Professional Documents
Culture Documents
MARK A. ADAMS,
Appellant,
Appellees.
/
ORDER
This cause comes before the Court on Appellant Mark Adams’ (“Adams”) appeal
of a Default Final Judgment (Dkt. 1-2) entered against him as the debtor in a bankruptcy
adversary proceeding by the United States Bankruptcy Court for the Middle District of
Florida (“the bankruptcy court”) in Case No. 8:06-ap-185-PMG. (Dkt. 1-2.) Adams also
appeals an Order entered in the main Chapter 7 bankruptcy case, Case No. 8:05-bk-
29501-PMG, revoking his discharge based on the Default Final Judgment. (Dkt. 9-22.)
The Appellee Creditors (collectively “Appellees”) are Corporate Sports Marketing Group,
Richardson (“Richardson”), the law firm of Battaglia, Ross, Dicus & Wein, P.A.
(“BRDW”), and Timothy W. Weber (“Weber”). Adams filed an initial brief (Dkt. 18)
and Appellees filed an answer brief (Dkt. 23). Adams failed to file a timely reply brief
after being granted three extensions of time to do so. (Dkts. 26, 28, 30.) Nonetheless,
this appeal can be resolved without need for a reply brief from Adams. The full record
and supplemental record of the bankruptcy court proceedings have also been filed with
the Court. (Dkts. 1, 2, 9, 10, 11, 21, 22.) The Court has jurisdiction to hear this appeal of
Having carefully considered all of the submissions, the Court finds that the
judgment and order of the bankruptcy court are due to be affirmed. The answer brief of
Appellees is thorough, well-reasoned, and amply supported by the record and, thus,
PROCEDURAL HISTORY
Adams filed a voluntary Chapter 7 petition in the bankruptcy court on October 14,
2005. A notice of commencement was sent to creditors scheduling a Section 341 hearing
for December 13, 2005, and setting the deadline for objections to discharge and
dischargeability for February 6, 2006. (Dkt. 9-8.) Adams did not timely file his
schedules or statement of financial affairs and did not pay the applicable filing fee, which
resulted in a notice of deficiency being issued by the bankruptcy court. (Dkt. 21-1.) In
response, Adams moved to extend the time to accomplish these acts, which the
bankruptcy court granted without a hearing. (Dkts. 21-2, 21-3, 21-4.) Adams’ Section
341 Meeting of Creditors was continued by the trustee to January 17, 2006. (Dkt. 2-2, at
2.) Counsel for Appellees attended the Section 341 Meeting of Creditors on December
13, 2005, and February 6, 2006. (Dkt. 9-9.) On the latter date, the trustee requested that
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Adams produce additional documents concerning his assets, including documents
concerning pre-petition transfers of assets by Adams and involving his wife and
light of the delayed filing of the schedules and statement of financial affairs, the
continuation of the Section 341 meeting, the request for additional documentation from
Adams, and the inability of Appellees to fully formulate a complete objection within the
time provided. (Dkt. 9-9.)1 On February 6, 2006, Appellees also timely filed an
1
At this point, it should be noted that the history of Appellees’ dispute with
Adams is quite lengthy and is characterized by seven years of court proceedings, resulting
in sanctions judgments against Adams, criminal contempt proceedings against Adams for
refusing to cooperate with discovery in aid of execution to collect those sanctions
judgments, Adams’ permanent disbarment from the practice of law by The Florida
Supreme Court, Adams’ bankruptcy, and ultimately, the revocation of Adams’ discharge
by the bankruptcy court. (See generally, Dkt. 11-13.) As found by The Florida Bar
referee presiding over Adams’ disbarment, “[t]he unrebutted evidence proves beyond any
reasonable doubt that the Respondent [Adams] engaged in deliberate conduct resulting in
financial damages of over $150,000 to Attorney Timothy Weber and his law firm as well
as additional financial damages to Mr. Weber’s former clients in the underlying
litigation.” (See Dkt. 11-13 at 21; see also id. at 24 (finding that“the misconduct has
caused significant financial and emotional damage to other members of The Florida Bar
and the Respondent’s clients and adversaries.”).
