2009 D e c i sion s O p inion s of the U nit e d S t at e s C our t of Appe al s for the Thir d C ir c uit 6-25-2009 

# In Re: M a c T

ruong P r e c e de nt i al or N on-P r e c e de nt i al : N on-P r e c e de nt i al D ocke t N o . 08-3364

F o llow thi s and a dd it ion al work s at : http://d i git alc ommon s .l a w . vi ll anova . e du/thir dc ir c uit_2009

Thi s de c i sion i s br ou ght t o you for f r e e and ope n a c c e s s b y the O p inion s of the U nit e d S t at e s C our t of Appe al s for the Thir d C ir c uit at V i ll anova U nive r sity S choo l of L a

w Di git al Reposit ory

. It h as be e n a c c ept e d for inclusion in 2009 D e c i sion s b y an author i z e d a dmini s tr at or of V i ll anova U nive r sity S choo l of L a

w Di git al Reposit ory

. F or mor e inform at ion, p le as e c ont a ct Be n j amin . C arl s on@l a

w . vi ll anova . e du . Re c omme nde d C it at ion " In Re: M a c T

r uon g " (2009). 2009 D e cisio n s . P ape r 1131. http://d i git alc ommon s .l a

w . vi ll anova . e du/thir dc ir c uit_2009/1131BL D- 2 1 3 NOT P RE CE DE NT I AL UN I TED STATES CO UR T OF A PP EALS F O R T H E T H IR D C IR C U IT

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___________ I N R E : M AR YS E M AC T RU ONG a n d M AC T RU ONG, D e b t o r s M ac Truong,

A ppel l ant

____________________________________ O n A p p ea l from the U n it ed S tat es D istri ct C o u rt f o rt h e D i s t r i c to f

N e w J e r s e y ( D . C . C i vi l N o. 07- 05066) D i s t r i ctJ udge: H onor abl e Sus an D . W i gent on

____________________________________ S u b mi t t e d f

o rP o s s i b l e Di s mi s s a l P u r s u a n tt o 2 8 U. S . C. § 1 9 1 5 ( e ) ( 2 ) ( B) o r S u m m a ry A c tio n P u rs u a n t to T h ir d C ir c u it L A R 2 7 .4 a n d I.O .P . 1 0 .6 J une 11, 2009 B efor e: M C K E E , FI SH E R and C H A G A R E S , C i r cui tJ udges

( O pi ni on fi l ed: J une 25, 2009)

