3 14 12 Nvb 05104 Keller Beesley Motion for Extension of Time to File Bankr.d.nev.-114021412266

7/29/2019 3 14 12 Nvb 05104 Keller Beesley Motion for Extension of Time to File Bankr.d.nev.-114021412266

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Case 10-05104-gwz Doc 48 Entered 03/14/12 23:53:57 Page 1 of 28

Zach Coughlin,Esq.Nevada Bar No: 9473121 River Roc !".Reno, N# $9%&1'ele: 77%(33$($11$

)a*: 949(++7(74&2""orne- or /eendan" Ro0er" eller

N'E/ !''E! BNR'C5 C6R'/!'RC' 6) NE#/

n Re: R6BER' EER Case No.: B 1&(%2+39(g;1%>12

8earing 'i?e: 2:3&

MOTION FOR EXTENSION OF TIME TO FILE AMENDED ANSWER AND COUNTERCLAIM TO AMENDED COMPLAINT AND ASSOCIATED MOTIONS TO DISMISS AND DISCOVERY REQUESTS

'his o"ion is 0ased on "he ollo;ing e?orandu? o oin"s and u"hori"ies as ;ell

as R +(1, Rule 7&1% )ed. R. Banr. . and Rule 1%@2 )ed. R. Civ. .

MEMORANDUM OF POINTS AND AUTHORITIES.

!''EEN' 6) N/!'E/ )C'!6n Aul- 2, 2&1&, /e0"or>/eendan" R6BER' EER @hereina"er eller or /eendan"

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iles "his o"ion or E*"ension o "i?e "o )ile ?ended ns;er and Coun"erlcai?s and ssocia"eo"ions "o /is?iss and /iscover- Reques"s. E*ce="ional circu?s"ances dic"a"e reques"ing "his so,and a con"inuance ?a- have alread- 0een gran"ed, ho;ever, "he undersigned ass "his Cour" "o =lease

allo; a" leas" a cou=le ?ore da-s "o ge" "hese ?a""ers address and can oer s"rong evidence insu==or" o ;h- an e*"ension or con"inuance is needed.DCadle asser"s "ha" i" is en"i"led "o su??ar- udg?en" on i"s o0ec"ion "o discharge, clai?ingAaco0o;i"< has no" =roducedF+7& 0an s"a"e?en"s, canceled checs, de=osi" sli=s or o"her ledgers or0oos "ha" ;ould allo; i" "o co?=rehend ;ha" ca?e in"o and le" "he de0"orGs hands in "he -earsi??edia"el- =receding his 0anru="c- =roceeding and "ha" his ailure "o ee= cer"ain 0usiness records

viola"es 11 .!.C. H 727@a@3. !u??ar- Audg?en" !"andard !u??ar- udg?en" should 0e gran"edunder )ed.R.Civ.. %+, ?ade a==lica0le "o "his =roceeding 0- Banru="c- Rule 7&%+, ;hen "here isno genuine issue o ?a"erial ac" and "he ?oving =ar"- is en"i"led "o udg?en" as a ?a""er o la;.Celo"e* Cor=. v. Ca"re"", 477 .!. 317, 322, 1&+ !.C". 2%4$, 91 .Ed.2d 2+% @19$+. 'he non(?oving

=ar"- ?a- o==ose a su??ar- udg?en" ?o"ion 0- ?aing a sho;ing "ha" "here is a genuine issue as"o a ?a"erial ac" in su==or" o a verdic" or "ha" =ar"-. nderson v. i0er"- o00-, nc., 477 .!. 242

249, 1&+ !.C". 2%&%, 2%1&I11, 91 .Ed.2d 2&2 @19$+. !ec"ion 727@a@3 nder 11 .!.C. H 727 o"he Code, an individual de0"or is en"i"led "o a discharge unless one o "he "en enu?era"ed e*ce="ions"o discharge s=eciied in H 727@a is es"a0lished. 'he discharge e*"ends "o all =re(=e"i"ion de0"s,e*ce=" "o "he e*"en" "o ;hich a =ar"icular de0" is held non(dischargea0le under H %23 o "he Code. 11.!.C. H 727@0. !ee arras v. 8ansen @n re arras, 1+% B.R. +3+, +3$ @N./.ll.1994. J1K60ec"ions "o discharge are s"ric"l- cons"rued agains" "he o0ec"ing =ar"- and li0erall- in avor o "hede0"or "o =ro?o"e "he 0anru="c- goal o =roviding a resh s"ar" or "he hones" de0"or. !ee Ban oenns-lvania v. dl?an @n re dl?an, %41 ).2d 999, 1&&3 @2d Cir.197+L Con"inen"al llinois Na"Gl

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Ban and 'rus" Co. o Chicago v. Bernard @n re Bernard, 99 B.R. %+3, %+9 @Banr.!./.N.5.19$9.

J2K 'he ?ovan" o0ec"ing "o discharge has "he 0urden o =roo 0- a =re=onderance o "he evidence. n

re Mannon, 173 B.R. 313 @Banr.!./.N.5.1994. J3K !ec"ion 727@a@3 o "he Code ocuses on a

de0"orGs du"- "o ?ain"ain recorded inor?a"ion ;hich 0ears on his inancial condi"ion and 0usiness

aairs. !ec"ion 727@a@3 s"a"es "ha" a de0"orGs discharge ;ill 0e denied i: "he de0"or has concealed,

des"ro-ed, ?u"ila"ed, alsiied, or ailed "o ee= or =reserve an- recorded inor?a"ion, including

0oos, docu?en"s, records, and =a=ers, ro? ;hich "he de0"orGs inancial condi"ion or 0usiness

"ransac"ions ?igh" 0e ascer"ained, unless such ac" or ailure "o ac" ;as us"iied under all o "he

circu?s"ances o "he case. 11 .!.C. H 727@a@3. 'he sec"ionGs =ur=ose is "o =rovide credi"ors and "he

cour" co?=le"e and accura"e inor?a"ion concerning "he s"a"us o "he de0"orGs aairs and "o "es" "he

co?=le"eness o "he disclosure requisi"e "o a discharge. n re Mannon, 173 B.R. a" 321. " also

ensures "ha" credi"ors are su==lied ;i"h de=enda0le inor?a"ion on ;hich "he- can rel- in "racing a

de0"orGs inancial his"or-. d. 'he de0"or has an air?a"ive du"- "o =rovide such docu?en"s, and "he

"rus"ee and credi"ors are no" required "o erre" ou" "he required records. n re Craig, 2%2 B.R. $22

@Banr.!./.)la.2&&&. s "he 'hird Circui" held in eridian Ban: 'he Banru="c- Code does no"

s=eciicall- require a de0"or seeing a discharge "o ?ain"ain a 0an accoun", nor does i" require an

i?=ecca0le s-s"e? o 0ooee=ing. Never"heless, "he records ?us" suicien"l- iden"i- "he

"ransac"ions JsoK "ha" in"elligen" inquir- can 0e ?ade o "he?. 'he "es" is ;he"her "here JisK availa0le

;ri""en evidence F+71 ?ade and =reserved ro? ;hich "he =resen" inancial condi"ion o "he 0anru="

and his 0usiness "ransac"ions or a reasona0le =eriod in "he =as" ?a- 0e ascer"ained. 'hus, in order "o

invoe "he =ro"ec"ion o "he 0anru="c- cour", "he de0"or ?us" ?ain"ain and =reserve adequa"e

records. "he de0"or ails "o do so, "here ?us" 0e so?e us"iica"ion. eridian Ban v. l"en, 9%$

).2d 122+, 123& @3d Cir.1992. 'he issue "o 0e resolved ;hen an o0ec"ion "o discharge ounded on H

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727@a@3 is raised is ;he"her a de0"orGs records are adequa"e "o e*=lain his inances and, i no",;he"her "his ailure is us"iied. n re Rei"


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de0"orGs disclosures. 8ere, Cadle sough" docu?en"a"ion on Aaco0o;i"


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si?ilar circu?s"ances. 'he inquir- should include "he educa"ion, e*=erience and so=his"ica"ion o "he

de0"orL "he volu?e o "he de0"orGs 0usinessL "he co?=le*i"- o "he de0"orGs 0usinessL "he a?oun" o

credi" e*"ended "o de0"or in his 0usinessL and an- o"her circu?s"ances "ha" should 0e considered in

"he in"eres" o us"ice. eridian Ban, 9%$ ).2d a" 1231. )or e*a?=le, a de0"orGs circu?s"ances as a

casual la0orer did no" require "ha" he ?ain"ain records sugges"ed 0- credi"or, and "hus credi"or ailed

"o =rove allega"ions "ha" de0"or no;ingl- and raudulen"l- ;i"hheld recorded inor?a"ion rela"ing "o

his =ro=er"- or inancial aairs. n re 8augen, 9 B.R. 4 @Banr.!./.)la.19$&. )ur"her, o0viousl- an

unso=his"ica"ed ;age earner dealing =ri?aril- in cash should no" 0e denied a discharge 0ecause he

ailed "o ee= 0oos o accoun". higher s"andard o care is required, ho;ever, or a ?erchan"

ac"ivel- engaged in credi" "ransac"ions. Mo v. Russell Co., 49% ).2d 199, 2&1I&2 @%"h Cir.1974.