This conduct included, among other things, knowing violation of court orders
and rules to gain an improper benefit or cause serious interference with a legal
proceeding; engaging in protracted intentional conduct involving dishonesty, fraud,
deceit or misrepresentation to opposing counsel and the court, including intentionally
making numerous false statements of fact to the court with the intent to deceive the
court; knowingly violating court orders; knowingly communicating with represented
persons; knowingly asserting frivolous arguments; and purposefully obstructing
access to evidence. (See generally, Dkt. 11-13.) In addition, counsel for Appellees, and
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Objection to Discharge and Dischargeability. (Dkt. 21-9.) The bankruptcy court noted
technical deficiencies with the objection and granted an extension up to February 27,
2006 to cure them. (Dkt. 21-10.) Meanwhile, on February 17, 2006, the court, without a
hearing, granted Appellees’ Motion to Extend the Time to Object to Discharge and
Dischargeability, extending the period to April 7, 2006. (Dkt. 9-10.) In reliance on the
bankruptcy court’s order, Appellees withdrew “without prejudice” their previously filed
On April 7, 2006, Appellees timely filed the adversary proceeding against Adams,
his wife Lisa, and the Law Offices of Mark A. Adams, P.A., objecting to Adams’
discharge (Count I), objecting to the discharge of the sanctions judgments against Adams
and in favor of CSM, King, and Martins (Count II); objecting to the dischargeability of
fraudulent transfer claims against Adams (Count III); objecting to the dischargeability of
against Adams possessed by Appellees (Count IV); and seeking to set aside fraudulent
transfers of assets to Lisa Adams and Law Office of Mark A. Adams, P.A. (Count V).
(Dkt. 22-1.) Appellees relied upon 11 U.S.C. § 727(a)(2), (3), (4), (5), (6) and (7) to
his law firm, have been the target of frivolous lawsuits, criminal complaints, bar
grievances, and a massive amount of false and defamatory statements spread on the
internet by the Debtor. (Dkt. 22-1.)
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Appellees alleged, inter alia, that CSM, King, and Martins obtained state court
judgments against Adams and his former professional association, Mark A. Adams, P.A.,
that ordered each to provide discovery in aid of execution. (Dkt. 22-2 at 3.) Appellees
asserted that Adams and his professional association refused to comply with these court
orders during the two years immediately preceding the filing of Adams’s bankruptcy
petition on October 14, 2005. (Dkt. 22-2 at 3.) During this time, Adams allegedly
dissolved Mark A. Adams, P.A., and transferred substantially all of its assets to himself
and his wife as tenants by the entireties and then subsequently transferred those assets to
Law Office of Mark A. Adams, P.A.. (Dkt. 22-2 at 3.) Appellees also asserted that this
transfer placed all assets of Mark A. Adams, P.A., out of the reach of CSM, King and
Martins, the holders of perfected judgment liens, and rendered Adams’s stock in Mark A.
Appellees further alleged that the state court judgments were based on the
Adams’ willful and malicious actions towards CSM, King and Martins. (Dkt. 22-1
at 4.) Moreover, Appellees urged that in retaliation for obtaining those judgments,
Adams willfully and maliciously filed a frivolous lawsuit against CSM and King and then
subsequently amended to add Weber, BRDW, and Richardson. (Dkt. 22-1 at 4.) This
lawsuit was dismissed with prejudice and Adams appealed. (Dkt. 22-1 at 4.) Appellees
continue that pattern of conduct directed towards Appellees. (Dkt. 22-1 at 4.) Appellees
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additionally alleged that Adams willfully, maliciously, and repeatedly defamed them by
posting false internet articles accusing Appellees of bribing judges and committing other
unlawful or unethical actions. (Dkt. 22-1 at 4. ) Appellees maintained that Adams made
false and malicious complaints of illegal and unethical conduct about Weber and BRDW
to the FBI, FDLE, The Florida Bar, and others for the purpose of vexing and harassing
Weber and BRDW. (Dkt. 22-1 at 6.) These statements also allegedly accuse CSM, King,
Martins, and Richardson of participating in the corruption and illegal activity. (Dkt. 22-1
at 6.)
