PUBLIC OUTREACH

Official Visits

Foreign Delegations Visit Los Angeles Division

Three foreign delegations visited the Los Angeles Division in 2012 in order to learn more about American bankruptcy law and practice. The first group, made up of 17 judges from the Shandong Province of China, toured the Los Angeles Division on August 15. The judges, visiting Southern California through an international program at CSU Long Beach, were accompanied by an associate professor from the Judges Training Institute of Shandong Province. After a tour of the Clerk’s Office operations and administration, the judges visited Chief Judge Peter H. Carroll’s courtroom, where they received a demonstration of the Court’s video hearing technology. Judge Sheri Bluebond greeted the judges and gave them an overview of Title 11 before taking questions. The tour concluded with a visit to Judge Bluebond’s chambers.

On September 17, nine high-ranking bankruptcy officials from the Ukraine visited the division. Chief Judge Peter H. Carroll welcomed the delegates and Executive Officer/Clerk of Court Kathleen J. Campbell provided an overview of the structure and functions of the Court and the Clerk’s Office. The Ukrainian delegation then took a tour of the Roybal Federal Building and Courthouse.

On September 18 and 19, a delegation of 24 members from the Academic and Legal Affairs Division of Thailand, whose role is analogous to that of trustees in the American bankruptcy system, visited the division. On the first day, the delegates visited Judge Barry Russell’s courtroom. After brief welcoming remarks from Executive Officer/Clerk of Court Kathleen J. Campbell, Judge Barry Russell spoke about bankruptcy mediation and other topics of interest. The following day, the Thai delegation observed a proceeding in Judge Thomas B. Donovan’s courtroom and toured the Roybal Federal Building and Courthouse. Chief Judge Peter H. Carroll presented the delegates with commemorative Central District coins, and the Executive Team fielded their questions.

COMMUNITY OUTREACH

First Pro Se Annual Report Published

In April, the Court published its first annual report on the district’s pro se litigants.
Access to Justice in Crisis: Self-Represented Parties and the Court provides a comprehensive analysis
of the Central District’s large self-represented population, measurements of that
population’s impact on the Court, and an overview of services and programs that assist pro se parties
throughout the district. The report also identifies problems that beset self-represented parties
and indicates areas where more research and resources are needed.

2012 William J. Lasarow Awards

On June 12, 2012, the William J. Lasarow Awards Ceremony was held at the Roybal Federal Building and Courthouse in Los Angeles. The annual presentation of the Lasarow Awards recognizes the outstanding contributions of bankruptcy pro bono volunteers. Public Counsel, the nation’s largest pro bono law firm, honors volunteers for donating their time to make access to justice a reality for individuals and families who have nowhere else to turn for legal assistance and representation. Public Counsel and the pro bono partner programs at the event assist close to 8,000 self-represented litigants a year, and the Lasarow Awards presentation celebrates this remarkable accomplishment that would not be possible without the participation of pro bono bankruptcy attorneys.

Public Counsel Senior Staff Attorney Magdalena Reyes Bordeaux, who manages Public Counsel’s Debtor Assistance Project, opened the ceremony. Hernán Vera, President and CEO of Public Counsel, then introduced the Honorable Vincent P. Zurzolo, who presented the prestigious Lasarow Awards to pro bono attorneys from each division in the Central District of California.

The evening was also a celebration of Judge Lasarow’s 90th birthday, and was attended by Judge Lasarow and his wife. Judge Thomas B. Donovan said a few kind words to wish Judge Lasarow a happy birthday, and Judge Sheri Bluebond led the audience in singing “Happy Birthday” to the judge.

Mediation Program

The Central District of California Bankruptcy Court established its Bankruptcy Mediation Program in 1995 to provide the public with effective and reliable assistance in resolving disputes without the time and expense associated with litigation. With 185 members, the mediation panel consists of attorneys and non-attorney professionals such as accountants, real estate brokers, physicians, and professional mediators.