Aaco0o;i"< is nei"her a casual la0orer nor an unso=his"ica"ed ;age earner. 8is "es"i?on-

de?ons"ra"es "ha" he is an e*=erienced sales?an ;ho had 0een in 0usiness or ?an- -ears =receding

"his 0anru="c-. 8e is a licensed insurance 0roer ;ho regularl- deal" in con"rac"s and =a=er

docu?en"s, is a

signa"or- on a congrega"ionGs checing accoun", and no;s "he value o ?ain"aining adequa"e

records. 8e en"er"ained clien"s and reads )or0es ?aga


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us"iied in ailing "o ?ain"ain "he 0are ?ini?u? 0oos and records ro? ;hich his inancialcondi"ion or 0usiness "ransac"ions ?igh" 0e ascer"ained,F+73 and ;ould si?ilarl- 0e denied a 0anru="c- discharge. #. C6NC!6N )or "he oregoing reasons, CadleGs ?o"ion or su??ar-udg?en" is gran"ed. 'his Cour" shall issue a se=ara"e 6rder in conor?i"- ;i"h "his e?orandu?and /ecision.D Br"c-.!./.N.5.,2&&3. n re Aaco0o;i"< 29+ B.R. +++, %& Collier Banr.Cas.2d1&%%

CA! BNR'C5 H 139 age 2 $ C.A.!. Banru="c- H 13 n adversar- =roceeding is

an- one o several =roceedings enu?era"ed 0- "he Banru="c- Code. ll dis=u"es in 0anru="c- are

ei"her adversar- =roceedings or con"es"ed ?a""ers.J1K n adversar- =roceeding is a =roceedingJ2K "o:

@1 recover ?one- or =ro=er"-, e*ce=" a =roceeding "o co?=el "he de0"or "o deliver =ro=er"- "o "he

"rus"ee, or a =roceeding under Banru="c- Code =rovisions and )ederal Rules o Banru="c-rocedure rela"ing "o a0andon?en" o es"a"e =ro=er"- "ha" is 0urdenso?e "o "he es"a"e or "ha" is oinconsequen"ial value and 0enei" "o "he es"a"e,J3K dis=osal o cer"ain =ro=er"- 0- "he Cha="er 7 "rus"ee,J4K e*a?ina"ion o "he de0"orGs "ransac"ions ;i"h "he de0"orGs a""orne-,J%K or an accoun"ing 0-a =rior cus"odianJ+K o es"a"e =ro=er"-LJ7K @2 de"er?ine "he validi"-, =riori"-, or e*"en" o a lien oro"her in"eres" in =ro=er"- o"her "han a =roceeding under "he )ederal Rule o Banru="c- rocedureJ$Krela"ing "o avoidance 0- "he de0"or o "ransers o e*e?=" =ro=er"-LJ9K @3 o0"ain a==roval under "heBanru="c- CodeJ1&K or "he sale o 0o"h "he in"eres" o "he es"a"e and o a co(o;ner in =ro=er"-LJ 11K

@4 o0ec" "o or revoe a dischargeLJ12K @% revoe an order o conir?a"ion o a Cha="er 11, 12, or 13

=lanLJ13K @+ de"er?ine "he dischargea0ili"- o a de0"LJ14K @7 o0"ain an inunc"ion or o"her equi"a0lerelie, e*ce=" ;hen a Cha="er 9, 11, 12, or 13 =lan =rovides or "he relieLJ 1%K @$ su0ordina"e an-allo;ed clai? or in"eres", e*ce=" ;hen su0ordina"ion is =rovided in a Cha="er 9, 11, 12, or 13 =lanLJ1+K @9 o0"ain a declara"or- udg?en" ;i"h res=ec" "o an- o "he oregoingLJ17K and @1& de"er?ine a

clai? or cause o ac"ion re?oved under 2$ .!.C.. H 14%2.J1$K ll o"her =roceedings are ?erel-

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con"es"ed ?a""ers.J19K dversar- =roceedings are co??enced 0- co?=lain"J2&K and are governed 0-

ar" #J21 K o "he )ederal Rules o Banru="c- rocedureJ22K ;hich ?ae a==lica0le "o such

=roceedings nu?erous =rovisions o "he )ederal Rules o Civil rocedure. henever a )ederal Rule

$ C.A.!. Banru="c- H 139 o Civil rocedure a==lica0le "o adversar- =roceedings ?aes reerence

"o ano"her )ederal Rule o Civil rocedure, "he reerence ?us" 0e read as a reerence "o "he )ederal

Rule o Civil rocedure as ?odiied in ar" # o "he )ederal Rules o Banru="c- rocedure.J23K

'he )ederal Rules o Civil rocedure ;hich are incor=ora"ed 0- reerence and ?ade a==lica0le 0-

"he )ederal Rules o Banru="c- rocedure are "he Rules in eec" on "he eec"ive da"e o "he )ederal

Rules o Banru="c- rocedure and as "herea"er a?ended, unless o"her;ise =rovided 0- such

a?end?en" or 0- "he )ederal Rules o Banru="c- rocedure.J24K n a =roceeding ;hich should 0e

"rea"ed as an adversar- =roceeding under "he rules, devia"ion ro? adversar- =roceeding =rocedure

?a- 0e =er?i""ed ;here "here is no o0ec"ion.J2%K Even ;here "here is an o0ec"ion, ailure "o ollo;

adversar- =roceeding =rocedure ;ill no" necessaril- render a =roceeding void,J2+K al"hough so?e

au"hori"ies have s"a"ed "ha" "he cour" is de=rived o urisdic"ion.J27K roceedings agains" sure"ies.

henever "he Banru="c- Code or "he )ederal Rules o Banru="c- rocedure require or =er?i" "he

giving o securi"- 0- a =ar"-, and securi"- is given in "he or? o a 0ond or s"i=ula"ion or o"her

under"aing ;i"h one or ?ore sure"ies, each sure"- su0?i"s "o "he urisdic"ion o "he cour", and

lia0ili"- ?a- 0e de"er?ined in an adversar- =roceeding.J2$K C'#E !EEN'

!"a"u"es: )ed. R. Banr. . 7&&1@4, as a?ended =ril 2$, 2&1&, and eec"ive /ece?0er 1, 2&1&,

=rovides "ha" a =roceeding "o o0ec" "o or revoe a discharge, o"her "han an o0ec"ion "o discharge

under 11 .!.C.. HH 727@a@$, @a@9, 132$@, is an adversar- =roceeding. Cases: Banru="c-

cour"Gs legal error in conir?ing de0"orGs Cha="er 13 =lan a0sen" a inding o undue hardshi= in an

adversar- =roceeding did no" render i"s udg?en" voidL cour"Gs ailure "o ind undue hardshi= in

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accordance ;i"h "he sec"ion o "he Banru="c- Code governing "he dischargea0ili"- o s"uden" loan

de0" ;as no" on =ar ;i"h "he urisdic"ional and no"ice ailings "ha" deine void udg?en"s "ha" quali-

or relie under "he rule governing relie ro? udg?en" on "he 0asis "ha" "he udg?en" is void, des=i"e

"he Dsel(e*ecu"ingD na"ure o "ha" sec"ion o "he Code, and, 0ecause s"uden" loan credi"or had no"ice

o "he error and ailed "o o0ec" or "i?el- a==eal, "he conir?a"ion order re?ained enorcea0le and

0inding on i"L a0roga"ing n re ers?ann, %&% ).3d 1&33, and hel"on v. Educa"ional Credi"

anage?en" Cor=., 432 ).3d 1%&. 11 .!.C.. HH %23@a@$, 132$@a@2L )ed.Rules

Banr.roc.Rules 9&24, 11 .!.C..L )ed.Rules Civ.roc.Rule +&@0@4, 2$ .!.C.. ni"ed !"uden"

id )unds, nc. v. Es=inosa, 13& !. C". 13+7 @2&1&. Clai?s ;hich Cha="er 13 de0"ors had asser"ed

under "he ederal 'ru"h in ending c" @' and "he Real Es"a"e !e""le?en" rocedures c"

@RE! agains" lender =roviding cons"ruc"ion loan or de0"orsG ho?e, and ;hich lender sough" "o

;i"hdra; "o dis"ric" cour", ;ould 0e severed ro? clai?s "ha" de0"ors asser"ed agains" en"i"ies

involved in se=ara"e =er?anen" inancing loan, des=i"e de0"orsG con"en"ion "ha" severance ;ould

unairl- =reudice "he? due "o "he added diicul"- and e*=ense involved in =rosecu"ing ";o se=ara"e

=roceedings, ;here "here ;as no"hing in co?=lain" "o indica"e an- connec"ion 0e";een "he

cons"ruc"ion loan and =er?anen" inancing deendan"s, and loans in ques"ion involved dieren"

inancial ins"i"u"ions, dieren" con"rac"s and dieren" "er?s. !nodgrass v. Ne; Cen"ur- or"g.

