In Re: Robert W. Hunt, a medical corporation
Filing
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OPINION ON APPEAL FROM BANKRUPTCY COURT by Judge Percy Anderson: The Court hereby DISMISSES the Appeal for failure to comply with the pre-filing order issued in 15-667 AG. In the alternative, the Court AFFIRMS the Bankruptcy Court's Orders and finds there was no abuse of discretion. (see document for further details) (Made JS-6. Case Terminated.) (bm)
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UNITED STATES DISTRICT COURT
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CENTRAL DISTRICT OF CALIFORNIA
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In re ROBERT W. HUNT M.D., a
medical corporation,
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Debtor,
No.
CV 20-2676 PA
OPINION ON APPEAL FROM
BANKRUPTCY COURT
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PELI POPOVICH HUNT, CARMEN
POPOVICH, MIGUEL POPOVICH, and
GASTON POPOVICH,
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Bankruptcy Case No. 2:11-bk-58228-ER
Appellants,
v.
PETER C. ANDERSON, U.S. Trustee,
DAVID M. GOODRICH, Chapter 7
Trustee, and ELISSA MILLER, Chapter
7 Trustee,
Appellees.
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Before the Court is a pro se appeal filed by Peli Popovich Hunt (“Hunt”), Carmen
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Popovich, Miguel Popovich, and Gaston Popovich (collectively, “Appellants”). Appellants
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challenge the Bankruptcy Court’s February 14, 2020 Order rejecting a document presented
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for filing by Hunt pursuant to the Court’s Order determining Hunt to be a vexatious litigant.
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Appellants also challenge the Bankruptcy Court’s March 9, 2020 Order Granting
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Compromise Motion and Approving Stipulation Between Elissa D. Miller, Chapter 7
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Trustee for the Estate of Peli Popovich Hunt, and David M. Goodrich, Chapter 7 Trustee for
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the Estate of Robert W. Hunt, M.D., a Medical Corporation.
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Pursuant to Rule 78 of the Federal Rules of Civil Procedure and Local Rule 7-15, the
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Court finds that this matter is appropriate for decision without oral argument. For the
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reasons discussed below, the Court hereby DISMISSES this appeal for failure to comply
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with the Pre-Filing Order issued in 15-667 AG, which determined Hunt to be a vexatious
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litigant and set forth specific pre-filing requirements that Hunt must satisfy in order to
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initiate an bankruptcy appeal. In the alternative, the Court AFFIRMS the Bankruptcy
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Court’s Orders on the basis that there was no abuse of discretion.
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I.
Background
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On October 16, 2014, the Bankruptcy Court issued an Order determining Peli
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Popovich Hunt, individually and as Trustee of the Robert and Peli Hunt Living Trust and as
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agent of Robert W. Hunt M.D., a Medical Corporation, to be a vexatious litigant. The
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Bankruptcy Court imposed pre-filing requirements against Hunt, instructing her that if she
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seeks to file any further pleadings in this case, she must first deliver a copy of the pleadings
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to chambers. The Bankruptcy Court would approve all filings it deems not to be frivolous or
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duplicative.
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On February 4, 2020, Appellee David M. Goodrich filed a Motion for Order
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Authorizing and Approving a Stipulation Between Elissa D. Miller, Chapter 7 Trustee for
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the Estate of Peli Popovich Hunt, and David M. Goodrich, Chapter 7 Trustee for the Estate
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of Robert W. Hunt, M.D., a Medical Corporation pursuant to Bankruptcy Rule 9019
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(“Compromise Motion”). On February 14, 2020, Hunt presented for filing a “Notice of
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Opposition and Request for a Hearing” in response to the Compromise Motion. That same
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day, the Bankruptcy Court issued an order rejecting Hunt’s proposed opposition brief,
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finding that it was duplicative and frivolous and therefore was barred by the October 16,
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2014 Vexatious Litigant Order. The Clerk of the Court was directed to not enter the
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proposed opposition brief on the docket. On March 9, 2020, the Bankruptcy Court granted
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the Compromise Motion and approved the Stipulation between the Chapter 7 Trustees.