On November 9, 2012, the U.S. Bankruptcy and District Courts for the Central District of California co-hosted the Fourteenth Annual Appreciation Luncheon to honor Bankruptcy Court mediators and District Court settlement officers for 2011-2012. Both courts recognized their panel members for their continued dedication and generous service in the field of Alternative Dispute Resolution. Over 100 guests attended the event, including Judge Alan M. Ahart, Judge Neil W. Bason, Judge Catherine E. Bauer, Judge Julia W. Brand, and Executive Officer/Clerk of Court Kathleen J. Campbell. Judge Barry Russell, the Central District's Mediation Program Administrator, spoke at the event.

From the program's inception in 1995 through the end of the 2011-2012 term, 4,763 matters were assigned to mediation, 4,318 were concluded, and 2,714 were settled. The settlement rate has remained at a very favorable 63 percent.

Central District Continues To Test Pro Se Case Filing Module

Since 2011, the Central District has been one of three bankruptcy courts in the nation involved in the Administrative Office of the United States Courts’ Pro Se Pathfinder Project, which is developing and testing an e-file module
for self-represented, or pro se, debtors. The module, now named “electronic Self-Representation” (eSR), continues to be tested in preparation for the three test courts – California Central, New Jersey, and New Mexico – to go live in 2013. Once the module has been successfully tested in these three courts, the project can be expanded to additional courts.

The eSR module is designed for use by self-represented debtors to prepare and submit bankruptcy case opening documents (e.g. petition, schedules, matrix) electronically. The module is a bridge between current CM/ECF functionality and Next/Gen CM/ECF functionality and will use, as much as possible, the plain language instructional guidance of the Forms Modernization Subcommittee of the Bankruptcy Rules Committee. The module is designed for use in voluntary chapter 7 cases. In addition, courts may choose to offer it for chapter 13 cases and may include local forms required at case opening. It will be accessible through the Internet, and some courts plan to make the module available through public access terminals.

Once operational, debtors will create a password-protected account, receive a unique identifier, and receive instructional prompts to complete case opening documents by entering data. The module will then present PDF documents with completed information for the debtor’s review. The data and forms created through the module will be captured and stored for future upload into CM/ECF. At that point, the debtor will receive a warning that the pleadings are not yet filed and receive instructions (customizable by court) about how to submit a signature, filing fee, or alternate payment arrangement at the time of filing. Debtors will also receive notice of information and/or schedules that are missing or in error. A major goal of this project is to reduce the workload of the Clerk’s Office by providing self-represented debtors with a user-friendly, web-based application and allowing the electronic submission of bankruptcy petitions and related documents.

Central District Hosts Nation's First Federal Court Power Lunch For Students

On June 8, 2012, the Court hosted the nation’s first Federal Court Power Lunch, a program in which high school students meet judges and lawyers to learn about the law and the legal system. Chief Bankruptcy Judge Peter H. Carroll and Bankruptcy Judges Thomas B. Donovan, Richard M. Neiter, Scott C. Clarkson, Sandra R. Klein, Neil W. Bason, and Julia W. Brand participated in the event. Executive Officer/Clerk of Court Kathleen J. Campbell and many Clerk’s Office staff also attended and helped make the event a success. The lunch was generously sponsored by the Women Lawyers Association of Los Angeles.

Approximately 25 Roosevelt High School students attended the Power Lunch, which was held in the Roybal Federal Building and Courthouse. In addition to the bankruptcy judges who participated, Circuit Judge Jacqueline H. Nguyen, Chief District Judge Audrey B. Collins, District Judges Dolly M. Gee and John A. Kronstadt, Chief Magistrate Judge Suzanne H. Segal and District Clerk of Court Terry Nafisi were enthusiastic participants in the lunch. Los Angeles Superior Court Judge Beverly Reid O’Connell and Los Angeles Superior Court Commissioner Nicole Bershon assisted with and participated in the lunch. A number of attorneys also attended, including Keith Higginbotham, five Assistant United States Attorneys, and four Federal Public Defenders.