Cor=., 3%$ B.R. +7% @!./. . #a. 2&&+. JEN/ 6) !EEN'K J)N1K .!.Pa""er o

?erican Reserve Cor=., $4& ).2d 4$7, 1& )ed. R. !erv. 3d $+$ @7"h Cir. 19$$. s "o con"es"ed

?a""ers, generall-, see H 14&. J)N2K roceeding deined 0anru="c- =roceeding is a =ar"icular

dis=u"e or ?a""er arising ;i"hin a =ending case, as o==osed "o "he case as a ;hole. .!.Pn re Caldor

Cor=., 3&3 ).3d 1+1, %3 )ed. R. !erv. 3d 43$ @2d Cir. 2&&2. J)N3K 11 .!.C.. H %%4@0. J)N4K 11

.!.C.. H 72%. J)N%K )ed. R. Banr. . 2&17. J)N+K )ed. R. Banr. . +&&2. J)N7K )ed. R. Banr.

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. 7&&1@1. J)N$K )ed. R. Banr. . 4&&3@d. J)N9K )ed. R. Banr. . 7&&1@2. J)N1&K 11 .!.C.. H

3+3@h. J)N11K )ed. R. Banr. . 7&&1@3. J)N12K )ed. R. Banr. . 7&&1@4. J)N13K )ed. R. Banr.

. 7&&1@%. J)N14K )ed. R. Banr. . 7&&1@+. lan =rovision discharging =os"=e"i"ion in"eres" .!.P

n re Bans, 299 ).3d 29+, 1+9 Ed. a; Re=. 22 @4"h Cir. 2&&2. J)N1%K )ed. R. Banr. . 7&&1@7.

J)N1+K )ed. R. Banr. . 7&&1@$. J)N17K )ed. R. Banr. . 7&&1@9. J)N1$K )ed. R. Banr. .

7&&1@1&. J)N19K .!.Pa""er o illia?s, 1% B.R. +%% @E./. o. 19$1, aGd, +9+ ).2d 999 @$"h

Cir. 19$2. J)N2&K )ed. R. Banr. . 7&&3. J)N21K )ed. R. Banr. . 7&&1 e" seq. J)N22K )ed. R.

Banr. . 7&&1. J)N23K )ed. R. Banr. . 7&&2. J)N24K )ed. R. Banr. . 9&32. J)N2%K .!.Pn re

'a?=a Chain Co., nc., %3 B.R. 772 @Banr. !./. N.5. 19$%. J)N2+K .!.P a""er o /.8.

6ver?-er Co., nc. @6hio, 4& B.R. 99& @!./. N.5. 19$4. J)N27K .!.P Connell- v. arine

idland Ban, N.., +1 B.R. 74$ @./. N.5. 19$+. J)N2$K )ed. R. Banr. . 9&2%. ll dis=u"es in

0anru="c- are ei"her adversar- =roceedings or con"es"ed ?a""ers.J1K 0anru="c- D=roceedingD is a

=ar"icular dis=u"e or ?a""er arising ;i"hin a =ending case, as o==osed "o "he case as a ;hole.J2K n

adversar- =roceeding is a =roceeding "o: @1 recover ?one- or =ro=er"-, e*ce=" a =roceeding "o

co?=el "he de0"or "o deliver =ro=er"- "o "he "rus"ee, or a =roceeding under Banru="c- Code

=rovisions and )ederal Rules o Banru="c- rocedure rela"ing "o a0andon?en" o es"a"e =ro=er"-

"ha" is 0urdenso?e "o "he es"a"e or "ha" is o inconsequen"ial value and 0enei" "o "he es"a"e,J3K

dis=osal o cer"ain =ro=er"- 0- "he Cha="er 7 "rus"ee,J4K e*a?ina"ion o "he de0"orGs "ransac"ions ;i"h

"he de0"orGs a""orne-,J%K or an accoun"ing 0- a =rior cus"odianJ+K o es"a"e =ro=er"-LJ7K @2 de"er?ine

"he validi"-, =riori"-, or e*"en" o a lien or o"her in"eres" in =ro=er"- o"her "han a =roceeding under "he

)ederal Rule o Banru="c- rocedureJ$K rela"ing "o avoidance 0- "he de0"or o "ransers o e*e?="

=ro=er"-LJ9K @3 o0"ain a==roval under "he Banru="c- CodeJ1&K or "he sale o 0o"h "he in"eres" o "he

es"a"e and o a co(o;ner in =ro=er"-LJ11K @4 o0ec" "o or revoe a dischargeLJ12K @% revoe an order

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o conir?a"ion o a Cha="er 11, 12, or 13 =lanLJ13K @+ de"er?ine "he dischargea0ili"- o a de0"LJ14K@7 o0"ain an inunc"ion or o"her equi"a0le relie, e*ce=" ;hen a Cha="er 9, 11, 12, or 13 =lan =rovides

or "he relieLJ1%K @$ su0ordina"e an- allo;ed clai? or in"eres", e*ce=" ;hen su0ordina"ion is=rovided in a Cha="er 9, 11, 12, or 13 =lanLJ1+K @9 o0"ain a declara"or- udg?en" ;i"h res=ec" "o an-o "he oregoingLJ17K and @1& de"er?ine a clai? or cause o ac"ion re?oved under 2$ .!.C.. H14%2.J1$K dversar- =roceedings are co??enced 0- co?=lain"J19K and are governed 0- ar"#J2& K o "he )ederal Rules o Banru="c- rocedureJ21K ;hich ?ae a==lica0le "o such=roceedings nu?erous =rovisions o "he )ederal Rules o Civil rocedure.J22K henever a )ederalRule o Civil rocedure a==lica0le "o adversar- =roceedings ?aes reerence "o ano"her )ederal Rule

o Civil rocedure, "he reerence ?us" 0e read as a reerence "o "he )ederal Rule o Civil rocedure as

?odiied in ar" # o "he )ederal Rules o Banru="c- rocedure.J23K % )ed. roc., . Ed. H 9:44'he )ederal Rules o Civil rocedure ;hich are incor=ora"ed 0- reerence and ?ade a==lica0le 0-"he )ederal Rules o Banru="c- rocedure are "he )ederal Rules o Civil rocedure in eec" on "heeec"ive da"e o "he )ederal Rules o Banru="c- rocedure and as "herea"er a?ended, unlesso"her;ise =rovided 0- such a?end?en" or 0- "he )ederalRules o Banru="c- rocedure.J24K Cau"ion: Cha="er 12, "he )a?il- )ar?er Banru="c- c" o19$+, "echnicall- e*=ired Aanuar- 1, 2&&4. " "he "i?e o =u0lica"ion, "he =rovisions o Cha="er 12had no" 0een e*"ended, al"hough "his cha="er has 0een e*"ended 0- Congress 1& "i?es since 1993.ddi"ionall-, eor"s are under;a- "o ?ae Cha="er 12 a =er?anen" =ar" o "he )ederal Banru="c-Code. =er?anen" Cha="er 12 has 0een =ar" o o?ni0us 0anru="c- legisla"ion in"roduced 0eginning

;i"h "he 1&%"h Congress @1997(9$ and con"inuing "o "he 1&$"h Congress @2&&3(2&&4.C'#E !EEN' !"a"u"es: )ed. R. Banr. . 7&&1@4, as a?ended =ril 2$, 2&1&,and eec"ive /ece?0er 1, 2&1&, =rovides "ha" a =roceeding "o o0ec" "o or revoe a discharge, o"her

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"han an o0ec"ion "o discharge under 11 .!.C.. HH 727@a@$, @a@9, or 132$@ is an adversar-=roceeding. Cases: Banru="c- rules require a =ar"- seeing "o de"er?ine "he dischargea0ili"- o as"uden" loan de0" "o co??ence an adversar- =roceeding 0- serving a su??ons and co?=lain" onaec"ed credi"ors. 11 .!.C.. HH %23@a@$, 132$@a@2L )ed.Rules Banr.roc.Rules 7&&3, 7&&4,7&&$, 11 .!.C.. ni"ed !"uden" id )unds, nc. v. Es=inosa, 13& !. C". 13+7 @2&1&. JEN/ 6)!EEN'K J)N1K !even"h Circui" a""er o ?erican Reserve Cor=., $4& ).2d 4$7, 1& )ed. R.

