Court Opinion

ID: 9945094
Source: CourtListenerOpinion
Date Created: 2024-02-27 01:00:37.910654+00
Date Added: 2024-06-11T14:25:22.031612
License: Public Domain

Case: 23-50523           Document: 60-1         Page: 1      Date Filed: 02/26/2024

          United States Court of Appeals
               for the Fifth Circuit
                                  ____________
                                                                            United States Court of Appeals
                                                                                     Fifth Circuit
                                   No. 23-50523
                                 Summary Calendar                                  FILED
                                 ____________                               February 26, 2024
                                                                              Lyle W. Cayce
In the Matter of Mohammad Reza Assadi                                              Clerk

                                                                                  Debtor,

Mohammad Reza Assadi,

                                                                             Appellant,

                                         versus

Randolph N. Osherow; Amir Batoei,

                                                                              Appellees.
                  ______________________________

                  Appeal from the United States District Court
                       for the Western District of Texas
                            USDC No. 1:22-CV-989
                  ______________________________

Before Davis, Ho, and Ramirez, Circuit Judges.
Per Curiam: *
      This is the third appeal to this Court the pro se debtor Mohammad
Reza Assadi (Assadi) has lodged seeking review of bankruptcy court rulings

      _____________________
      *
          This opinion is not designated for publication. See 5th Cir. R. 47.5.
Case: 23-50523            Document: 60-1          Page: 2     Date Filed: 02/26/2024

                                       No. 23-50523

in this case. Unfortunately, Assadi fares no better on this appeal. After
careful review of the briefs and the record, we AFFIRM the judgment of the
district court.
                                             I.
       Assadi filed a voluntary petition under Chapter 11 of the Bankruptcy
Code after a judgment was entered against him in state court for over
$742,000.00. The state court judgment involved alleged fraudulent conduct
by Assadi in connection with two real estate properties, namely the “Austin”
property and the “Lee County” property. The bankruptcy had no significant
assets except for these two properties, and the bankruptcy court converted
the proceedings to a Chapter 7 bankruptcy proceeding. Assadi challenged
this involuntary conversion, but it was affirmed by the district court and this
Court. 1
       After considering the significant liability resulting from the state court
judgment, the trustee elected to compromise that judgment, which decision
the bankruptcy court approved. Assadi challenged that ruling, which was
affirmed by the district court and this Court. 2
       Thereafter, Assadi challenged almost every order issued by the
bankruptcy court. The rulings of the bankruptcy court affirmed by the
district court that are the subject of this appeal are: (1) order granting the
Trustee’s application to employ special appellate counsel, (2) order granting
the Trustee’s motion to pay fees of the accountants retained by the Trustee
to prepare tax returns for the bankruptcy estate, (3) order granting the motion

       _____________________
       1
           In re Assadi, No. 21-50293, 2021 WL 4889196 (5th Cir. Oct. 19, 2021).
       2
           In re Assadi, No. 22-50452, 2022 WL 17819599 (5th Cir. Dec. 20, 2022).

                                             2
 Case: 23-50523             Document: 60-1           Page: 3        Date Filed: 02/26/2024

                                         No. 23-50523

filed by Creditor Batoei for payment of post-petition attorney’s fees, and
(4) order denying Assadi’s motion for recusal.
                                               II.
        We have reviewed all of these rulings and find no error. As noted by
the bankruptcy court, hiring of special counsel to represent the estate during
the appellate process is within the Trustee’s prerogative. With regard to the
payment of accountant fees, Assadi failed to identify and challenge the
appropriateness of any specific fees and failed to support his contention that
the fees were excessive. We find no abuse of discretion by the bankruptcy
court in approving the $6,387.50 payment. We agree with the district court
that the bankruptcy court properly found that a secured creditor need not be
a prevailing party to recover attorney’s fees. 3
        Assadi also argues that his due process rights were violated because
the bankruptcy ruled on motions without conducting an evidentiary hearing.
Assadi received notice of and had an opportunity to file oppositions to the
various motions, which he did. Due process does not require a hearing on
every motion. 4
        Finally, Assadi argues (for the third time) that the bankruptcy judge
was biased and should have disqualified himself. The record reflects the
bankruptcy judge’s patience in considering Assadi’s claims and no evidence
of bias.

        _____________________
        3
         Under 11 U.S.C. §506(b), “there shall be allowed to the holder of [an allowed
secured claim secured by property], interest on such claim, and any reasonable fees, costs,
or charges provided for under the agreement or State statute under which such claim
arose.”
        4
            See In re: Krueger 812 F.3d 365, 370 (5th Cir. 2016).

                                                3
Case: 23-50523     Document: 60-1        Page: 4   Date Filed: 02/26/2024

                              No. 23-50523

                                  III.
      Because we find no error in the bankruptcy court’s rulings, we
AFFIRM the judgment of the district court.

                                   4