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In re Chaban

United States District Court, E.D. Michigan, Southern Division

June 13, 2017

IN THE MATTER OF MARK CHABAN, Debtor-Appellant.

         HONORABLE STEPHEN J. MURPHY, III

          OPINION AND ORDER AFFIRMING THE BANKRUPTCY COURT'S DECISION AND REQUIRING DEBTOR-APPELLANT TO SHOW CAUSE WHY HE SHOULD NOT BE SANCTIONED UNDER FRBP 8020

          STEPHEN J. MURPHY, III United States District Judge

         Debtor-Appellant Mark Chaban yet again appeals a decision of the United States Bankruptcy Court for the Eastern District of Michigan.[1] The Court has jurisdiction to hear the appeal under 28 U.S.C. § 158(a). The Court will affirm the bankruptcy court's decision.

         BACKGROUND

         The instant dispute traces back to two state trial court sanctions judgments issued against Chaban. See ECF 8, PgID 76-82, 140-43; see also Chaban v. Rathore, No. 308326, 2013 WL 6124250 (Mich. Ct. App. Nov. 21, 2013) (Michigan Court of Appeals opinion upholding sanctions order). Chaban filed a personal Chapter 7 bankruptcy petition, and creditor Fred Freeman filed an adversary proceeding to dispute the dischargeability of one of the judgments. See Case No. 14-bk-05126. Bankruptcy Judge Walter Shapero ruled that the debt was non-dischargeable under 11 U.S.C. § 523(a)(6), ECF 4, PgID 49-50. Freeman and another creditor, Bob Woodward, attempted to file Proofs of Claim against the bankruptcy estate. Chaban objected to the claims as incomplete, and Judge Shapero held a hearing, which included the following exchange:

MR. FREEMAN: [M]ay I be granted time to file an -- an amended claim since I did file the judgment with it at that time. But it's up to the Court what the Court wants to do obviously. But I'd ask for time to amend. I did file something because there's a claim.
THE COURT: Yes, that's true. But that's under the ECF procedures you filled out something, but that's not the proof of claim.
MR. FREEMAN: Very well. I'd ask the Court for time to allow me to do it properly.
THE COURT: I'm going to sustain the objection to the claim. If you -- if you want to file something else -- MR. FREEMAN: I do.
THE COURT: Subject to any further objection Mr. Chaban might assert to what you file, that's -- and then we'll deal with that at that time.
MR. FREEMAN: I understand.
THE COURT: And then I'll give you how much time do you want to do that?
MR. FREEMAN: I would just need seven days.
THE COURT: All right.
* * *
MR. HILL [representing Woodward]: . . . I'm asking the Court for some additional time, seven ...

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