!erv. 3d $+$ @7"h Cir. 19$$ s "o con"es"ed ?a""ers, generall-, see H 9:4%. J)N2K !econd Circui" nre Caldor Cor=., 3&3 ).3d 1+1, %3 )ed. R. !erv. 3d 43$ @2d Cir. 2&&2 J)N3K 11 .!.C.. H %%[email protected])N4K 11 .!.C.. H 72%. J)N%K )ed. R. Banr. . 2&17. J)N+K )ed. R. Banr. . +&&2. J)N7K )ed.

R. Banr. . 7&&1@1. J)N$K )ed. R. Banr. . 4&&3@d. J)N9K )ed. R. Banr. . 7&&1@2. J)N1&K 11.!.C.. H 3+3@h. J)N11K )ed. R. Banr. . 7&&1@3. J)N12K )ed. R. Banr. . 7&&1@4. J)N13K)ed. R. Banr. . 7&&1@%. J)N14K )ed. R. Banr. . 7&&1@+. Cha="er 13 =lan =rovision ?anda"ing"ha" =os"=e"i"ion in"eres" ;ould no" accrue on de0"orGs s"uden"(loan de0"s served "o discharge =os"=e"i"ion in"eres" "ha" credi"or ;as en"i"led "o receive and, "hereore, had "o 0e su0ec" o adversar-

=roceeding 0rough" 0- de0"or. n re Bans, 299 ).3d 29+, 1+9 Ed. a; Re=. 22 @4"h Cir. 2&&2.J)N1%K )ed. R. Banr. . 7&&1@7. J)N1+K )ed. R. Banr. . 7&&1@$. J)N17K )ed. R. Banr. .7&&1@9. J)N1$K )ed. R. Banr. . 7&&1@1&. J)N19K )ed. R. Banr. . 7&&3. J)N2&K )ed. R. Banr.. 7&&1 e" seq. J)N21K )ed. R. Banr. . 7&&1. J)N22K !=eciicall-, )ed. R. Banr. . 7&&3 "o 7&$7?ae a==lica0le, su0ec" "o sligh" qualiica"ions in cer"ain ins"ances, "he =rovisions o )ed. R. Civ. .3, 4@a, @0, @c@1, @d@1, @e "o @, @l, and @?, %, 7 "o 1&, 12@0 "o @h, 13 "o 21, 22@1, 23 "o 37, 4&"o 42 , %2, %4@a "o @c, %%, +2, +4, +%, +7 "o 71. J)N23K )ed. R. Banr. . 7&&2. J)N24K )ed. R. Banr. . 9&32.

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Banru="c- Rule 9&11 !anc"ions in Cha="er 11 Banru="c- roceedings, % ..R. )ed. 2d 31 ll

dis=u"es in 0anru="c- are ei"her adversar- =roceedings or con"es"ed ?a""ers.J1K n adversar-

=roceeding is a =roceeding "o:J2K @1 recover ?one- or =ro=er"-, e*ce=" a =roceeding "o co?=el "he

de0"or "o deliver =ro=er"- "o "he "rus"ee, or a =roceeding under 11 .!.C.. H %%4@0 or 11 .!.C.. H

72% or )ed. R. Banr. . 2&17 or )ed. R. Banr. . +&&2L @2 de"er?ine "he validi"-, =riori"-, or e*"en"

o a lien or o"her in"eres" in =ro=er"-, o"her "han a =roceeding under )ed. R. Banr. . 4&&3@dL @3

o0"ain a==roval =ursuan" "o 11 .!.C.. H 3+3@h or "he sale o 0o"h "he in"eres" o "he es"a"e and o

a co(o;ner in =ro=er"-L @4 o0ec" "o or revoe a dischargeL 9 ?. Aur. 2d Banru="c- H 22 @% revoe

an order o conir?a"ion o a Cha="er 11, 12, or 13 =lanL @+ de"er?ine "he dischargea0ili"- o a de0"L

@7 o0"ain an inunc"ion or o"her equi"a0le relie e*ce=" ;hen a Cha="er 9, 11, 12, or 13 =lan =rovides

or "he relieL @$ su0ordina"e an- allo;ed clai? or in"eres", e*ce=" ;hen su0ordina"ion is =rovided in

a Cha="er 9, 11, 12, or 13 =lanL @9 o0"ain a declara"or- udg?en" rela"ing "o an- o "he oregoingL or

@1& de"er?ine a clai? or cause o ac"ion re?oved =ursuan" "o 2$ .!.C.. H 14%2. dversar-

=roceedings are governed 0- "he Rules con"ained in ar" # o "he Banru="c- Rules.J3K J)N1K

a""er o ?erican Reserve Cor=., $4& ).2d 4$7, 1& )ed. R. !erv. 3d $+$ @7"h Cir. 19$$. s "o

con"es"ed ?a""ers, see H 23. J)N2K )ed. R. Banr. . 7&&1. J)N3K )ed. R. Banr. . 7&&1. dversar-

=roceedingsJ1K are governed 0- "he Rules o ar" # o "he Banru="c- Rules.J 2K 'he ar" # Rules

are 0ased on "he =re?ise "ha" "o "he e*"en" =ossi0le, =rac"ice 0eore "he 0anru="c- cour"s and "he

ni"ed !"a"es /is"ric" Cour"s should 0e "he sa?e, and "he ar" # Rules ei"her incor=ora"e or are

ada="a"ions o ?os" o "he )ederal Rules o Civil rocedure.J3K 'he con"en" and nu?0ering o "he

ar" # Rules correla"e "o "he con"en" and nu?0ering o "he )ederal Rules o Civil rocedure and

?os", 0u" no" all, o "he )ederal Rules o Civil rocedure have a co?=ara0le ar" # Banru="c-

Rule.J4K henever a )ederal Rule o Civil rocedure a==lica0le "o adversar- =roceedings ?aes

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reerence "o ano"her )ederal Rule o Civil rocedure, "he reerence ?us" 0e read as a reerence "o "he)ederal Rule o Civil rocedure as ?odiied in ar" # o "he Banru="c- Rules.J%K 'hus, "he cross(reerences "o o"her )ederal Rules o Civil rocedure in )ed. R. Civ. . %, 12 "o 14, 2%, 27, 3&, 41, %2,;hich are ?ade a==lica0le "o adversar- =roceedings 0- ar" # Rules ;hich ?odi- "heincor=ora"ed )ederal Rule o Civil rocedure, are "o "he )ederal Rule o Civil rocedure as ?odiied0- ar" #.J+K)ed. R. Banr. . 7&%$, added, eec"ive /ece?0er 1, 2&&9, =rovides "ha" )ed. R. Civ.. %$ a==lies in adversar- =roceedings. n "hese =roceedings, "he reerence in )ed. R. Civ. . %$ "o "he

civil doce" ?us" 0e read as a reerence "o "he doce" ?ain"ained 0- "he cler under )ed. R. Banr. .

%&&3@a. JEN/ 6) !EEN'K J)N1K dversar- =roceedings are deined in )ed. R. Banr. .

7&&1, discussed in H 22. J)N2K )ed. R. Banr. . 7&&1. J)N3K dvisor- Co??i""ee No"e "o )ed. R.

Banr. . 7&&1. J)N4K dvisor- Co??i""ee No"e "o )ed. R. Banr. . 7&&1. J)N%K )ed. R. Banr. .

7&&2. J)N+K dvisor- Co??i""ee No"e "o )ed. R. Banr. . 7&&2. R 7&1+. RE'R

R6CE/RE!. @a c"ions e*e?=" ro? scheduling order. E*ce=" as "he Cour" orders, "he ollo;ing

ca"egories o cases are e*e?=" ro? "he require?en"s o )ed. R. Civ. . 1+@0 as ado="ed 0- )ed. R.

