KEY STUDIES AND ACTIVITIES

Internal Controls and Audits

As part of the Court’s ongoing commitment to responsible stewardship and effective oversight, 10 internal reviews were completed, including five divisional offices and five administrative departments. Generally these audits assess: effectiveness and efficiency of operations; compliance with laws and regulations; adherence to local policies and procedures; and AO administrative policy. Additionally, the intended purpose of the reviews is to provide an objective analysis of the department’s operations in an effort to assist management with improving its operations. The reviews are essential in providing accountability for public resources.

Trustee Payments

The Court continued its aggressive efforts to discharge and close cases, closing 146,345 cases in 2011. The Clerk’s Office paid out $6.73 million in trustee payments, breaking the previous year’s post-BAPCPA record ($6.16 million). Total trustee payments in 2011 exceeded 2010 by 9 percent.

Revisions to Court Manual

The Court Manual, which supplements the Court’s LBRs, provides specific information about the Court, instructions, and notice of other requirements to lawyers, legal assistants, and the public. The Court revised the Court Manual throughout 2011. Major revisions include updates to the list of judges, case commencement procedures, chambers contact numbers, addresses for the California Franchise Tax Board and for serving the judge’s copy, and judges’ emergency motion contacts. The Court Manual is available at the “Forms/Rules/General Orders” section of the website.

Revisions to Local Bankruptcy Rules Forms

The Court approved a number of new and revised Local Bankruptcy Rules (LBR) forms that became effective during 2011, including forms to permit loan modification discussions between debtors and mortgage lenders without violating the stay; forms to streamline the process and reduce the expense of handling an individual chapter 11 case; forms specific to chapter 13 cases; and forms for relief from the automatic stay involving real property. A total of 39 forms (including 7 national forms) were released on the Court’s new biannual timetable, in the months June and December, as outlined in Public Notices 11-010 and 11-024 (see the Court’s website for Public Notices and forms).

General Order 96-05 and Local Bankruptcy Rules Revised

Revised Local Bankruptcy Rules (LBRs) and General Order 96-05 became effective on January 3, 2011, as follows:

• Third Amended General Order 96-05, Attorney Discipline Procedures in Bankruptcy Court, was revised to make orders, opinions, and written memoranda issued on attorney discipline matters available on the Court’s website.
• LBR 1010-1, Involuntary Petitions was modified to enable the Court to dismiss an involuntary case if petitioner fails to prepare a Summons and Notice of Status Conference on the court-mandated form and submit it to the clerk for issuance.
• LBR 3015-1(w)(3), Motions and Applications Filed on Notice of Opportunity to Request a Hearing: Response Filed, had changes to the process for trustee’s motion to dismiss a case and modify a confirmed plan, and debtor’s motion to modify a confirmed plan or extend plan payments.
• LBR 5005-2(d) Judge’s Copy. Judge’s copy requirements were revised to include lodged orders; specify that the Proof of Service must indicate the method of service of the judge’s copy; and note that exceptions to the judge’s copy requirement may be found in the Court Manual.
• LBR 7004-1 Issuance and Service of Summons and Notice of Status Conference was revised to specify the mandatory forms that must be used in preparing a Summons and Notice of Status Conference for execution by the clerk.
• LBR 7056-1(b) Summary Judgment. The number of days for serving a notice of motion and motion for summary judgment was changed from 36 to 42 days before the date of the hearing on the motion.
• LBR 9009-1 Forms. Court mandated forms were designated as “mandatory” and the use of court-approved forms was further clarified.
• LBR 9013-1(o)(2) Matters that May Not be Determined Upon Notice of Opportunity to Request Hearing. An exception was added to this rule for motions to value and avoid junior liens in chapter 11, 12, and 13 cases (“LAM” motions).
• LBR 9013(o)(4) Response and Request for Hearing Filed. The timing in this section was reduced from 21 days to 14 days from the date of service of the response and request for hearing.

Judicial Practices Survey

The Judicial Practices Survey provides the public with detailed information about each of the Central District bankruptcy judges’ specific judicial practices, such as calendaring hearings, tentative rulings, motions practice, format of papers presented to the Court, and chapter 11 and 13 procedures. An updated summary of the judges’ responses was made available in 2011.

Last revised prior to the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, the Judicial Practices Survey was previously referred to as the Judicial Variance Survey. With the assistance of the local bar, the Judicial Practices Survey was updated to incorporate recent changes in law and expanded to include additional types of practices.

A summary of the judges’ Judicial Practices Survey responses is posted on the Court’s website under Information, in the Judges’ Procedures/Information column. The survey summary is also available for a fee at the Intake Section of each of the Court’s five divisions.

Central District Attends National Conference of Bankruptcy Clerks

Nineteen representatives from the Court attended this year’s National Conference of Bankruptcy Clerks (NCBC) in New Orleans, jointly hosted by the bankruptcy courts in Louisiana’s Eastern and Middle Districts from June 14 to June 17. Over 630 bankruptcy clerks from all 50 states made this the largest NCBC ever hosted. The Central District of California's delegation included staff from all five divisions, among them Clerk of Court Kathleen J. Campbell and Chief Deputy of Administration Steven Sloniker.