_________ OP I NI ON

_________ P E R C UR I AM M a c T ru o n g a p p e a ls f

ro m a n o rd e r o f

th e D istric t C o u rt d e n y in g h is m o tio n to r econs i dert he D i s t r i ctC our t ’ s pr i oror derdeny i ng hi s m ot i ons t o r eopen hi s appea l , for re c o n sid e ra tio n , an d to lift a f ili n g in ju n c tio n . F o r th e re a so n s th a t f o llo w , w e w illT he C hapt er13 cas e w as eventual l yconvert ed t o a C hapt er11 cas e. 1 M eanw hi l e, t he U SB C ent er ed an or deri m pos i ng an i ndefi ni t e fi l i ng i nj unct i on 2 ag ains t T ruo n g , h is w ife, an d “a n yen ti tyac ti n g o n their be h alf,” fin d ing that “the D eb tors h a v e e n g a g e d in d u p lica tiv e a n d v e x a tio u s litig a tio n , an d th a t th e ya re lik e lyto p e rsis t in s uch conduc t . ” 2 d ism iss th e a p p ea l pu rsua n t t o 2 8 U . S . C . § 1 9 1 5 (e)(2)(B )(i ). I. I n M a r c h 2 00 7, Truo ng a nd hi s w i fe , thr ou gh the i rc ompa nyTo- V i e t - D a o LLP, fil ed fo r C h ap ter 13 b an k rup tcyp rotec ti o n . A U n it ed S tat es B an k rup tcyC o u rt 1 ( “U SB C ”) s i t t i ng i n N ew Y or k deni ed the pet i t i on w i t h pr ej udi ce a nd i m pos ed a one - y ear bart o T ruong’ s fi l i ng futur e pet i t i ons . D es pi t e the i nj unct i on, T ruong fi l ed an i ndi vi dual C hapt er13 pet i t i on i n J ul y2007. T he U SB C agai n deni ed the pet i t i on, and r eaf fi r m ed the one- y earfi l i ng i nj unct i on. I n A ugus t2007, T ruong fi l ed a mot i on i n t he U SB C s eeki ng a hear i ng on var i ous cl ai m s agai ns tt he trus t ee of hi s bankrupt cyes t at e. T he U SB C deni ed the m o ti o n , ca ll ing the c lai m s raised there in d u p li ca ti v e o f th o se d en ied in T ruo n g ’s pr evi ous bankrupt cypr ocee di ngs . T ruong appea l ed t o t he D i s t r i ctC our tand moved for in f o rm a p a u p e ri s (“ IF P ” ) s ta tu s . T h e U S B C d e n ie d th e m o tio n . T ruong r enew ed hi s I FP appl i cat i on i n t he D i s t r i ctC our t . A ft erent er i ng an or der 2 d e n y in g h is m o tio n , the D istric t C o u rt v a c a ted its o rd e r “ b e c a u se n o f e e is a ss o c iate d w ith this B an k rup tcyap p ea l bef o re the C o u rt . ” T h e D istri ct C o u rtthen d ism issed T ruo n g ’s appea l w i thoutpr ej udi ce be caus e the B ankrupt cyC our thad notgr ant ed I FP st atus and T ruong had notpai d t he fi l i ng fee s . T he D i s t r i ctC our tdeni ed Truong’ s s ubs equentT ruong has as s ert ed thi s cl ai m ( t hatther e i s caus e forr emoval of the trus t ee unde r11 3 U . S. C . § 324( a) beca us e the trus t ee i s nots uffi ci ent l ydi s i nt er es t ed i n t he as s et s of the bankrupt cyes t at e) , i n one form / forum oranother , count l es s t i m es thr oughoutthe p rec ed ing y ea rs. W e p rev iou slyrec o g n ized this fac t i n a p u b li sh ed o p inion . S ee In re T ruong , 51 3 F . 3d 91 , 92 -94, 94 n. 4 (3d C i r. 20 08 ). B efore t his app eal , T ruong m ost r ece nt l yatt empt ed t o r ai s e thi s cl ai m i n t hi s C our ti n I n r e Truong, 285 F. A pp’ x 837 ( 3d C i r . J ul y7, 2008) , w her e w e r efus ed t o cons i derT ruong’ s m ot i ons for“r emoval of the trus t ee, i nj unct i ve r el i ef f r om t he trus t ee, and t o di s qual i fythe trus t ee, as theyar e not pr oper l ybefor e us . ” I d. at840- 41. 3 m ot i ons t o r eopen hi s cas e and hi s m ot i on t o di s qual i fyboth hi s bankrupt cytrus t ee a nd th e tru ste e ’s a tto rn e y s b a se d o n a lleg e d c o n f licts o f in ter e st. 3 S h o rtlyth e re a f

ter , the D istric t C o u rt, n o tin g th a t T ru o n g h a d f a iled to c o m p lyw ith the U SB C ’ s fi l i ng i nj unct i on, i m pos ed i t s ow n fi l i ng i nj unct i on. T ruong t hen fi l ed a m ot i on r eques t i ng s ever al form s of r el i ef: 1) r econs i der at i on of the D i s t r i ctC our t ’ s or der deny i ng hi s m ot i ons t o r eopen a nd t o di s qual i fythe trus t ee; 2) an expl anat i on as t o w hy the D i s tr i ctC our t ’ s or deral l egedl ygr ant i ng I FP st atus i s notval i d; and 3) vaca turof the D i s tr i ctC our t ’ s fi l i ng i nj unct i on. T he D i s t r i ctC our tdeni ed the mot i on, s t at i ng that T ruong “has notbeen gr ant ed i n form a paupe r i s s t atus bythe B ankrupt cyC our t , has not pai d the fi l i ng fee i n t hi s m att erand has notr ai s ed anynew i s s ues . ” Truong appeal ed fro m that o rde r. II. W e h av e jurisdicti o n p u rsua n t t o 2 8 U . S . C . § 1 2 9 1 an d rev iew the D istri ct C o u rt ’s deni al of Truong’ s m ot i on t o pr ocee d I FP, di s m i s s al forfai l ur e t o payfee s and mot i on for r econs i der at i on forabus e of di s cr et i on. See M ax’ s Seafood Café e x r el . L ou A nn, I nc. v.4

