LANCE M. AFRICK, District Judge.
Before the Court is a joint motion
This appeal is the latest action in a series of proceedings involving Howell, his mother Elise LaMartina ("LaMartina"), and their dispute with a Chapter 7 Trustee and his attorneys over matters related to foreclosure proceedings and a mortgage note on a condominium that Howell and LaMartina previously occupied. The following are the facts and procedural history relevant to this appeal.
In 2015, the bankruptcy court ordered a turnover of the mortgage note to the Trustee based on a state court determination that Donald Grodsky ("Grodsky"), the Chapter 7 debtor in this case, was the owner of the note.
On June 13, 2018, the bankruptcy court dismissed Howell and LaMartina's complaint in the adversary proceeding and permanently enjoined them from commencing or continuing any claim or cause of action relating in any way to:
This Court affirmed the bankruptcy court's decision dismissing Howell and LaMartina's claims and issuing a permanent injunction, and it adopted the bankruptcy court's opinion as its own on May 31, 2019.
The instant appeal arises from the December 18, 2019 order by the bankruptcy court allowing attorneys' fees and costs for Gordon Arata, Seale & Ross, and Chaffe McCall, LLP ("Chaffe McCall").
After reviewing the application and the relevant record and finding that the professional services were duly rendered and that the services rendered and costs incurred were reasonable, the bankruptcy court authorized the Trustee to pay to Gordon Arata, Seale & Ross, and Chaffe McCall the attorneys' fees and costs set forth in the application.
Howell filed a notice of appeal of the bankruptcy court's order on December 30, 2019.
Gordon Arata and Seale & Ross move to dismiss Howell's appeal, arguing that dismissal is warranted based on Howell's failure to pay the required filing fee under Federal Rule of Bankruptcy Procedure 8003(a)(3)(C) and the frivolous and "baseless" nature of Howell's appeal pursuant to 28 U.S.C. § 1915(e)(2)(i)-(ii).
This Court's jurisdiction to review the bankruptcy court's order derives from 28 U.S.C. § 158(a)(1). "[C]onclusions of law are reviewed de novo, findings of fact are reviewed for clear error, and mixed questions of fact and law are reviewed de novo." In re Nat'l Gypsum Co., 208 F.3d 498, 504 (5th Cir. 2000). "[W]hen the bankruptcy court's weighing of the evidence is plausible in light of the record taken as a whole, a finding of clear error is precluded, even if [the reviewing court] would have weighed the evidence differently." In re Bradley, 501 F.3d 421, 434 (5th Cir. 2007). Under the clear error standard, the bankruptcy court's order will only be reversed if the district court has a "firm and definite conviction that a mistake has been made." Matter of Linn Energy, L.L.C., 936 F.3d 334, 340 (5th Cir. 2019).
A bankruptcy court's award of attorneys' fees is reviewed for abuse of discretion and its underlying fact findings for clear error. In re Hampton Vill., Inc., 122 F. App'x 717, 719 (5th Cir. 2004) (citing In re Anderson, 936 F.2d 199, 203 (5th Cir. 1991)). "An abuse of discretion arises where (1) the bankruptcy judge fails to apply the proper legal standard or follows improper procedures in determining the fee award, or (2) bases an award on findings of fact that are clearly erroneous." In re Evangeline Refining Co., 890 F.2d 1312, 1325 (5th Cir. 1989).
Rule 8003 of the Federal Rules of Bankruptcy Procedure sets forth certain procedural requirements for filing, with the bankruptcy clerk, a notice of appeal of a bankruptcy court's order, including payment of the prescribed fee. See Fed. R. Bankr. P. 8003(a)(3)(C). Pursuant to Rule 8003(a)(2), a district court may dismiss an appeal of a bankruptcy court's order because of an appellant's failure to comply with these procedural requirements.
Dismissal lies within the district court's discretion, though the Fifth Circuit has advised that "[d]ismissal is a harsh and drastic sanction that is not appropriate in all cases." In re CPDC Inc., 221 F.3d 693, 699 (5th Cir. 2000). When determining whether dismissal is an appropriate sanction for procedural infractions, factors relevant to the court's consideration include whether the infraction was harmless or prejudiced the appellees, whether the appellant has exhibited "obstinately dilatory conduct," and whether enforcement of the bankruptcy rules would "ensure the swift and efficient resolution of disputes pertinent to the distribution of the bankruptcy estate." See id. at 699-701.
