Boynton v. American Modern Insurance Company

Filing 87

ORDER by Judge Charles R. Breyer granting 80 Motion for Summary Judgment. (crblc2, COURT STAFF) (Filed on 8/30/2021)Any non-CM/ECF Participants have been served by First Class Mail to the addresses of record listed on the Notice of Electronic Filing (NEF)

Case 3:18-cv-00374-CRB Document 87 Filed 08/30/21 Page 1 of 3

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IN THE UNITED STATES DISTRICT COURT

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FOR THE NORTHERN DISTRICT OF CALIFORNIA

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PEGGY G. BOYNTON,
Plaintiff,

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United States District Court
Northern District of California

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Case No. 18-cv-00374-CRB
ORDER GRANTING MOTION FOR
SUMMARY JUDGMENT

v.
AMERICAN MODERN INSURANCE
COMPANY,
Defendant.

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In 2017, Plaintiff Peggy Boynton sued Defendant American Modern Insurance Co.
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(AMI) in state court. See Complaint (dkt. 1 Ex. A). AMI removed the case to this court.
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See Notice of Removal (dkt. 1). The Court dismissed Boynton’s complaint but granted

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leave to amend. See Order Granting Mot. to Dismiss (dkt. 17). Boynton filed an amended
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complaint in April 2018. See FAC (dkt. 18). The Court directed the parties to participate
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in alternative dispute resolution proceedings, see Minute Entry (dkt. 21), and later
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appointed counsel for Boynton for the limited purpose of representing Boynton in
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settlement discussions, see Order Appointing Counsel (dkt. 40). Those discussions failed,
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see Minute Entry (dkt. 48), and the Court terminated Boynton’s appointed representation,

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see Order Terminating Representation (dkt. 50). But the Court appointed counsel for
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Boynton again in November 2019 (again for the limited purpose of representing Boynton
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in settlement discussions). See Order Appointing Counsel (dkt. 57). Once more, the
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parties failed to settle, and the Court relieved Boynton’s pro bono counsel. See Order

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Reliving Counsel (dkt. 77).
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AMI now moves for summary judgment. See Mot. for Summary Judgment (dkt.
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Case 3:18-cv-00374-CRB Document 87 Filed 08/30/21 Page 2 of 3

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80). AMI has provided documents showing that Boynton filed for bankruptcy in the

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Eastern District of California in June 2020. See Voluntary Petition of Bankruptcy (dkt. 80-

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1 Ex. K). Boynton’s bankruptcy petition did not indicate that she had any “claims against

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third parties.” Id. at 18 (Schedule A/B: Property, Part 4, Request 33). Boynton’s amended

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bankruptcy petition similarly failed to indicate that she had any “claims against third

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parties.” See Amendment to Voluntary Petition of Bankruptcy (dkt. 80-1 Ex. L) at 8

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(Schedule A/B: Property, Part 4, Request 33). The bankruptcy trustee issued a final report

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on December 30, 2020, see Final Report (dkt. 80-1 Ex. M), and the bankruptcy court

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adopted that report on February 2, 2021, see Order Adopting Report (dkt. 80-1 Ex. N).
Under Rule 56 of the Federal Rules of Civil Procedure, summary judgment is

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United States District Court
Northern District of California

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proper if there are not genuine issues of material fact and the moving party is entitled to

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judgment as a matter of law. The Court grants AMI’s motion for summary judgment.

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Boynton’s filing of a bankruptcy petition created “an estate . . . comprised of . . . all

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legal or equitable interests of [Boynton] in property as of the commencement of the case.”

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11 U.S.C. § 541(a)(1). This “includes causes of action.” Sierra Switchboard Co. v.

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Westinghouse Elec. Corp., 789 F.2d 705, 707 (9th Cir. 1986). The instant lawsuit is thus

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part of the bankruptcy estate unless the bankruptcy trustee has abandoned it. 11 U.S.C.

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§ 554(d). And the trustee has not abandoned it. Generally, the trustee can abandon

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property only after notice and a hearing. See id. § 554(a)-(b). That rule does not apply to

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certain property “scheduled” under 11 U.S.C. § 521(a)(1) and “not otherwise administered

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at the time of the closing of a case,” at which point the property is “abandoned to the

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debtor.” Id. § 554(c).1 Here, there is no indication that the trustee has provided notice or

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held a hearing in order to abandon this lawsuit. And the lawsuit was not “scheduled”

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under § 521(a)(1) because Boynton omitted it from her bankruptcy petition. Therefore, the

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lawsuit remains part of the bankruptcy estate.
Under Rule 17(a)(1) of the Federal Rules of Civil Procedure, a lawsuit “must be

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Section 521(a)(1) requires the debtor to file a “schedule of assets and liabilities” and similar
indicia of the debtor’s financial affairs. See id. § 521(a)(1)(B)(i).
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