Q ui nt er os , 176 F. 3d 669, 673 ( 3d C i r . 1999) ; J ones v. Z i m m erm an, 752 F. 2d 76, 78 ( 3d Ci r . 1 9 8 5 ) . Ha v i n g g r a n t e d T ru o n g l e a v e t o p r o c e e d i n f o r ma p a u p e r i s o n a p p e a l , we m u st d ism iss h is a p p e a l p u rsu a n t to 2 8 U .S .C . § 1 9 1 5 (e )(2 )(B )(i) if it i s f riv o lo u s, i.e., i f

it h a s n o a rg u a b le b a s is in la w . S e e N e itz k e v . W illia m s , 4 9 0 U .S . 3 1 9 , 3 2 5 (1 9 8 9 ). III . I FP det erm i nat i ons ar e t o be made s ol el yon t he bas i s of i ndi gence . See D eut s ch v. U ni t ed St at es , 67 F. 3d 1080, 1084 n. 5 ( 3d C i r . 1995) ; R om an v. J eff es , 904 F. 2d 192, 194 n. 1 ( 3d C i r . 1990) . N evert hel es s , “‘ extr eme ci r cumst ance s ’ m i ghtj us t i fydeny i ng an otherw i s e qual i fi ed af

fi antl eave t o pr ocee d i n form a paupe r i s . ” D eut s ch, 67 F. 3d at1084 n .5 . S p e c if

ica lly , the S u p re m e C o u rt h a s s tate d th a t IF P sta tu s s h o u ld n o t b e g iv e n to i ndi vi dual s w ho have a bus ed the s y s t em. See I n r e Si ndr am, 498 U . S. 177, 180 ( 1991) (pe r cu ri am ). W e a g re e w ith th e D istric t C o u rt th a t T ru o n g f a iled to d e m o n stra te a n in a b ili tyto paythe nec es s aryfi l i ng fee . See 28 U . S. C . 1915( a) . I n t he I FP appl i cat i on thatT ruong s ubm i t t ed t o t he D i s t r i ctC our t , he i ndi cat ed thathe had r ent al i ncome of $3000 a m ont h, tw o car s ( though one had i t s “t i t l e i n l i t i gat i on”) , “l es s than $500 ave r age” i n a bank acc ount , and an I R A acc ountw or t h $8000. G i ven thati nform at i on, w e conc l ude thatt he D i s tr i c tCour tdi d n ota bu s e i t s di s c r e t i on w he n i tde ni e d Truo ng ’ s mot i on t o p r oc e e d I FP, l at erdi s m i s s ed Truong’ s appea l , and deni ed hi s s ubs equentm ot i ons t o r eopen a nd forO n appea l T ruong perpetuat es hi s m i s t aken be l i ef thathe w as gr ant ed I FP bythe 4 D istri ct C o u rto n D ec em b er 1 0 , 2 0 0 7 . T h at ord er m ere lyv ac ated the D istri ct C o u rt ’s d e n ia l o f T ru o n g ’s IF P a p p lic a tio n ; it d id n o t g ra n t I F P s ta tu s . F o r th ese rea so n s, w e d o n o t fi n d an ab u se o f d iscreti o n in the D istri ct C o u rt ’s 5 im p o sit ion o f a fil ing injun cti o n . S ee A b d u l- A k b ar v . W atso n , 9 0 1 F . 2 d 3 2 9 , 3 3 1 (3d C ir . 1990) ( “[w ] e r evi ew t he i s s uance of an or derbarr i ng fur t herfi l i ng of l i t i gat i on foran a b u s e o f d is c re tio n ” ). 5 r econs i der at i on. 4 B as ed on the for egoi ng, w e nee d notdet erm i ne w hetherthi s cas e pr es ent s the e x tr e m e c ir c u m s ta n c e s ju s tif y in g d e n ia l o f

IF P s ta tu s to a n o th e rw is e d e s titu te litig a n t. H o w e v e r, w e n o te th a t T ru o n g h a s c o n sis ten tlysp u rn e d c o u rt o rd e rs. A n d th e b u lk o f h is vol um i nous fi l i ngs appea rt o be no more than att empt s t o r e- l i t i gat e i s s ues al r eady d e c id e d a g a in st h im a s a tac tica l m o v e to p ro lo n g h is b a n k ru p tcy pr o c e e d in g s s e e m in g ly a d i n f i n i tu m. 5 A c c o rd in g ly , the a p p e a l is u tterlylac k in g in leg a l m e rit an d w e w ill d ism iss it p u rsua n t t o 2 8 U . S . C . § 1 9 1 5 (e)(2)(B )(i ).