After the students received an overview of the Central District and the functions of the different federal courts from Chief Bankruptcy Judge Carroll, Chief District Judge Collins, and Chief Magistrate Judge Segal, they played a fun and instructive game of Legal Jeopardy! The Court hosted another Federal Court Power Lunch on October 5, welcoming approximately 40 cadets from the Los Angeles Police Academy.

Bankruptcy Judges Preside Over Naturalization Ceremonies

Seven bankruptcy judges from the Central District presided over naturalization ceremonies in 2012. Judges Barry Russell, Erithe A. Smith, Meredith A. Jury, Ellen Carroll, Sheri Bluebond, Robert N. Kwan, Scott C. Clarkson, and Sandra R. Klein each led the swearing in of new citizens in ceremonies throughout the year at the Los Angeles Convention Center and Pomona Fairplex.

Judge Barry Russell Annual Scholarship Awards

The 30th Annual Judge Barry Russell Scholarship Awards were presented at the Biltmore Hotel in Los Angeles on September 27, 2012. Every year, each of five ABA-accredited law schools in the Los Angeles area (UCLA, USC, Loyola, Southwestern, and Pepperdine) selects a student who has done outstanding work in the area of Federal Courts and Practice to receive the award. Winners of the award receive a plaque, a signed copy of Judge Russell’s Bankruptcy Evidence Manual, and a $500 check.

Over 200 people attended the luncheon and ceremony, hosted by the Los Angeles chapter of the Federal Bar Association. For the 18th consecutive year, the presentation of the awards was paired with the Annual Supreme Court Review presented by the distinguished constitutional law scholar Erwin Chemerinsky, Founding Dean of the UC Irvine School of Law.

Judge Catherine E. Bauer Speaks At Orangewood Children's Home

On July 10, 2012, Judge Catherine E. Bauer was the “inspirational speaker” at the Orangewood Children’s Home in Orange. The Home’s speaker night is sponsored by the Orangewood PALS, a group of professionals who fight child abuse and neglect in Orange County. Formed in 1996, the Orangewood PALS is an auxiliary of the Orangewood Children’s Foundation.

At the Home, Judge Bauer spoke to a group of approximately 50 children who had fallen into unfortunate circumstances. Many were removed from their homes because of suspected child abuse or neglect. The children ranged in age from four to 17 years old. After the children had correctly guessed Judge Bauer’s occupation, she told them about her journey to the bench, and encouraged them to study hard and stay out of trouble so they could be whatever they wanted to be in life.

Charitable Drives

CACB Cares! School Supply Drive

The Court’s Center of Excellence for Employee Engagement organized a school supply drive that was held at all five divisions during September. CACB Cares! coordinated a district-wide effort to collect school-related supplies for Schools on Wheels, a nonprofit organization that provides tutoring and other educational assistance to homeless children. The Central District collected over 40 large boxes of school supplies, which were donated to Schools on Wheels during the last week of September.

Book Fair Held in Santa Ana Division

The Santa Ana Division held a book fair in the lobby of the Ronald Reagan Federal Building and U.S. Courthouse on October 4, 2012. Among the books for sale were children’s books, cookbooks, bestsellers, and general interest books. A percentage of proceeds from the book fair benefited the Ziggurat Child Development Center in the Chet Holifield Federal Building in Laguna Niguel.

Central District Responds to Hurricane Sandy

In the wake of Hurricane Sandy, the massive storm that hit the eastern seaboard in October, employees in the Central District contributed $4,757 to the American Red Cross’s disaster relief efforts through the Combined Federal Campaign (CFC). Court staff reached out to members of our court family who were affected by the storm with a video card entitled “California Central Bankruptcy Cares.” Set to the Bruce Springsteen song “We Take Care of Our Own,” the video presented a photo montage of staff holding up signs with heartfelt messages of support. The video card was sent to the clerks of court in New Jersey and the New York courts, and to the chiefs of both the district and bankruptcy divisions at the Administrative Office of the U.S. Courts.