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On March 23, 2020, Appellants filed a Notice of Appeal. The Notice of Appeal
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identifies the Bankruptcy Court’s February 14, 2020 Order as the subject of appeal. (See
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Dkt. 1 at 2-3 (subject of appeal is the “denial of leave to file opposition” and Appellants
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state that “[t]he notice of appeal (NOA) . . . takes the February 14, 2020 order . . . up on
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appeal.”).) Appellants then filed an Errata and Amended Notice of Appeal, which appears
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to indicate that Appellants is also appealing the Court’s March 9, 2020 Order granting the
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Compromise Motion. (See Dkt. 2 at 2-3 (subject of appeal includes both “denial of leave to
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oppose” and “order grant [sic] compromise and compatuation [sic]”).) Appellants have filed
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an Opening Brief and Appendix. (Dkts. 13 and 14.) Appellee David M. Goodrich has filed
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an Answering Brief brief and Appendix. (Dkts. 16 and 17.)
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II.
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Jurisdiction
Title 28 U.S.C. § 158(a) gives the district court jurisdiction to hear appeals from the
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bankruptcy court regarding “final judgments, orders, and decrees.” 28 U.S.C. § 158(a).
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III.
Standard of Review
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The Bankruptcy Court’s decision to reject a proposed filing under a vexatious litigant
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order is reviewed for abuse of discretion. See In re Haugen, 243 F. App’x 288, 290 (9th Cir.
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2007); In re Melcher, 2017 U.S. Dist. LEXIS 162760, at *4 (N.D. Cal. Sept. 30, 2017);
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Melcher v. Richardson, 2016 U.S. Dist. LEXIS 112502, at *3 (N.D. Cal. Aug. 22, 2016).
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The Bankruptcy Court’s approval of a compromise is reviewed for abuse of discretion. In re
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Hooper, 2012 Bankr. LEXIS 680, *13 (9th Cir. B.A.P. Feb. 14, 2012) (citing In re Debbie
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Reynolds Hotel & Casino, Inc., 255 F.3d 1061, 1065 (9th Cir. 2001)). “A bankruptcy court
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abuses its discretion if it applies the wrong legal standard, misapplies the correct legal
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standard, or makes factual findings that are illogical, implausible, or without support in
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inferences that may be drawn from the facts in the record.” In re Esterlina Vineyards &
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Winery, LLC, 2018 Bankr. LEXIS 760, at *8 (9th Cir. B.A.P. Mar. 13, 2018) (citing
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TrafficSchool.com, Inc. v. Edriver Inc., 653 F.3d 820, 832 (9th Cir. 2011)).
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IV.
Discussion
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A.
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“Federal courts can regulate the activities of abusive litigants by imposing carefully
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Failure to Comply With the Pre-Filing Order Issued in 15-667 AG
tailored restrictions under [] appropriate circumstances.” Ringgold-Lockhart v. Cty. of Los
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Angeles, 761 F.3d 1057, 1061 (9th Cir. 2014) (citing De Long v. Hennessey, 912 F.2d 1144,
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1147 (9th Cir. 1990)) (quotations omitted). “[E]njoining litigants with abusive and lengthy
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[litigation] histories is one such . . . restriction that courts may impose.” Id. (citing De Long,
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912 F.2d at 1147). “Such pre-filing orders may enjoin the litigant from filing further actions
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or papers unless he or she first meets certain requirements, such as obtaining leave of the
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court or filing declarations that support the merits of the case.” Weissman v. Quail Lodge,
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Inc., 179 F.3d 1194, 1197 (9th Cir. 1999). District courts have discretion to dismiss filings
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submitted in violation of a vexatious litigant order. See Gilbert v. Rothstein, 125 F. App’x
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182, 183 (9th Cir. 2005).
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Hunt has initiated several bankruptcy appeals over the past few years. See, e.g., In re
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Hunt, 2015 U.S. Dist. LEXIS 195073, at *3-4 (C.D. Cal. July 8, 2015) (dismissing Hunt’s
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appeal as moot); In re Hunt, 2017 U.S. Dist. LEXIS 150310, n.1 (C.D. Cal. Sept. 15, 2017)
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(dismissing Hunt’s appeal and noting that “Appellant [Hunt] has been declared a vexatious
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litigant in the past, and has a habit of submitting incoherent motions and appeals.”); In re
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Robert W. Hunt M.D., 2020 U.S. Dist. LEXIS 80301, at *6-8 (C.D. Cal. Feb. 26, 2020)
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(dismissing Hunt’s appeal).
