Louie v. California Judical Council et al
Filing
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ORDER signed by Magistrate Judge Edmund F. Brennan on 4/14/11 ORDERING On or before April 29, 2011, plaintiff and/or the bankruptcy trustee(s) shall substitute or join the bankruptcy trustee(s), or show the trustee's ratification of this action; If plaintiff and the bankruptcy trustee(s) fail to comply with the Rule 17 requirements on or before April 29, 2011, the undersigned will recommend that this action be dismissed with prejudice; The April 20, 2011 status (pretrial scheduling) confere nce is continued to May 25, 2011 at 10:00 a.m. in Courtroom No. 24. Because the parties filed a joint status report on February 22, 2011, Dckt. No. 11, no further status report need be filed; and Within five days of the date this order is filed, plaintiff shall serve a copy of this order on the bankruptcy trustee(s) and shall file a proof of such service. (Matson, R)
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IN THE UNITED STATES DISTRICT COURT
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FOR THE EASTERN DISTRICT OF CALIFORNIA
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GEORGE S. LOUIE,
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Plaintiff,
No. CIV S-10-2530 LKK EFB PS
vs.
CALIFORNIA JUDICIAL COUNCIL;
SACRAMENTO COUNTY SUPERIOR
COURT;
Defendants.
_________________________________/
ORDER
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This case, in which plaintiff is proceeding pro se, is before the undersigned pursuant to
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Eastern District of California Local Rule 302(c)(21). A status (pretrial scheduling) conference is
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currently scheduled for April 20, 2011. Dckt. Nos. 7, 10, 13. On March 10, 2011, plaintiff filed
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a “Notice of Filing Bankruptcy,” indicating that an involuntary Chapter 7 bankruptcy petition
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was filed against him.1 Dckt. No. 12. Therefore, on March 16, 2011, the undersigned ordered
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plaintiff to file a brief indicating whether this case should be stayed pursuant to the automatic
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bankruptcy stay, 11 U.S.C. § 362, and/or whether plaintiff has standing to bring this action in
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light of the pending bankruptcy. Dckt. No. 13. The undersigned also provided defendants
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On April 6, 2011, plaintiff also filed a second “Notice of Filing Bankruptcy,” indicating
that he filed a voluntary bankruptcy petition on April 1, 2011. Dckt. No. 15.
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and/or lien holders an opportunity to file such a brief and/or a response to plaintiff’s brief. Id.
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Plaintiff filed a response to the March 16 order, indicating that because of the pending
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bankruptcy action this case should be stayed and plaintiff lacks standing to bring this action.
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Dckt. No. 14. Defendants also filed a response to the March 16 order, arguing that this case
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should be dismissed based on plaintiff’s lack of standing. Dckt. No. 16.
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As all parties acknowledge, because of the pending bankruptcy actions, plaintiff does not
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have standing to proceed in the action. Upon a declaration of bankruptcy, all of the debtor’s
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legal or equitable interests in property become the property of the bankruptcy estate. Manlangit
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v. Nat’l City Mortg., 2010 WL 2044687, at *1 (E.D. Cal. May 20, 2010) (citing 11 U.S.C.
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§ 541(a)). This includes causes of action. See id.; see also Switchboard Co. v. Westinghouse
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Elec. Corp., 789 F.2d 705, 707 (9th Cir.1986); Rowland v. Novus Fin. Corp., 949 F. Supp. 1447,
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1453 (D. Haw. 1996). Therefore, “a bankruptcy petitioner loses standing for any causes of
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action and the estate becomes the only real party in interest unless the bankruptcy trustee
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abandons the claims” or the claims are exempt from the bankruptcy estate. Manlangit, 2010 WL
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2044687, at *1 (citing In re Lopez, 283 B.R. 22, 28-29 (9th Cir. 2002); In re Pace, 146 B.R. 562,
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565-66 (9th Cir. 1992)); Rowland, 949 F. Supp. at 1453.
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Here, plaintiff has not indicated that the bankruptcy trustee(s) has/have abandoned the
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claims against defendants or that this action is exempt from or should be excluded from the
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bankruptcy estate(s); in fact, plaintiff concedes that he lacks standing to bring this action.
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Therefore, plaintiff and/or the bankruptcy trustee(s) will be required to substitute or join the
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bankruptcy trustee(s), or show the trustee’s ratification of this action, pursuant to the
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requirements of Federal Rule of Civil Procedure 17(a)(3) (“The court may not dismiss an action
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for failure to prosecute in the name of the real party in interest until, after an objection, a
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reasonable time has been allowed for the real party in interest to ratify, join, or be substituted
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into the action. After ratification, joinder, or substitution, the action proceeds as if it had been
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originally commenced by the real party in interest.”). If plaintiff and the bankruptcy trustee(s)
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fail to do so, the undersigned will recommend that this action be dismissed with prejudice.
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Accordingly, IT IS HEREBY ORDERED that:
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1. On or before April 29, 2011, plaintiff and/or the bankruptcy trustee(s) shall substitute
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or join the bankruptcy trustee(s), or show the trustee’s ratification of this action, pursuant to the
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requirements of Federal Rule of Civil Procedure 17(a)(3).
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2. If plaintiff and the bankruptcy trustee(s) fail to comply with the Rule 17 requirements
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on or before April 29, 2011, the undersigned will recommend that this action be dismissed with
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prejudice.
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3. The April 20, 2011 status (pretrial scheduling) conference is continued to May 25,
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2011 at 10:00 a.m. in Courtroom No. 24. Because the parties filed a joint status report on
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February 22, 2011, Dckt. No. 11, no further status report need be filed.
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4. Within five days of the date this order is filed, plaintiff shall serve a copy of this order
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on the bankruptcy trustee(s) and shall file a proof of such service.
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DATED: April 14, 2011.
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