Banr. . 7&1+: @1 Con"es"ed ?a""ers under )ed. R. Banr. . 9&14L and @2 6"her ac"ions or

ca"egories o ac"ions as "he Cour" orders. @0 'i?e and issuance or scheduling order. @1 'he =lain"i

?us" serve "he s"andard discover- =lan or?, ;hich ?a- 0e o0"ained ro? "he Cler, a" "he "i?e a

su??ons is issued. 'he =ar"ies ?us" use "he s"andard or?. @2 i"hin "hir"- @3& da-s a"er "he irs"

deendan" has ans;ered or o"her;ise a==eared, "he =ar"ies ?us" ?ee" as required 0- )ed. R. Banr.

7&2+ and R 7&2+. No la"er "han our"een @14 da-s a"er "he ?ee"ing, "he =ar"ies ?us" co?=le"e and

su0?i" "he inor?a"ion required 0- "he discover- =lan or reques" or ;aiver, and, i required 0- a

udge, a or? order. @3 "he =ar"ies agree "o "he s"andard deadlines or ail "o su0?i" "he discover-

=lan, "he s"andard deadlines ;ill govern. @4 "he =ar"ies have agreed "o dieren" deadlines, canno"

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agree on deadlines, or ;ish "o see a ;aiver o "he require?en" or a discover- =lan, "he- ?us" sa- so

on "he ron" =age o "he discover- =lan. @% nless "he- are e*cused, "he =ar"ies ?us" a==ear a" an-

scheduling conerence. @+ "er "he irs" scheduling conerence, "he Cour" ;ill a==rove, disa==rove,

or ?odi- "he discover- =lan, en"er o"her orders as a==ro=ria"e, and issue an order regarding =re"rial

and "rial. 'he Cour" ?a- order a s"a"us hearing or a conerence o all "he =ar"ies a" an- "i?e. @c 'i?e

li?i"s or iling cer"ain ?o"ions. nless "he Cour" orders o"her;ise, "he ollo;ing "i?e =eriods govern

iling cer"ain ?o"ions: @1 ll ?o"ions "o a?end "he =leadings under )ed. R. Banr. . 7&1%@a or or

"he oinder o =ar"ies ?us" 0e iled in "i?e "o 0e heard no la"er "han "he close o discover-. "he

a?end?en" or oinder is allo;ed, unless "he Cour" orders o"her;ise, discover- ;ill 0e e*"ended or

or"-(ive @4% da-s or "he li?i"ed =ur=oses o conduc"ing discover- on "he a?end?en"s or oindersL

@2 nless o"her;ise ordered, all =o"en"iall- dis=osi"ive ?o"ions on an- issues ?us" 0e iled 0- "he

close o discover-L and, @3 o"ions in li?ine ?us" 0e iled a" "he "i?e o "he =re"rial conerence, and

an- res=onses ?us" 0e iled no less "han seven @7 da-s 0eore "he s"ar" o "rial. No re=l- ;ill 0e

=er?i""ed unless "he Cour" reques"s one. @d re"rial order and "rial se""ing. @1 'he 6rder Regarding

re"rial and 'rial ?a- se" "he da"e or iling a oin" or se=ara"e "rial s"a"e?en"@s. 'he Cour" ?a-,

ho;ever, order a oin" =re"rial order a" an- "i?e. nless o"her;ise ordered, "he =ar"ies ?us" use "he

=rescri0ed =re"rial order and s"andard "rial s"a"e?en", 0o"h o ;hich ?a- 0e o0"ained ro? "he Cler

or "he Cour"Qs ;e0si"e. @2 'he Cour" ?a- se" a "rial da"e in "he order regarding =re"rial and "rial or 0-

se=ara"e ;ri""en or oral order. Con"inuances are disavored. @e !e""le?en" conerence and al"erna"ive

?e"hods o dis=u"e resolu"ion. 'he Cour" ?a- se" an- adversar- =roceeding or se""le?en"

conerence, su??ar- ur- "rial, or o"her al"erna"ive ?e"hod o dis=u"e resolu"ion.

R +(1. REE!'! )6R C6N'NNCE, ES'EN!6N 6) 'E 6R 6R/ER !86R'ENNM

'E. @a Ever- ?o"ion reques"ing a con"inuance, e*"ension o "i?e, or order shor"ening "i?e shall

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0e )iled 0- "he Cler and =rocessed as an e*=edi"ed ?a""er. E* =ar"e ?o"ions and s"i=ula"ions shall

0e governed 0- R +(2. @0 Ever- ?o"ion or s"i=ula"ion "o e*"end "i?e shall inor? "he Cour" o an-

=revious e*"ensions gran"ed and s"a"e "he reasons or "he e*"ension reques"ed. reques" ?ade a"er

"he e*=ira"ion o "he s=eciied =eriod shall no" 0e gran"ed unless "he ?oving =ar"-, a""orne-, or o"her

=erson de?ons"ra"es "ha" "he ailure "o ac" ;as "he resul" o e*cusa0le neglec". ??edia"el- 0elo; "he

"i"le o such ?o"ion or s"i=ula"ion "here shall also 0e included a s"a"e?en" indica"ing ;he"her i" is "he

irs", second, "hird, e"c., reques"ed e*"ension, i.e.: !''6N )6R ES'EN!6N 6) 'E '6

)E 6'6N! @)irs" Reques" @c 'he Cour" ?a- se" aside an- e*"ension o0"ained in con"raven"ion

o "his Rule. @d s"i=ula"ion or ?o"ion seeing "o e*"end "he "i?e "o ile an o==osi"ion or inal re=l-

"o a ?o"ion, or "o e*"end "he "i?e i*ed or hearing a ?o"ion, ?us" s"a"e in i"s o=ening =aragra=h "he

iling da"e o "he ?o"ion.

'o "he e*"en" i" has no" alread- 0een ;aived, "he undersigned ?aes "his as onl- a s=ecial

a==earance "o challenge "he ac" "ha" o==osing counsel 6GRoure never did a==ro=ria"el- serve a

co?=le"e co=- o all "he e*hi0i"s "o "he ini"ials !u??ons and Co?=lain", as such service and =rocess

are deicien" and "he su??ons is no longer "i?el-.

Rule 7&&3. Co??ence?en" o dversar- roceeding Rule 3 ).R.Civ.. a==lies in adversar-

=roceedings. Rule 7&&4. rocessL !ervice o !u??ons, Co?=lain" @a !u??onsL serviceL =roo o

service. Rule 4@a, @0, @c@1, @d@1, @e(@, @l, and @? ).R.Civ.. a==lies in adversar- =roceedings.

ersonal service =ursuan" "o Rule 4@e(@ ).R.Civ.. ?a- 0e ?ade 0- an- =erson a" leas" 1$ -ears o

age ;ho is no" a =ar"-, and "he su??ons ?a- 0e delivered 0- "he cler "o an- such =erson. @0

!ervice 0- irs" class ?ail.

Rule 7&12. /eenses and 60ec"ions((hen and 8o; resen"ed((B- leading or o"ion((

o"ion or Audg?en" on "he leadings @a hen =resen"ed. a co?=lain" is dul- served, "he

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deendan" shall serve an ans;er ;i"hin 3& da-s a"er "he issuance o "he su??ons, e*ce=" ;hen a

dieren" "i?e is =rescri0ed 0- "he cour". 'he cour" shall =rescri0e "he "i?e or service o "he ans;er

;hen service o a co?=lain" is ?ade 0- =u0lica"ion or u=on a =ar"- in a oreign coun"r-. =ar"-

served ;i"h a =leading s"a"ing a cross(clai? shall serve an ans;er "here"o ;i"hin 2& da-s a"er

service. 'he =lain"i shall serve a re=l- "o a coun"erclai? in "he ans;er ;i"hin 2& da-s a"er service

o "he ans;er or, i a re=l- is ordered 0- "he cour", ;i"hin 2& da-s a"er service o "he order, unless "he

order o"her;ise direc"s. 'he ni"ed !"a"es or an oicer or agenc- "hereo shall serve an ans;er "o a

co?=lain" ;i"hin 3% da-s a"er "he issuance o "he su??ons, and shall serve an ans;er "o a cross(

clai?, or a re=l- "o a coun"erclai?, ;i"hin 3% da-s a"er service u=on "he ni"ed !"a"es a""orne- o "he

=leading in ;hich "he clai? is asser"ed. 'he service o a ?o"ion =er?i""ed under "his rule al"ers "hese

=eriods o "i?e as ollo;s, unless a dieren" "i?e is i*ed 0- order o "he cour": @1 i "he cour" denies

