Opinion
BK No. 89-11051.
November 3, 2004
ORDERS: (1) GRANTING MOTION TO STRIKE AND (2) IMPOSING ADDITIONAL SANCTION
Before the Court is the Motion of Harold Chorney "to clarify the class action award from the lawsuit against Christy's Public Auction and require the Chapter 7 Trustee, Jason Monzack, Esq., to provide a complete and detailed accounting of estate assets." Chorney has also served the Trustee with a "Second Request for Admissions." In response, the Trustee has filed two motions to strike — one seeking to strike the motion (Doc. #794), and the other seeking to strike the request for admissions (Doc. #870). Because Chorney lacks standing to bring the instant motions, and because much of the relief he requests has been previously denied here and on appeal all the way to the United States Supreme Court, the Trustee's Motions to Strike are GRANTED and Chorney's motion and request for admissions are stricken.
DISCUSSION
Chorney's hyperactivity and ludicrous conduct throughout this case is marked by his incessant acts of bad faith and abuse of the system from the inception of this bankruptcy in 1989. Very early on, it was determined that "Chorney has deliberately and continuously acted in bad faith to obstruct and to hinder the efficient administration of the estate, which action has been very damaging, expense-wise, to the estate and its creditors." In re Cumberland Investment Corp., BK No. 89-11051, slip op. at 1-2 (Bankr. D.R.I. July 3, 1991). As a result, Chorney was prohibited from intervening or "otherwise participat[ing] in proceedings relating to sales or other disposition of estate assets." Id. In addition, in 1992 a civil contempt sanction was imposed in the amount in of $200,000 against Chorney on account of his bad faith and abuse of the bankruptcy process. In re Cumberland Investment Corp., BK No. 89-11051, slip op. at 1-2 (Bankr. D.R.I. July 2, 1992), aff'd, 7 F.3d 218 (1st Cir. 1993), cert denied, 510 U.S. 1200 (1994). This sanction was calculated to reimburse the estate for just a part of the unnecessary expense occasioned by Chorney's aberrant behavior. Id. at 4. Obviously undeterred by this sanction, Chorney continues, some twelve years later, to file frivolous pleadings which add expense and delay in the closing of this 1989 case.
By filing the instant motion and requests for admissions, Chorney has directly violated the 1991 injunction. Additionally, in January 2002, Chorney filed a similar request seeking an accounting of assets, which was denied on March 14, 2002, based on lack of standing and the 1991 injunction order. See Doc. #738. That decision was sustained on appeal. See In re Cumberland Inv. Corp., 2003 WL 214357 (1st Cir.), cert. denied, 123 S. Ct. 579 (2003). Finally, in an effort to leave no stone unturned, I asked the United States Trustee to review the Trustee's Accounting to date to determine whether any of Chorney's allegations have merit. The United States Trustee responded in late August 2004 stating that she was satisfied with the Trustee's Accounting. See Doc. #899.
Accordingly, because these issues have been long ago decided against Mr. Chorney, because he lacks standing, and because he is enjoined from participating in this case regarding the disposition of assets, the Trustee's request to strike the instant motion and request for admissions are GRANTED.
Also, because the instant filings are frivolous and are hindering the Trustee in performing his duty to conclude this case, it is further ordered that, effective immediately, the Clerk of Court shall decline to accept any filings from Harold Chorney, unless such filing has first been presented to Chambers and is specifically authorized by the Court for filing. See 11 U.S.C. § 105(a); see also, Mayfield v. Collins, 918 F.2d 560 (5th Cir. 1990).
I considered imposing additional monetary sanctions, however, the $200,000 contempt sanction remains unpaid and appears to have little deterrent effect on Chorney.