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On May 4, 2015, the District Court determined Hunt to be a vexatious litigant. See In
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re Hunt, CV 15-667 AG, Dkt. 46 (“Pre-Filing Order”). The Court stressed that Hunt “has
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consistently imposed various significant burdens on the Court’s resources and time by . . .
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filing numerous appeals from a bankruptcy adversary proceeding, incomprehensible
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documents, and countless errata.” (Id.) Hunt’s actions demonstrated that she “does not
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listen to the Court and fails to effectively advocate on her behalf. She appears unwilling to
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accept any decision not in her favor.” (Id. (emphasis in original).) The Court even found
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that “a vast majority of [Hunt’s] filings and actions are frivolous.” (Id.)
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For these reasons, the Pre-Filing Order placed several restrictions on Hunt for
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initiating appeals from bankruptcy case 2:11-bk-58228-ER. Pursuant to the Pre-Filing
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Order, Hunt must submit to the Clerk of the Court (1) a copy of the proposed appeal or
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filing, (2) a letter requesting that it can be filed, (3) a copy of the 15-667 order finding Hunt
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to be a vexatious litigant, and (4) a $100 bond. The Clerk will then forward the documents
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to a judicial officer for a determination whether the filing should be accepted. The Ninth
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Circuit concluded that the District Court did not abuse its discretion in declaring Hunt a
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vexatious litigant and imposing these pre-filing restrictions. See In re Hunt, 693 Fed. Appx.
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595, 596 (2017).
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In this case, Hunt has appealed an order from bankruptcy case 2:11-bk-58228-ER, but
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has failed to comply with the pre-filing requirements established in the 15-667 AG Pre-
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Filing Order. It appears that Hunt attempted to give a $100 bond to the Bankruptcy Court
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clerk, who refused to accept it. (See Dkt. 2 at 3.) Hunt failed to submit to the Clerk of the
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Court (1) a copy of her Notice of Appeal, (2) a letter requesting that it can be filed, (3) a
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copy of 15-667 AG Pre-Filing Order finding Hunt to be a vexatious litigant, and (4) a $100
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bond. Instead, Hunt filed the appeal directly with this Court, even though she has
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successfully complied with the pre-filing requirements in other instances. See In re Hunt,
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2015 U.S. Dist. LEXIS 195073, at *6 (“Appellant [Hunt] has posted one or more bonds
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complying with the Court’s Order finding her a vexatious litigant. These bonds are
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ORDERED returned to Appellant.”). Because the plain language of the Pre-Filing Order
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issued in 15-667 AG prohibits Hunt from filing appeals without prior approval, the appeal is
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hereby dismissed.
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The fact that Carmen Popovich, Miguel Popovich, and Gaston Popovich are named
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appellants, but are not bound by the 15-667 AG pre-filing requirements, does not change this
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Court’s analysis. This appeal challenges the Bankruptcy Court’s rejection of a proposed
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opposition brief that was submitted by Hunt, not the other appellants. The proposed brief
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contains only Hunt’s contact information and signature, and there is no indication that the
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other appellants participated in the submission. (Dkt. 2 at 23-24.) Therefore, the Court
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finds that Hunt has included the other appellants in the caption on this appeal in an attempt
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to circumvent the pre-filing requirements imposed against her.
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“[S]ome courts have construed pre-filing injunctions broadly to effectuate the
purpose of the injunction and prevent circumvention of the injunction.” In re Robert W.
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Hunt M.D., 2020 U.S. Dist. LEXIS 80301, at *8-9 (collecting cases). “Plaintiff should not
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be allowed to circumvent the court that issued the order by asking this Court to narrow the
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order or decline to enforce it.” Justice v. Koskinen, 109 F. Supp. 3d 142, 149 (D.D.C.
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2015), aff’d, 672 F. App’x 6 (D.C. Cir. 2016); see also Tangwall v. Compton, 2020 U.S.