"he ?o"ion or =os"=ones i"s dis=osi"ion un"il "he "rial on "he ?eri"s, "he res=onsive =leading shall 0e

served ;i"hin 1& da-s a"er no"ice o "he cour"Gs ac"ionL @2 i "he cour" gran"s a ?o"ion or a ?ore

deini"e s"a"e?en", "he res=onsive =leading shall 0e served ;i"hin 1& da-s a"er "he service o a ?ore

deini"e s"a"e?en". @0 ==lica0ili"- o Rule 12@0(@h ).R.Civ.. Rule 12@0(@h ).R.Civ.. a==lies in

adversar- =roceedings. res=onsive =leading shall ad?i" or den- an allega"ion "ha" "he =roceeding is

core or non( core. "he res=onse is "ha" "he =roceeding is non(core, i" shall include a s"a"e?en" "ha"

"he =ar"- does or does no" consen" "o en"r- o inal orders or udg?en" 0- "he 0anru="c- udge. n

non(core =roceedings inal orders and udg?en"s shall no" 0e en"ered on "he 0anru="c- udgeGs order

e*ce=" ;i"h "he e*=ress consen" o "he =ar"ies. Rule 7&13. Coun"erclai? and Cross(Clai? Rule 13

).R.Civ.. a==lies in adversar- =roceedings, e*ce=" "ha" a =ar"- sued 0- a "rus"ee or de0"or in

=ossession need no" s"a"e as a coun"erclai? an- clai? "ha" "he =ar"- has agains" "he de0"or, "he

de0"orGs =ro=er"-, or "he es"a"e, unless "he clai? arose a"er "he en"r- o an order or relie. "rus"ee

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or de0"or in =ossession ;ho ails "o =lead a coun"erclai? "hrough oversigh", inadver"ence, or

e*cusa0le neglec", or ;hen us"ice so requires, ?a- 0- leave o cour" a?end "he =leading, or

co??ence a ne; adversar- =roceeding or se=ara"e ac"ion.

'he undersigned ur"her ;ishes "o asser" =rocedural and su0s"an"ive deiciencies inheren" "o

"he regis"ra"ion o "his oreign udg?en" in C#&+(&1423 ( '8E C/E C6 #! R6BER' EER

@/7 )iling /a"e: onda- , Aune 19"h, 2&&+. )ur"her, "here a==ears "o 0e su==or" or "he con"en"ion

"ha" r. eller ;as never a==ro=ria"el- served in "ha" ?a""er, and cer"ianl- =ersonal service ;as no"

eec"ed, and i" is no" clear "ha" r. eller "rul- ;aived an- such deiciencies.

Rule 7&12. /eenses and 60ec"ions((hen and 8o; resen"ed((B- leading or o"ion((o"ion or

Audg?en" on "he leadings @a hen =resen"ed. a co?=lain" is dul- served, "he deendan" shall

serve an ans;er ;i"hin 3& da-s a"er "he issuance o "he su??ons, e*ce=" ;hen a dieren" "i?e is

=rescri0ed 0- "he cour". 'he cour" shall =rescri0e "he "i?e or service o "he ans;er ;hen service o a

co?=lain" is ?ade 0- =u0lica"ion or u=on a =ar"- in a oreign coun"r-. =ar"- served ;i"h a =leading

s"a"ing a cross(clai? shall serve an ans;er "here"o ;i"hin 2& da-s a"er service. 'he =lain"i shall

serve a re=l- "o a coun"erclai? in "he ans;er ;i"hin 2& da-s a"er service o "he ans;er or, i a re=l-

is ordered 0- "he cour", ;i"hin 2& da-s a"er service o "he order, unless "he order o"her;ise direc"s.

'he ni"ed !"a"es or an oicer or agenc- "hereo shall serve an ans;er "o a co?=lain" ;i"hin 3% da-s

a"er "he issuance o "he su??ons, and shall serve an ans;er "o a cross(clai?, or a re=l- "o a

coun"erclai?, ;i"hin 3% da-s a"er service u=on "he ni"ed !"a"es a""orne- o "he =leading in ;hich

"he clai? is asser"ed. 'he service o a ?o"ion =er?i""ed under "his rule al"ers "hese =eriods o "i?e as

ollo;s, unless a dieren" "i?e is i*ed 0- order o "he cour": @1 i "he cour" denies "he ?o"ion or

=os"=ones i"s dis=osi"ion un"il "he "rial on "he ?eri"s, "he res=onsive =leading shall 0e served ;i"hin

1& da-s a"er no"ice o "he cour"Gs ac"ionL @2 i "he cour" gran"s a ?o"ion or a ?ore deini"e

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s"a"e?en", "he res=onsive =leading shall 0e served ;i"hin 1& da-s a"er "he service o a ?ore deini"e

s"a"e?en". @0 ==lica0ili"- o Rule 12@0(@h ).R.Civ.. Rule 12@0(@h ).R.Civ.. a==lies in

adversar- =roceedings. res=onsive =leading shall ad?i" or den- an allega"ion "ha" "he =roceeding is

core or non( core. "he res=onse is "ha" "he =roceeding is non(core, i" shall include a s"a"e?en" "ha"

"he =ar"- does or does no" consen" "o en"r- o inal orders or udg?en" 0- "he 0anru="c- udge. n

non(core =roceedings inal orders and udg?en"s shall no" 0e en"ered on "he 0anru="c- udgeGs order

e*ce=" ;i"h "he e*=ress consen" o "he =ar"ies. Rule 7&13. Coun"erclai? and Cross(Clai? Rule 13

).R.Civ.. a==lies in adversar- =roceedings, e*ce=" "ha" a =ar"- sued 0- a "rus"ee or de0"or in

=ossession need no" s"a"e as a coun"erclai? an- clai? "ha" "he =ar"- has agains" "he de0"or, "he

de0"orGs =ro=er"-, or "he es"a"e, unless "he clai? arose a"er "he en"r- o an order or relie. "rus"ee

or de0"or in =ossession ;ho ails "o =lead a coun"erclai? "hrough oversigh", inadver"ence, or

e*cusa0le neglec", or ;hen us"ice so requires, ?a- 0- leave o cour" a?end "he =leading, or

co??ence a ne; adversar- =roceeding or se=ara"e ac"ion.

.LE!AL ANAYLSIS

?end?en" o co?=lain" =ar"- ?a- a?end "he =ar"-Gs =leading once as a ?a""er o course a"

an- "i?e 0eore res=onsive =leading is served or, i "he =leading is one "o ;hich no res=onsive

=leading is =er?i""ed and "he ac"ion has no" 0een =laced u=on "he "rial calendar, "he =ar"- ?a- so

a?end i" a" an- "i?e ;i"hin 2& da-s a"er i" is servedL o"her;ise a =ar"- ?a- a?end "he =ar"-Gs

=leading onl- 0- leave o cour" or 0- ;ri""en consen" o "he adverse =ar"-, and leave ?us" 0e reel-

given ;hen us"ice so requires. )ed. R. Civ. . 1%@a, ?ade a==lica0le in adversar- =roceedings 0-

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)ed. R. Banr. . 7&1%. 'his rule is a==lica0le "o co?=lain"s o0ec"ing "o discharge. )our"h Circui" n

re 'es"er, %+ B.R. 2&$ @./. #a. 19$%. %B )ed. roc., . Ed. H 9:17%& 0anru="c- cour" lacs

au"hori"- "o gran" an un"i?el- ?o"ion "o a?end an adversar- co?=lain" "o s"a"e ne; causes o ac"ion

o0ec"ing "o discharge ;here such ?o"ion is no" iled un"il a"er "he deadline or o0ec"ing "o

discharge. Eigh"h Circui" n re Bo


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asser"ed 0- deendan" regarding =re( or =os"=e"i"ion na"ure o unds i" ;as ;i"hholding. n re )le?ing

Co?=anies, nc., 323 B.R. 144, +1 )ed. R. !erv. 3d 29+ @Banr. /. /el. 2&&%. ddi"ional clai?s "ha"

Cha="er 11 "rus"ee sough" "o asser", in his a?ended co?=lain", agains" 0an "ha" inanced "he

leveraged 0u-ou" @B6 "ha" he challenged as ac"uall- and cons"ruc"ivel- raudulen" "ranser, or

0anGs alleged i?=roviden" lending and aiding in 0reach o iduciar- du"-, ;ere no" "i?e(0arred, 0u"

rela"ed 0ac "o his original "i?el- co?=lain", ;here "hese addi"ional clai?s arose ou" o "he sa?e

ac"s as "hose "ha" or?ed 0asis o "rus"eeGs ori( ginal clai?s agains" 0an. n re 66/C, C, 321