Court Staff Support “Run For Justice"

Public Counsel held its ninth annual “Run for Justice” fund-raising event as part of the Los Angeles Big 5K run/walk on Saturday, March 17, 2012. Building on last year’s participation, nine chambers and Clerk’s Office staff members from the Los Angeles, Santa Ana, and San Fernando Valley Divisions participated in the event. Despite heavy rains, all nine staff members completed the run/walk that started at Dodger Stadium.

Speaking Engagements and Programs

Chief Judge Peter H. Carroll Speaks At "State Of The Circuit/District" Luncheon

On April 5, 2012, Chief Bankruptcy Judge Peter H. Carroll joined Chief Circuit Judge Alex Kozinski, Chief District Judge Audrey B. Collins, and Chief Magistrate Judge Suzanne H. Segal at the Federal Bar Association’s “State of the Circuit/District” luncheon. Each of the four chief judges spoke to a crowd of over 200 judges, attorneys, and law clerks gathered at the Kyoto Grand Hotel in downtown Los Angeles. Chief Judge Carroll reported on the Court’s heavy caseload as the largest bankruptcy court in the nation, welcomed Judges Julia W. Brand and Neil W. Bason to the bench, and discussed development of the new Strategic Plan to prepare the Court to meet the challenges of the next ten years.

CDCBAA Hosts Sixth Annual Review

On January 21, 2012, the Central District Consumer Bankruptcy Attorney Association (CDCBAA) held its “Sixth Annual Review of 2011 9th Circuit Published Decisions and Selected Other Cases on Bankruptcy” at Southwestern Law School. An overflow crowd of over 140 consumer bankruptcy attorneys attended. Together, Judge Sandra R. Klein and Professor M. Jonathan Hayes presented a synopsis of over 50 of the past year’s cases, involving the following topics: attorney sanctions, the automatic stay, chapter 13 issues, chapter 11 issues, discharge, property of the estate, taxes, Supreme Court cases, Ninth Circuit Court of Appeals cases, Ninth Circuit BAP, Ninth Circuit cases, and other circuits’ cases.

ABI Hosts "Bankruptcy Battleground West" With Judges Zurzolo, Neiter, And Clarkson

On March 16, 2012, Judges Vincent P. Zurzolo, Richard M. Neiter, and Scott C. Clarkson participated in the American Bankruptcy Institute’s 20th Annual Bankruptcy Battleground West conference at the Hyatt Regency Century Plaza. Judge Zurzolo took part in the panel discussion “Evidence and Experts in the Challenging World of Valuation,” and Judge Neiter sat on the panel that discussed “Mediation: Topics and Strategies for Efficient Dispute Resolution.” At the conclusion of the program, Judges Zurzolo, Neiter, and Clarkson all took part in “The Great Debate: Stern vs. Marshall—Article I Jurisdiction in an Article III World.”

Eleven Central District Judges Join "Ask The Judges" Dinner Program

On June 4, 2012, practitioners and judges from the Central District of California convened at the Los Angeles Marriott to participate in the annual “Ask the Judges” dinner program, presented by the Los Angeles Bankruptcy Forum in conjunction with Public Counsel. Judge Sheri Bluebond moderated the panel, which was comprised of ten of her colleagues: Chief Judge Peter H. Carroll and Judges Vincent P. Zurzolo, Richard M. Neiter, Robert Kwan, Catherine E. Bauer, Deborah J. Saltzman, Mark S. Wallace, Sandra R. Klein, Julia W. Brand, and Neil W. Bason. The discussion touched on legal issues such as the Bankruptcy Appellate Panel’s decision in In re Friedman, 466 B.R. 471 (B.A.P. 9th Cir. 2012), as well as procedural concerns, including the use of holographic signatures on electronically-filed documents, the proper format for the judge’s copy, and pleadings with embedded graphics.

