and nominee status of the debtor did not have

any impact on the bankruptcy court’s decision to convert. That argument was not supported by

the record. The subsequent order from the bench (memorialized in the June 7 written order)

stayed the sale of the family residence pending the bankruptcy court’s ruling on whether or not

Brugnara Properties VI (the home owner) is a nominee and/or alter ego of Luke Brugnara (the

delinquent taxpayer) (Case No. 18-02787 Dkt. Nos. 26 at 5–9, 37–41; 21).

Creditor Greenfield moves to consolidate the appeals related to the bankruptcy court’s

denial of the motion to reconsider conversion (Case Nos. 18-02787, 02822, 02823, and 03440)

and to dismiss them for failure to file any briefing (Case Nos. 18-02787, 18-02822), lack of

prosecution, failure to follow court orders (Case No. 18-03440), and lack of jurisdiction (Case

No. 18-02823) (Case No. 18-02822, Dkt. No. 60). Creditor Greenfield also renews his motion to

vacate the stay (Case No. 18-02822, Dkt. No. 62). 

An appellant must file the record on appeal and a statement of the issues to be presented. 

FRBP 8009(a). Trustee Janina M. Hoskins submitted the audio recording from the bankruptcy

court’s hearing on the Trustee’s Report Under Bankruptcy Code § 1106(a)(5) and

Recommendation to Convert Case to a Case Under Chapter 7 of the Bankruptcy Code on

June 11 (Case No. 18-02787, Dkt. No. 24-2). Given the close relationship of the appeals, a

Case 3:18-cv-02823-WHA Document 8 Filed 12/11/18 Page 2 of 4
United States District Court

For the Northern District of California

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single submission will suffice. (Appellants, however, are ORDERED to file a written transcript of

the bankruptcy court’s hearing as well.) 

The failure to brief is another matter. 

Appellants’ failure to take any required step other than the timely filing of a notice of

appeal is grounds for dismissal of their appeals. FRBP 8003(a)(2). Dismissal, however, would

be premature at this stage. See Greco v. Stubenburg, 859 F.2d 1401 (9th Cir. 1988) (alternative

measures to dismissal must first be considered). Nonetheless, the lackadaisical pace of these

appeals is at an end. 

Before reaching the merits of the appeals or the standing of the parties and creditor

Greenfield, all appellants in the above cases are hereby ordered to file their initial briefs on

appeal by December 21 at noon. All briefing should include a section on each appellant’s

standing and clarify this court’s jurisdiction to review the issue(s) raised. Failure to comply or

address these issues in good faith may result in dismissal of the appeals. 

Creditor Greenfield also renews his motion to vacate the stay, and the Chapter 7 trustee

of the Brugnara Properties VI estate joins, requesting that the stay should be lifted effective

January 31, subject to the debtor seeking a further stay (Case No. 18-02822, Dkt. Nos. 62, 65). 

That request is DENIED without prejudice, as it presumes the bankruptcy court will issue its

ruling on the same day as the evidentiary hearing. 

* * *

In sum, all appellants in the above listed cases shall file their briefs on appeal by

DECEMBER 21 AT NOON. Failure to comply may result in the dismissal of the appeals. 

The audio recording of the bankruptcy court proceedings must be supplemented with a written

transcript. The December 13 hearing is VACATED. The stay issued on June 7 remains in effect

Case 3:18-cv-02823-WHA Document 8 Filed 12/11/18 Page 3 of 4
United States District Court

For the Northern District of California

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pending the bankruptcy court’s ruling. In no event shall this order be used to continue the

January 2019 hearing before the bankruptcy court. 

IT IS SO ORDERED.

Dated: December 10, 2018. 

WILLIAM ALSUP

UNITED STATES DISTRICT JUDGE

Case 3:18-cv-02823-WHA Document 8 Filed 12/11/18 Page 4 of 4