B.R. 12$ @Banr. /. /el. 2&&%. Dndue =reudiceGG "o =ar"- o==osing ?o"ion or leave "o a?end

co?=lain" is ?ore "han ?ere inconvenienceL i" is ound onl- ;here "he =ar"- ?us" overhaul i"s en"ire

li"iga"ion s"ra"eg-. n re )le?ing Co?=anies, nc., 319 B.R. 3%9 @Banr. /. /el. 2&&%. Cha="er 11

de0"orsG ?o"ion "o a?end "heir a?ended adversar- co?=lain" ;ould 0e denied as un"i?el- ;here,

al"hough ?o"ion ;as ?ade ;i"hin e*"ended =eriod or ?aing =re"rial ?o"ions, de0"ors ailed "o

us"i- "heir e*"ended and undue dela- in ;ai"ing un"il ;ell over a -ear a"er "he =ar"ies had agreed

"ha" "he =leadings ;ere Dse""ledD "o reques" ur"her a?end?en", and "o allo; de0"ors "o add ne;

causes o ac"ion and change "he ocus o "he li"iga"ion a"er discover- had 0een co?=le"ed, and a"er

deendan"s had inves"ed signiican" "i?e and ?one- in =re=aring and =resen"ing su??ar- udg?en"

?o"ions on "he =leadings, ;ould have 0een =reudicial "o deendan"s. n re 'horian, 3$7 B.R. %&

@Banr. /. daho 2&&$.

lain"i has ?ade no" a""e?=" "o e*=lain ;h- i" is a si?=le search o acer or cour" records

;ould no" have revealed "he incredi0l- eas- "o discover ac" "ha" eller iled a Cha="er 7 0anru="c-

=e"i"ion in 199&. lain"i in no ;a- s=eciies in an- de"ailing ;ha"soever s=eciicall- ho;, a" 0o"h

e*a?ina"ions, lain"i learned addi"ional ac"s "o su==or" "he novel cause o ac"ion con"ained in i"s

?ended Co?=lain". ha" ac"sT 8o; do "he- su==or" "he ne; cause o ac"ion in "he ?ended

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Co?=lain"T lain"i =rovides no su==or" or an argu?en" "ha" such ac"s ;ere no" easil-

discovera0le "hrough a reasona0l- diligen" inquir- 0- lain"i, such as checing cour"s records or

acer "o see i a =revious 0anru="c- had 0een iled 0- eller. " does no" "ae a grea" 0ig 0illing

even" lie de=osing eller and his ;ie "o ind "ha" ou", and ur"her, lain"iGs ailure "o do so is no"

e*cused ?erel- 0- "he ac" "ha" lain"i ?a- have su0sequen"l- 0eco?e a;are o "he 199& iling via

"he de=osi"ions. 'he =oin" is, a reasona0l- diligen" inquir- 0- lain"i ;ould have revealed "he 199&

iling, and lain"i has ?ade no a""e?=" "o es"a0lish "ha" "he de=osi"ions o eller and his ;ie -ield

an- s=ecial inor?a"ion "ha" ;ould e*cuse lain"iGs earlier lac o diligence or "he undue 0urden

and e*=ense is has caused eller. ha" is clear is "ha" eller can =roduce a cover le""er and )edE*

0illing o lading "ha" ;ere ?ailed along ;i"h "he !"i=ula"ed Audg?en" on "he eve o "rial on "ha"

s=eciicall- reer "o "he "als and docu?en"s involved in incor=ora"ing in"o "he !"i=ula"ed Audg?en"

"he !e""le?en" gree?en" eller can =roduce @i no" ?ore, de=ending u=on ;ha" is recovera0le ro?

Bi""ing and Bro;nGs dus"- iles da"ed =ril 1&, 199%, "ha" ?ore clearl- se"s or "he ac" "ha" eller

did no" s"i=ula"e "o an- raudulen" conduc" or a idicuar- or "rus" rela"ionshi= in connec"ion ;i"h "he

Audg?en" en"ered in a- 199%. Cer"ainl-, even i so?e"hing isnG" ound in Bi""ing @"he ReceiverGs

a""orne- or ellerGs old counsel Bro;nGs iles, "he =ril 1&, 199% !e""el?en" gree?en" and "he

cover le""er and )edE* 0ill o lading eller can =roduce and ;hich ;ere ?ailed along ;i"h ellerGs

signed !"i=ula"ed Audg?en" on arch 23 or "herea0ou"s, =laced "he onus on Bi""ing and "he Receiver

"o ?ae so?e air?a"ive ac"ion "o disavo; "he con"en"ions ?ade 0- eller "herein ;i"h res=ec" "o

"he e*cu=la"or- na"ure o "he discussions and docu?en"s connec"ed "o "he Audg?en" en"ered in a-

199%.

llo;ing Cadle "o a?end here cer"ainl- ;ould a?oun" "o undue =reudice "o eller. lread-,

us" "o ile "his 6==osi"ion, eller has 0een orced "o =rocure "he services o "he undersigned, and

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a0sen" "ha", eller ;ould 0e =a-ing a ;eeend =lu?0erGs e?ergenc- ranso? "o address a si"ua"ion

caused 0- 6GRoureGs ailure "o run a na?e search or eller "o discover- =revious 0anru="c-Gs and

"he doce"s "herero?. 6GRoure should surel- 0e a;are o and a0le "o use acer. )ur"her,

6GRoure, ;hose aggresive li"iga"ing is having a dele"erious eec" on eller or sure, doesnG" even

0o"her "o ci"e a single case in su==or" o his Dres udica"aD argu?en" @;ouldnG" "ha" argu?en" ;or "he

o"her ;a- "oo, i.e, since "here ;as no language s=eciicall- incor=ora"ing 0- reerence "he allega"ions

o "he Co?=lain" in "he Audg?en", "he issue "ha" eller co??i""ed no raud is 0arred 0- issue or clai?

=reclusionT

;es" Co??unica"ions n"ern., nc. v. ' U ' Cor=., 114 !..3d 1% 'e*.==.us"in,2&&3

Cour" rendering agreed udg?en" ?us" do so in s"ric" or li"eral co?=liance ;i"h se""le?en" agree?en"

#ernonGs nn.'e*as Rules Civ.roc., Rule 11. ssues o raud or ;illul evasion o "a*es ;ere never

ac"uall- li"iga"ed or ad?i""ed as "o de0"or 19$4 "a* lia0ili"ies in li"iga"ion 0eore 'a* Cour", and "hus,

de0"or ;as no" colla"erall- es"o==ed "o den- nondischargea0ili"- o 19$4 "a* de0" 0ased on his

consen" "o decision 0- ni"ed !"a"es 'a* Cour" o decision i?=osing raud =enal"ies, ;here no

ad?issions, ac"ual indings, or in"en"ion o =ar"ies concerning raud issue or ;illul evasion or 19$4

"a*es ;ere incor=ora"ed in"o 'a* Cour" decision, govern?en" ad?i""ed in i"s ans;er "ha" raud

=enal"ies, ;hich ;ere onl- discerni0le reason ro? ace o 'a* Cour" decision or den-ing

dischargea0( ili"- o 19$4 "a* lia0ili"-, ;ere dischargea0le, and s"i=ula"ed en"r- o decision ;as 0are

o an- ac"ual su==or". Banr.Code, 11 .!.C.. H %23@a@1@C. n re Mo, 1$& B.R. 193, Banr. .

Re=. @CC8 7+497, 7% .).'.R.2d9%(2%31 @Banr. ./. 'enn. 199%.