“Judges’ Night” Dinner Held in Costa Mesa

On June 14, 2012, seven bankruptcy judges from the Central District participated in the Orange County Bankruptcy Forum program “Judges’ Night: Effective Oral Advocacy,” held at the Westin Hotel in Costa Mesa. Judges Erithe A. Smith, Theodor C. Albert, Catherine E. Bauer, Deborah J. Saltzman, Scott C. Clarkson, Mark S. Wallace, and Mark D. Houle all answered a questionnaire about oral advocacy that was distributed to attendees prior to the event. At the program, the judges discussed a variety of topics related to oral advocacy, including how oral argument compares to written argument; tentative rulings and what they mean; preparing a script or outline for oral argument; telephonic appearances; and how judges signal to counsel that they have heard enough.

Judge Vincent P. Zurzolo Participates In Panel Discussion On Reaffirmation Agreements

On February 27, 2012, Judge Vincent P. Zurzolo and attorney Peter Lively participated in the panel discussion “Reaffirmation Agreements: What You Need to Know about the Procedures and Practice after BAPCPA” at the Los Angeles Division. The discussion, moderated by Magdalena Reyes Bordeaux of Public Counsel, explored how the passage of BAPCPA in 2005 has affected reaffirmation agreements. Public Counsel Law Center and the Central District Consumer Bankruptcy Attorney Association co-sponsored the event, which required a two-hour pro bono commitment in order to register, and counted for 1.5 hours of MCLE credit. About 50 attorneys attended.

Judges Albert, Smith, And Wallace Discuss "Chapter 20"

The Orange County Bankruptcy Forum held a brown bag program on the subject of “chapter 20” at the Santa Ana Division on February 23, 2012. The panel included Judge Theodor C. Albert, Judge Erithe A. Smith, and Judge Mark S. Wallace, as well as chapter 13 trustee Amrane Cohen. The panel discussed topics such as: the effect of the 11 U.S.C. § 1328(f)(1) “four year rule” on a chapter 13 plan; the benefit of not getting a discharge in a chapter 13 case when the plan has been confirmed; whether a chapter 13 plan can “strip” a residential lien without a discharge; if courts will follow In re Tran, 431 B.R. 130 (Bankr. N.D. Cal. 2010); under what circumstances a judge might allow a chapter 13 plan “lien strip” without a discharge; if a chapter 7 discharge has been issued and the case is closed, under what circumstances the debtor might re-open the chapter 7 case to vacate the discharge and convert to chapter 13; and, if a chapter 7 discharge has been granted and the case is still open, under what circumstances the debtor might convert to chapter 13 and vacate the chapter 7 discharge.

Judge Maureen A. Tighe Holds Lunchtime Presentation On Self-Represented Parties

On January 9, 2012, Judge Maureen A. Tighe and Assistant U.S. Trustee Jennifer Braun held a lunchtime presentation for attorneys at the Los Angeles Division. “Self-Represented Parties: What Every Consumer Bankruptcy Attorney Should Know” provided background on the Central District’s population of self-represented filers, which now makes up more than one quarter of all pro se bankruptcy litigants in the nation. The presentation also included updates on the Court’s programs for parties without attorneys, and advised attorneys about common legal and ethical issues that involve self-represented debtors.

Chapter 11 Absolute Priority Rule Program Features Judges Ahart, Albert, And Clarkson

On April 17, 2012, Judges Alan M. Ahart, Theodor C. Albert, and Scott C. Clarkson spoke at the Orange County Bar Association Commercial Law & Bankruptcy Section’s program, “How Absolute is the Absolute Priority Rule in Individual Chapter 11 Cases?” The event was held in the City of Orange, California. Attorneys Jeffrey I. Golden of Weiland, Golden, Smiley, Wang Ekvall & Strok, LLP and Debra Grassgreen of Pachulski Stang Ziehl & Jones LLP were also part of the panel, which was moderated by attorney Richard A. Marshack of Marshack Hays LLP. The two-and-a-half hour program was attended by Judges Erithe A. Smith, Catherine E. Bauer, and Mark D. Houle, as well as approximately 92 attorneys and law clerks. Handouts included a flowchart and diagram from Judge Ahart that served as a visual aid to the “narrow” view and “broad” view, as well as his article, “The Absolute Abolition of the Absolute Priority Rule in Individual Chapter 11 Cases,” published in the California Bankruptcy Journal. The materials also included Judge Clarkson’s Opinion in In re Friedman, 466 B.R. 471 (B.A.P. 9th Cir. 2012), and Judge Albert’s Amended Order Denying Confirmation of Debtor’s First Amended Chapter 11 Plan of Reorganization in In re Kamell, 451 B.R. 505 (Bankr. C.D. Cal. 2011). At the end of the program, the judges took questions from the audience.