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Dist. LEXIS 86503, at *3 (D. Alaska May 18, 2020) (“Tangwall . . . uses other individuals
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and entities to make filings on his behalf to circumvent the Vexatious Litigant Order
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entirely. Accordingly, . . . the Court intends to enter a Supplemental Vexatious Litigant
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Order to address Mr. Tangwall’s ongoing vexatious conduct.”). For these reasons, the Court
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construes the Pre-Filing Order issued in 15-667 AG to cover this appeal, and Appellants’
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failure to comply with the pre-filing requirements is grounds for dismissal.
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B.
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In the alternative, the Court finds no evidence that the Bankruptcy Court has abused
No Abuse of Discretion in Bankruptcy Court’s Orders
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its discretion in the underlying bankruptcy action. The Court has reviewed Hunt’s proposed
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“Notice of Opposition and Request for a Hearing,” as well as the Bankruptcy Court’s order
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rejecting the document in accordance with its prior Vexatious Litigant Order. Hunt’s
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proposed opposition brief was incoherent, primarily addressed irrelevant matters, and failed
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to present any meritorious arguments as to why the Compromise Motion should be denied.
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In rejecting this document, the Bankruptcy Court did not make any factual findings
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that are illogical, implausible, or without support of inferences that may be drawn from the
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facts in the record. In other words, there was no abuse of discretion in finding that Hunt’s
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proposed brief was frivolous and duplicative, and therefore barred under the prior Vexatious
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Litigant Order. The Court therefore affirms the Bankruptcy Court’s February 14, 2020
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Order. Compare Melcher, 2016 U.S. Dist. LEXIS 112502, at *6 (affirming Bankruptcy
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Court’s denial of leave to file an objection that was duplicative, lacked merit, and addressed
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irrelevant matters in violation of pre-filing requirements); In re Erde, 2019 Bankr. LEXIS
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3697, at *19 (9th Cir. B.A.P. Dec. 3, 2019) (“Mr. Erde . . . did not satisfy the conditions of
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the vexatious litigant order. The bankruptcy court correctly denied him permission to file
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the motion to vacate.”).
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Nor did the Bankruptcy Court abuse its discretion in its March 9, 2020 Order
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Granting the Compromise Motion and Approving the Stipulation between the Chapter 7
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Trustees. The Compromise Motion was filed pursuant to Bankruptcy Rule 9019, which
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provides that “[o]n motion by the trustee and after notice and a hearing, the court may
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approve a compromise or settlement.” Fed. R. Bankr. P. 9019(a). The “purpose of a
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compromise agreement is to allow the trustee and the creditors to avoid the expenses and
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burdens associated with litigating sharply contested and dubious claims.” In re A & C
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Props., 784 F.2d 1377, 1380-81 (9th Cir. 1986). The law “favors compromise and not
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litigation for its own sake.” Id. at 1381. “The bankruptcy court has great latitude in
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approving compromise agreements.” In re Esterlina Vineyards & Winery, LLC, 2018
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Bankr. LEXIS 760, at *10 (9th Cir. B.A.P. Mar. 13, 2018) (quoting In re Woodson, 839 F.2d
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610, 620 (9th Cir. 1998)). “To approve a compromise, the bankruptcy court must be
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satisfied that its terms are ‘fair, reasonable and equitable.’” In re Hooper, 2012 Bankr.
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LEXIS 680, at *15 (quoting In re A & C Props., 784 F.2d at 1382).
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The Court has reviewed the Compromise Motion, which sought an order from the
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Bankruptcy Court authorizing and approving a Stipulation between the Chapter 7 Trustee for
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the Estate of Peli Popovich Hunt and the Chapter 7 Trustee for the Estate of Robert W.
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Hunt, M.D., a Medical Corporation. See 2:11-bk-58228-ER, Dkt. 717. If approved, the
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Stipulation would result in the allowance of administrative expense claims and withdrawal
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and disallowance of general unsecured claims. The Compromise Motion was filed pursuant
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to Bankruptcy Rule 9019, and the parties recognized that “formal objections to the claims
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will involve a number of contested factual issues and may result in costly and protracted
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litigation to the detriment of both the Debtor’s estate and the Popovich Hunt estate.” Id. at
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6. The parties believed the Stipulation “eliminates the need for any litigation regarding or
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objections to the claims,” and therefore should be approved by the Court. Id. at 7. The
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Bankruptcy Court granted the Compromise Motion and determined that “the Stipulation is
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reasonable, adequate under the circumstances, and in the best interest of creditors. See
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