1% ..R. )ed. 2d 337 @6riginall- =u0lished in 2&&+ !ee =age 149 "hru 1+& s=eciic "o

insurance indus"r-. Dhere "he nsurance Co??issioner o "he !"a"e o es" #irginia

@Co??issioner ;as a=( =oin"ed "he receiver and liquida"or o an insolven" lie insurance co?=an-,

- 23-

http:///reader/full/A.F.T.R.2dhttp:///reader/full/A.F.T.R.2d


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and "he Co??is( sioner sued "he or?er direc"ors o "he lie insurance co?=an-, "he cour" in n re

il0ur, 1997 37%+$7 @Banr. ./. )la. 1997, ound "ha" "he Co??issioner ailed "o =resen"

evidence "ha" a de0"or or?er direc"or co??i""ed raud ;hile ac"ing in a iduciar- ca=aci"-, since "he

s"a"e cour"Gs holdings regarding "he de0"orGs iduciar- role did no" sa"is- "he require?en"s o "he

discharge e*ce="ion or raud or dealca"ion ;hile ac"ing in a iduciar- ca=aci"- under 11 .!.C.. H

%23@a@4. )lorida /e=ar"?en" o nsurance, in i"s ca=aci"- as "he receiver o insolven" insurance

co?=anies, 0rough" adversar- =roceedings agains" a 0anru=" or?er oicer and direc"or "o recover

or "he or?er oicerGs alleged usur=a"ion and 0reach o iduciar- du"- and "o e*ce=" "his

inde0"edness ro? discharge, and on "he de0"or oicerGs ?o"ion or su??ar- udg?en", "he cour" in

n re Blac0urn, 2&9 B.R. 4 @Banr. ./. )la. 1997, concluded "ha" "he general iduciar- du"ies

o;ed "o a )lorida cor=ora"ion 0- i"s oicers and direc"ors ;ere insuicien", 0- "he?selves, "o su==or"

"he clai? "ha" "he oicers and direc"ors s"ood in a Diduciar- ca=a( ci"-D "o "he cor=ora"ion or de0"

dischargea0ili"- =ur=oses under 11 .!.C.. H %23@a@4L 1% ..R. )ed. 2d 337 age 1+& 1% ..R.

)ed. 2d 337 @6riginall- =u0lished in 2&&+. D'he cour" n re Nords"ro?, $ )ed. ==*. $23 @9"h Cir.

2&&1, held "ha" no iduciar- rela( "ionshi=, or "he =ur=oses o "he iduciar- raud or dealca"ion

discharge e*ce="ion o 11 .!.C.. H %23@a@4, e*is"ed 0e";een "he udg?en"(credi"or and "he

individual de0"or as o;ner and o=era"or o ";o rela"ed cor=ora"ions engaged in "he sale o insurance

;here "he credi"or could no" sho; "he requisi"e e*=ress or "echnical "rus" 0e";een "he =ar"ies. 'he

credi"( or had 0een inured in an au"o?o0ile acciden" and o0"ained a deaul" udg?en" agains" "he o"h(

er driver, ;ho ;as insured 0- an insolven" co?=an- "ha" sold insurance "hrough "he de0"orGs

cor=ora"ion. 'he credi"or "hen iled a s"a"e cour" ac"ion agains" "he de0"or, individuall- and "hrough

his co?=anies, alleging "ha" he had in"en"ionall- engaged in a raudulen" sche?e "o sell underunded

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insurance =olicies in viola"ion o Caliornia la;, and o0"ained udg?en" agains" "he de0"or

co?=anies.D

Rule 7&1% )ed. R. Banr. ., incor=ora"ing Rule 1% )ed. R. Civ. ., =rovides a s"andard or

"he a?end?en" o =leadings. "er, ;here, as here, /eendan" has alread- iled a res=onsive

=leading, leave "o a?end should 0e gran"ed unless a?end?en" ;ould cause =reudice "o "he o==osing

=ar"-, is sough" in 0ad ai"h, is u"ile, or crea"es undue dela-. Aohnson v. a??o"h Recrea"ions, 97%

).2d +&4, +&7 @9"h Cir. 1992. n "his case, lain"i should no" 0e accorded leave "o a?end i"s

adversar- co?=lain" on all "hose accoun"s, and ur"her, as lain"i and i"s counsel "horoughl- ails "o

s=eci- in an- de"ail ;ha"soever ;ha" addi"ional inor?a"ion regarding /eendan"Qs ac"ions and "he

underl-ing udg?en" ca?e "o ligh" a"er "he iling o "he ini"ial adversar- =roceeding "ha" a si?=le

na?e search or eller on acer or "he 0anru="c- doce"s or an- o"her a""e?="s a" ?aing a

reasona0l- diligen" inquir- vis a vis Rule 9&11 ;ould have revealed. !=eaing o 9&11, o==osing

counsel ails "o ci"e "o a single case su==or"ing his "rul- crea"ive res udica"a argu?en", and "he sa?e

can 0e said, ;i"h ever ?ore vigor a0ou" lain"iGs ailure "o =rovide an- legal su==or" or ;ha" see?s

"o 0e "heir con"en"ion "ha" eller ;as under so?e legal du"- "o 0eco?e a =s-chic and no; "ha" 3

-ears a"er "he close o "he 0anru="c- eller iled in 199& "ha" eller ;ould have a udg?en" agains"

hi? in 'e*as in 199%, "hough 6GRoure ?aes conclusor- asser"ions in his =leadings "ha" ellerGs

Dlia0ili"- ;as clearD 0- "he "i?e "he 199& Ch. 7 iling ;as ending @no" clear enough, a==aren"l-, "o

=reven" over "hree ?ore -ears "i?e =assing 0eore an- udg?en" ;as rendered agains" eller in

'e*as, "hough, ho;ever, 6GRoure ails "o ci"e even one case "ha" ;ould su==or" his argu?en" under

"hose circu?s"ances, even i "he- could 0e =roven. 6GRoure ailed "o ci"e a case or ;ha" see?s "o

0e his argu?en" "ha" i ellerGs lia0ili"- ;as clear vis a vis "he 'e*as ?a""er, i" should have 0een

scheduled in "he 199& ri


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ellerGs ailure "o do so no; su0ec"s hi? "o "he cause o ac"ion "ha" "he Cadle Co?=an- no; sees "o

add 0- a?ending i"s original Co?=lain" in "his adversar- =roceeding. lain"iQs a?end?en" ;ill

cer"ainl- dela- "he =roceedings even ur"her since each cause o ac"ion does no" su0s"an"iall- overla=

or rela"es 0ac "o "he original co?=lain". c"uall-, 6GRoure has no" even es"a0lished "ha" "his ne;

cause o ac"ion does rela"e 0ac "o !6E'E BE)6RE "he iling o "he original Co?=lain" in

'e*as @again, Cadle requiring eller "o 0e a =s-chic, a==aren"l-. ui"e si?=l-, "he de0" "ha"

/eendan" o;es lain"i could no" have =ossi0l- 0een lis"ed or scheduled 0- "he de0"or in his earlier

case in "he ni"ed !"a"es Banru="c- Cour" o "he /is"ric" o ri


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es"o==el and o"her;ise did no" co?e ;i"hin "he urisdic"ion o "he Cour" o )ederal Clai?s, and "hus

ur"her a?end?en" ;as u"ile. !aladino v. .!., +2 )ed. Cl. 7$2 @2&&4.

)inall-, deendan" ;ill "horoughl- 0e =reudiced as a grea" deal o invasive discover- has

"aen =lace "o da"e alread- and Cadle has 0een =rovided conclusive =roo "ha" ellerGs ;ie should

no" 0e 0o"hered 0- "his li"iga"ion, ?uch less 0e su0ec" "o even ?ore invasive ve*a"ion even 0e-ond

"he Rule 2&&4 e*a?ina"ion she has alread- 0een orced "o su0?i" "o. !ince so ver- ?uch "i?e has

no; =assed since "he iling o "his dversar- roceeding, no" "o ?en"ion "he cou=le o decades "ha"

have =assed since ellerGs 199& ris> Zachar- Barer Coughlin

Zachar- Barer Coughlin, Esq.

""orne- or /eendan"

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28


CER')C'E 6) !ER#CE N/ NM

8EREB5 CER')5 "ha" on )e0ruar- 14"h, 2&12 a "rue and correc" co=- o "he oregoing ;aselec"ronicall- iled on "he C>EC) s-s"e?. iled and de=osi"ed in "he .!. ail a "rue co=- o "he

oregoing "o:

C8E . 6QR6RE, E!.Nevada Bar No. +7+46QR6RE MR6, C$&& )i"h venue, !ui"e 41&&!ea""le, ashing"on 9$1&4'ele=hone: @2&+ 477(147%)acsi?ile: @2&+ 47&(11%&orourela;grou=Vg?ail.co?BRN A. !'8, E!.

Nevada Bar No. 112796 Counsel "o 6QR6RE MR6, C7&& !ou"h 'hird !"ree"as #egas, Nevada $91&1'ele=hone: @7&2 3$&($24$)acsi?ile: @7&2 3$2(7%9%""orne-s or lain"i

/a"ed "his )e0ruar- 14"h, 2&12

>s> Zach Coughlin

Zach Coughlin, Esq. ""orne- or /eendan" eller
mailto:[email protected]:[email protected]

Documents

3 14 12 Nvb 05104 Keller Beesley Motion for Extension of Time to File Bankr.d.nev.-114021412266