African-American Heritage Celebration

In a joint venture to celebrate African-American Heritage month, the U.S. Bankruptcy Court and the U.S. District Court held two African-American Heritage Celebrations in the month of February. The first event, held at the U.S. District Court on Spring Street on February 11, was simultaneously broadcast to the divisional offices of both courts. Chief District Judge Audrey B. Collins spoke about her family and how they dealt with life during and after the era of segregation. The second celebration, held at the Roybal Federal Building on February 16, featured introductory remarks by Chief Bankruptcy Judge Peter H. Carroll and speeches and performances by Clerk’s Office staff.

Asian American Pacific Islander Heritage Celebration

On May 20, the U.S. Bankruptcy Court hosted “Paving the Way” in honor of Asian American Pacific Islander Heritage Month. Over 200 people filled the event room and an overflow room that had been prepared with a live videoconference stream for the large crowd. The event was also broadcast to the other four divisions. Speakers included District Judge Jacqueline Nguyen, the first Vietnamese-American federal judge in the United States; Magistrate Judge Jay C. Gandhi, the first Indian-American magistrate judge; and Congresswoman Dr. Judy Chu, representing California’s 32nd District.

Hispanic/Latino Heritage Celebration

On Wednesday, October 12, the Federal Public Defender’s Office and the United States Attorney’s Office hosted “Celebrate! Hispanic/Latino Heritage Month” in the Roybal lobby in Los Angeles. More than 150 people attended the event. Justice Carlos Moreno, a retired associate justice of the California Supreme Court, talked about the landmark civil rights case Mendez v. Westminster and the Ninth Circuit ruling that ended segregation in Orange County public schools. He used the case to illustrate how brave and courageous citizens, lawyers, and judges can improve the world. The event also included the folk dances of Ballet Folklórico Grupo La Rosa and the songs of Chilean singer Elizabeth Figueroa.

Women’s History Month Celebration

On March 11, the Court celebrated Women’s History Month in the Roybal General Assembly Room. Chief Judge Peter H. Carroll commenced the ceremony, providing a brief history of Women’s History Month. He also spoke of the many struggles involved in the progress of women’s rights before introducing the featured speaker, Judge Geraldine Mund.

Judge Mund spoke about her journey from law school to the bench, and from being the first female attorney at the Beverly Hills law firm Foonberg & Frandzel to being the first female bankruptcy judge in the Central District of California. After Judge Mund’s speech, Case Initiation Supervisor Renee Van Duvall read Maya Angelou’s poem “Phenomenal Woman.” Video segments opened and closed the program.

Native American Heritage Celebration

On November 29, the Court hosted the Native American Heritage Celebration in the Roybal General Assembly Room. Chief Judge Peter H. Carroll welcomed all those in attendance. In addition to Bankruptcy Court staff, staff from the District Court, Federal Public Defender, the U.S. Attorney’s Office, and Probation/Pretrial Services were invited. Presenters included representatives from the American Indian Resource Center (AIRC) of Huntington Park Library, and representatives from the Fernandeño Tataviam Band of Mission Indians, whose ancestral territory includes the San Fernando and Antelope Valleys.

Rudy Ortega, Jr., Tribal Administrator and spiritual leader of the Tataviam tribe, and Mark Villaseñor, Director of Cultural Learning, opened the celebration by playing traditional gourd instruments. Michael McLaughlin, County Librarian at AIRC, of the Winnebago Tribe of Nebraska, and Pamela Villaseñor, Director of Special Projects for the Tataviam tribe, then spoke regarding the history and culture of the various Native American tribes in the district. All four speakers took turns speaking, providing the audience with a snapshot of Native American history from the 1700s to the present day.

“Raising the Bar on Bankruptcy” Training Series Provides New Perspectives on Bankruptcy

The Court partnered with the bar to present “Raising the Bar on Bankruptcy,” a year-long training initiative for Court staff. Each month featured an in-depth presentation on bankruptcy from the perspective of attorneys, trustees, and judges. The year-long curriculum was jointly developed by the Clerk’s Office and members of the Los Angeles County Bar Association (LACBA), the LACBA Pro Bono Bankruptcy Subcommittee, and the Central District Consumer Bankruptcy Attorney Association (CDCBAA).

The program gave Court staff the opportunity to learn about a wide range of topics, including commencement of cases, the attorney’s perspective, and the role of the trustee. Judge Alan M. Ahart kicked off the inaugural session on April 7 with an entertaining and informative presentation on the “History and Jurisdiction of Bankruptcy in the USA,” attended by over 80 staff in the Roybal Federal Building.

The Court wishes to extend its sincere appreciation to the local bar for their assistance in providing valuable training for Court staff and offers special thanks to the “Raising the Bar” training committee members who collaborated with the Court to develop the curriculum: Brian Holman, Keith Higginbotham, Karen Rinehart, Jason Wallach, Howard Camhi, Bernard Given, Marisa Hawkins, and Jerry Namba.

