Franklin, In re, 84-6237
| Citation | 802 F.2d 324 |
| Decision Date | 10 October 1986 |
| Docket Number | No. 84-6237,84-6237 |
| Parties | Bankr. L. Rep. P 71,485 In re Herman J. FRANKLIN and Mary L. Franklin, Debtors. BENEFICIAL TRUST DEEDS, Herbert L. Baron, Milton Golden, Irene Golden, and Silvia Falk, Plaintiffs-Appellees, v. Herman J. FRANKLIN and Mary L. Franklin, Defendants-Appellants. |
| Court | United States Courts of Appeals. United States Court of Appeals (9th Circuit) |
Page 324
BENEFICIAL TRUST DEEDS, Herbert L. Baron, Milton Golden,
Irene Golden, and Silvia Falk, Plaintiffs-Appellees,
v.
Herman J. FRANKLIN and Mary L. Franklin, Defendants-Appellants.
Ninth Circuit.
Decided Oct. 10, 1986.
Page 325
Andrew E. Smyth, Los Angeles, Cal., for defendants-appellants.
Caprice L. Collins, Kathy Kane, Los Angeles, Cal., for plaintiffs-appellees.
Appeal from the United States District Court for the Central District of California.
Before SCHROEDER and HALL, Circuit Judges, and BROWNING, * District Judge.
CYNTHIA HOLCOMB HALL, Circuit Judge:
This case presents the question of whether a bankruptcy court retains jurisdiction to construe its own orders when a declaratory judgment action is filed in the district court after the dismissal of the underlying bankruptcy proceeding.
The facts of this case provide a striking example of how, on occasion, debtors attempt to misuse the bankruptcy mechanism and to delay and stall creditors from exercising their state law rights. Appellants Herman J. Franklin and Mary L. Franklin (the Franklins) filed no less than five bankruptcy petitions in a period of seventeen months in an effort to prevent Beneficial Trust Deeds and other appellees (Beneficial Trust), holders of a $35,000 promisory note secured by a second deed of trust on certain California real property, from foreclosing on their security. 1
On March 3, 1982, after the filing of the Franklins' second bankruptcy petition involving the subject property but before the petition's dismissal, Beneficial Trust filed a complaint seeking relief from the automatic stay, 11 U.S.C. Sec. 362, so that it might foreclose on the property. The Franklins entered into an agreement with Beneficial Trust stipulating that the stay would be lifted on June 14, 1982 at 9:00 a.m., and that this relief from the automatic stay would be "effective as against any subsequent filings on the part of these Debtors as to the above described properties under the Bankruptcy Code to which these Debtors may have recourse in the future...." The agreement was signed by Judge Dooley and filed on June 10, 1982, after the second bankruptcy petition had been dismissed, and the stipulation was later entered on June 16, 1982, two days after Beneficial foreclosed on the real property and five days after the Franklins filed their third bankruptcy petition. That third petition was dismissed as well on August 10, 1982.
On December 21, 1982, the Franklins filed a complaint in the Los Angeles Superior Court to set aside the trustee's foreclosure sale, to cancel recorded deeds resulting from the sale, to quiet title, for damages, and for declaratory and injunctive relief relating to the imminent eviction of the Franklin's tenants still residing on the property. The gravamen of the Debtors' complaint was that the filing of the third bankruptcy petition invoked the automatic stay and prevented a valid foreclosure sale on June 14. The Superior Court issued a preliminary injunction against Beneficial Trust restraining the eviction of tenants so long as the Franklins made regular payments to it and posted
Page 326
bond. When the Franklins failed to make the payments, the Superior Court dissolved the injunction and stated that it was...To continue reading
Request your trial
-
In re Eveleth Mines, LLC.
...of an inherent retained jurisdiction "to implement effectively its function of administering the Bankruptcy Code." In re Franklin, 802 F.2d 324, 326 (9th Cir.1986). "Simply put, bankruptcy courts must retain jurisdiction to construe their own orders if they are to be capable of monitoring w......
-
In re Menk
...bankruptcy court retains subject-matter jurisdiction to interpret orders entered prior to dismissal. Beneficial Trust Deeds v. Franklin (In re Franklin), 802 F.2d 324, 326-27 (9th Cir.1986); Koehler v. Grant, 213 B.R. 567, 569 (8th Cir. BAP The bankruptcy court has post-dismissal jurisdicti......
-
In re Commercial Financial Services, Inc., No. 98-05162-R
...court retains subject matter jurisdiction to interpret orders entered prior to dismissal") (citing Beneficial Trust Deeds v. Franklin (In re Franklin), 802 F.2d 324, 326-27 (9th Cir.1986); Koehler v. Grant, 213 B.R. 567, 569 (8th Cir. BAP 1997)); cf. Chambers v. NASCO Inc., 501 U.S. 32, 43-......
-
In re Aheong, BAP No. HI-01-1315-MoRyB.
...a bankruptcy case was dismissed was held impermissible because it was independent of prior rulings. Beneficial Trust Deeds v. Franklin (In re Franklin), 802 F.2d 324, 327 (9th Cir.1986) (interpreting Income Prop. Builders, 699 F.2d 963). On the other hand, seeking disallowance of a bankrupt......