Gordon Arata and Seale & Ross argue that the Court should dismiss Howell's appeal because he failed to pay the prescribed fee or obtain a fee waiver to proceed in forma pauperis.
Pursuant to 28 U.S.C. § 1930(f)(1), the district court and the bankruptcy court may waive the filing fee for certain individuals in a Chapter 7 bankruptcy case "[u]nder the procedures prescribed by the Judicial Conference of the United States." Section 1930(f)(3) specifically provides that "[t]his subsection does not restrict the district court or the bankruptcy court from waiving, in accordance with Judicial Conference policy, fees prescribed under this section for other debtors and creditors." 28 U.S.C. § 1930(f)(3). Although the Judicial Conference does not currently have a specific policy or procedure with respect to fee waivers for "other debtors and creditors," there is no policy that prohibits a district court or bankruptcy court from waiving the prescribed filing fee for creditors.
The record demonstrates that the bankruptcy court waived the prescribed filing fee for Howell's notice of appeal and that it permitted Howell to continue proceeding in forma pauperis in connection with his appeal.
Considering Howell's pauper status, however, the Court finds that dismissal of his appeal is warranted on grounds of frivolousness.
Pursuant to 28 U.S.C. § 1915, which governs proceedings in forma pauperis, the court "shall dismiss" an action or appeal that is frivolous. 28 U.S.C. § 1915(e)(2)(B)(i). An appeal by a party proceeding in forma pauperis may be dismissed as frivolous if it does not have an arguable basis in fact or law. Neitzke v. Williams, 490 U.S. 319, 325 (1989); Matter of Kite, 710 F. App'x 628, 631 (5th Cir. 2018); see In re Foster, 644 F. App'x 328, 331 (5th Cir. 2016) (dismissing bankruptcy appeal as frivolous because "it [was] apparent the appeal lacks merit").
In this case, the bankruptcy court reviewed the application, the record, and Howell's late opposition, found that the services were duly rendered and the services and expenses incurred were reasonable, and granted the application.
Howell claims that the bankruptcy court erroneously granted the application for allowance of attorneys' fees and costs, but he has not identified any issues demonstrating that the bankruptcy court's order constituted an abuse of discretion. See Anderson, 936 F.2d at 203. Howell does not allege that the bankruptcy court failed to apply the proper legal standard or follow proper procedures, and he has not shown that the award was based on clearly erroneous findings of fact. See Evangeline Refining Co., 890 F.2d at 1325. Instead, Howell asserts in a conclusory fashion that the fees and expenses set forth in the application are "excessive" and "unreasonable" because they relate to the administering of "an estate with one secured creditor and one estate asset."
As evident in the detailed application for allowance of attorneys' fees and costs, as well as the attached invoices, the expenses incurred covered a period of over six years for professional services rendered in connection with Howell and LaMartina's foreclosure and bankruptcy proceedings.
The Court finds no abuse of discretion by the bankruptcy court in its order on the allowance of attorneys' fees and costs. Because this Court reviews the bankruptcy court's findings of fact underlying its award for clear error, the Court defers to the bankruptcy court's factual findings unless, after reviewing all the evidence, the Court is "left with a firm and definite conviction that the bankruptcy court made a mistake." In re Cahill, 428 F.3d 536, 542 (5th Cir. 2005) (citing In re Bradley, 960 F.3d 503, 507 (5th Cir. 1992)) (internal quotation marks omitted). The Court does not have any such conviction here based on its review of the bankruptcy court's factual findings and the evidence presented. There has also been no demonstration that the bankruptcy court failed to apply the proper legal standard or that it followed improper procedures in reaching its decision. See Evangeline Refining Co., 890 F.2d at 1325.
Accordingly, Howell's appeal is frivolous because he has not demonstrated that his appeal has an arguable basis in fact or law. See Neitzke, 490 U.S. at 325. In his appeal of the bankruptcy court's order, Howell improperly raises issues that have already been adjudicated and that Howell has been permanently enjoined from litigating—specifically, allegations of misconduct by the Trustee and his attorneys in these proceedings and claims relating to litigation arising from the mortgage note.
Howell has not presented any argument to the Court that the claims he is raising again in the instant appeal are not barred by the prior orders of this Court and the bankruptcy court. Instead, Howell's appeal is another improper attempt to take "more than `one bite of the apple'" and continue this protracted bankruptcy proceeding.
For the foregoing reasons,