Judge Mark S. Wallace Joins Section 523 Panel At Chapman University

On April 21, 2012, the Orange County Bankruptcy Forum held a seminar on § 523 of Title 11 at Chapman University School of Law. The panel, comprised of Judge Mark S. Wallace and attorneys William M. Burd, Dan E. Chambers, Robert P. Goe, D. Edward Hays, and Sean O’Keefe, discussed the dischargeability of the following types of debt: domestic support obligations; debts for death or personal injury caused by operation of a vehicle while the debtor was intoxicated; fines, penalties, or forfeitures owed to a governmental unit; orders of restitution; fees and assessments for condo or homeowners association dues that come due post-petition; debts obtained by false pretenses, false representation, or fraud; debts for fraud or defalcation, embezzlement, or larceny; debts for willful and malicious injury to another entity or its property; taxes and debts incurred to pay taxes; and debts neither listed nor scheduled in time to permit timely filing of a claim, or a request for a determination of dischargeability. The panel also discussed pre-trial and trial practice in § 523 nondischargeability adversary proceedings.

Judge Catherine E. Bauer Holds Brown Bag On 522(f) Motions

On October 10, 2012, approximately 40 members of the legal community gathered in Courtroom 5D in the Ronald Reagan Federal Building and U.S. Courthouse in Santa Ana. Attorneys and their staff attended as part of the Orange County Bankruptcy Forum Brown Bag Program. Judge Catherine E. Bauer and Christine Fitzgerald, law clerk to Judge Scott C. Clarkson, presented a program entitled “How to Get Your 522(f) Motions the First Time.” The program highlighted the most common reasons 522(f) motions were denied and identified when it was appropriate to bring a 522(f) motion. The program was also open to questions from attendees.

Judges Saltzman And Clarkson Participate On Chapter 11 Panel at Chapman University

On October 20, 2012, Judges Deborah J. Saltzman and Scott C. Clarkson participated in a panel discussion titled “It’s All in the Numbers: A Seminar Regarding Some of the Major Financial Issues that Arise in Chapter 11 Cases.” The judges were joined by attorneys Eric J. Fromme of Rutan & Tucker, LLP and Todd C. Ringstad of Ringstad & Sanders, LLP, as well as Adam Meislik, Senior Managing Director of GlassRatner Advisory & Capital Group, LLC and Brian S. Weiss, founder and Managing Director of BSW & Associates. The speakers discussed cash collateral budgets, monthly operating reports, and methods for valuing assets. The panel explained several practical concepts to the audience, including how a debtor’s financial data should be reported to the Court, how attorneys and their clients should interpret financial data, and what types of questions should be posed at a hearing regarding a debtor’s budget. The event was hosted by the Orange County Bankruptcy Forum and took place at Chapman University School of Law.

Judges Russell And Bauer Take Part In Ninth Annual Bankruptcy Ethics Symposium

On December 14, 2012, Judges Barry Russell and Catherine E. Bauer took part in the Los Angeles Federal Bar Association’s Ninth Annual Bankruptcy Ethics Symposium, held at the United States Trustee’s 341(a) meeting room in downtown Los Angeles. The judges joined Assistant U.S. Trustee Jill Sturtevant and a number of experienced attorneys to discuss ethical issues that arise in bankruptcy. Discussions included “Inducing Attorney Conduct,” “Marketing a Bankruptcy Practice (Effectively and Ethically): The Lawyer, Her Technology, and Techno-Ethical Issues,” and “An Ethics Conversation with Judge Russell.”