Management Excellence Survey and Work Environment Survey

In March, the Court announced that it had partnered with the Federal Judicial Center (FJC) to assist the Clerk’s Office with its goals to improve communication and leadership, as well as to provide a more positive work environment. In support of these areas, all employees were asked to complete two confidential online surveys, the Management Excellence Survey (MES) and the Work Environment Survey (WES). The MES asked employees to assess the leadership style of his or her manager, supervisor, or team or project leader, particularly in the areas of Six Leadership Actions: 1) Use Positive Reinforcement; 2) Ask About Questions, Problems and Concerns, and How You Can Help; 3) Ask for Input Prior to Decision Making; 4) Provide Information and Feedback in a Timely Manner; 5) Don’t Over or Under-Manage; and 6) Treat People With Respect. The WES was designed to focus on assessing employees’ overall satisfaction and perceptions of the workplace environment.

Once the results were compiled, CACB leaders met in May with three executives from other federal court units who had undergone the MES/WES process themselves, and who had been trained by the FJC to interpret and present the survey results. Managers, supervisors, and other court leaders learned and discussed the Court-wide MES/WES results at an all-management meeting, and then had a one-on-one coaching session to review their individual MES reports.

The Court has chosen to emphasize Leadership Actions #2, 3, and 4, as they provide the biggest opportunities for improvement. Because all Six Leadership Actions are interrelated, an improvement in one or more areas will result in improvement in others. In July, the Court communicated its action plan to all staff. Such commitments include, but are not limited to: increasing two-way communication at recurring staff meetings; creating an online suggestion box with established mechanisms to ensure follow-up; designing and rolling out the Gateway Leadership Program to specifically support the Leadership Actions; branding the Building on the Six logo and standards to increase program awareness; regularly providing managers with speaking points regarding Court-wide current events to promote consistent and timely dissemination of information and retrieval of feedback from all areas of the Court; and re-engineering management and supervisory-level standing meetings to improve cross-departmental/divisional communication and collaboration.

Interagency Picnic

An annual interagency picnic took place on Saturday, August 20, at La Mirada Regional Park. Staff members and their families from the Federal Public Defender's Office, U.S. Attorney's Office, U.S. Bankruptcy Court, U.S. District Court, U.S. Marshals Service, U.S. Pretrial Services, and U.S. Probation Office came together to enjoy the food, games, and most of all, each other.

Over 500 attendees, including Judges Maureen A. Tighe, Scott C. Clarkson, and Sandra R. Klein, Clerk of Court Kathleen J. Campbell, Chief Deputy of Administration Steven Sloniker, Senior Deputy-in-Charge Paula Roe, and numerous Clerk's Office staff joined in the fun.

The picnickers feasted on a buffet of burgers, hot dogs, potato salad, and sandwiches. The ice cream station enthralled the adults and kids alike, and everyone made their own unique ice cream sundaes. Attendees participated in games such as volleyball, water balloon tosses, tug of war, and hula hooping. The kids had even more fun by working off their energy in the jumper, hopping in potato sack races, and being mesmerized by the magician. The Bankruptcy Court joined forces with District Court to compete against the U.S. Attorney’s Office in the softball game, winning the coveted trophy by a score of 13 to 11. The trophy is now proudly displayed in Judge Clarkson’s chambers.

Winter Education Seminar

The 2011 Winter Education Seminar took place on Friday, December 2 at the Ronald F. Deaton Civic Auditorium in Los Angeles. Three presenters took up the seminar’s theme, “Communicating for Success.” In the morning, body language expert Jan Hargrave of Jan Hargrave and Associates discussed nonverbal communication. Leadership specialist Greg Gray of Renaissance Unlimited spoke about identifying different personality types in the workplace and adapting to their communication styles. In the afternoon, Corrin Gee of the Federal Judicial Center lectured on knowing how to avoid giving legal advice when dealing with self-represented debtors. Gee’s interactive presentation incorporated skits by Court staff and electronic voting by audience members on what was legal or procedural advice. Following the quarterly Board of Judges meeting, judges and their staff joined the afternoon session.

Central District Achieves Lowest BNC Costs in Nation

In 2011, the Central District achieved the lowest Bankruptcy Noticing Center (BNC) costs per case nationwide when measured against new cases filed. Annually, the Court’s efficiency saves the judiciary approximately $2 million, compared with the national average. These savings are the result of strong collaboration among clerks, law clerks, and judges to streamline Court procedures, reducing BNC printing and postage costs. The Court has enrolled attorneys, trustees, and the U.S. Trustee to receive a high percentage of orders and notices only via Notice of Electronic Filing (NEF), because with the Reduced Paper Module feature of CM/ECF, those who receive a document electronically no longer also receive it by mail from the BNC. The Court’s Calendaring Information and Orders program (CIAO!) is programmed to send orders only to parties who filed papers in connection with a motion. Additionally, the Court combines orders and related notices in a single mailing, and the Court Manual and Court practices have reduced the page length of many notices and orders.