home but, by all accounts, Adams actively evaded service of process. (Dkt. 10-4 at 2;
Dkts. 10-5 - 10-15.) Adams was ultimately served on August 18, 2006, at the courthouse.
asserting that service of process was untimely under Fed.R.Civ.P. 4(m) and
Fed.R.Bank.P. 7004(e). (Dkt. 10-3.) Appellees filed their Motion to Substitute Party,
Issue Alias Summonses, and Extend Time Period for Service of Process in which
Appellees requested that the Court extend the time periods in Fed.R.Civ.P. 4(m) and
Fed.R.Bank.P. 7004(e) to August 18, 2006, and to deem Adams validly served as of that
date. (Dkt. 10-4.) In the motion, Appellees detailed Adams’ repeated efforts to evade
2
Appellees assert that personal service, rather than service by mail, was
attempted because Adams continuously claimed in court that he did not receive matters
by mail or received them in an untimely fashion. (Dkt. 11-1 at 23.)
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service of process, attaching numerous affidavits of process servers and other who
attempted to serve Adams. (Dkts. 10-7 - 10-15.) On December 5, 2006, the bankruptcy
Proceeding3 and Appellees Motion to Substitute Party, Issue Alias Summonses, and
Following the hearing, the bankruptcy court entered an Order extending the time
period for service of process and deeming Adams timely served; finding that Lisa Adams
was properly served; rejecting Adams’ claim that the court was required to conduct a
hearing on Appellees’ motion to extend the time under Rule 4004(b), Federal Rules of
professional association and finding that it was validly served. (Dkt. 11-2.) The court
was required to file and serve an answer within ten days, but Adams filed a motion to
enlarge the time to answer, (Dkt. 11-25), and a motion for an extension of time to perfect
an interlocutory appeal from the bankruptcy court’s order. (Dkt. 22-2.) The court
granted Adams’ motion to extend the time to file a notice of appeal or motion for leave to
appeal. (Dkt. 22-4.) On April 6, 2007, the court also granted Adams’ request for an
3
Adams amended his motion before the hearing in order to focus on the
bankruptcy court’s decision to extend the time for Appellees to object to
discharge and dischargeability, the 120 day requirement of Rule 4(m), and the
validity of service on Lisa Adams. (Dkt. 10-25.)
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enlargement of the time to answer for 20 additional days. (Dkt. 22-3.) Adams still failed
to plead within the time allowed by the Court. In addition, Adams never filed an appeal
Instead, on April 30, 2007, Adams filed a successive4 Motion to Dismiss for Lack
Adversary Proceeding. (Dkt. 11-6.) Adams track record makes clear that this filing was
made solely for the purpose of delaying the proceedings.5 On September 28, 2007, the
process, specifically referencing its prior ruling on the same point. (Dkt. 11-9.)
Affording Adams every benefit possible, he was still required to answer within 10 days of
the September 28, 2007 Order. See Fed.R.Bank.P. 7012(a). Adams nevertheless failed to
plead within the time permitted by the Rules. Instead, he filed another motion to extend
the time to file a notice of appeal or motion for leave to appeal the Order denying his
motion to dismiss. (Dkt. 22-5.) Appellees opposed Adams’ motion to extend the time to
4
Adams moved to dismiss on the same grounds rejected by the March 19,
2007 Order, in an effort to generate a second opportunity to appeal the denial of the
motion to dismiss that Adams failed to timely appeal previously, despite being afforded
extra time by the bankruptcy court.
5
As with the deadlines for filing the initial brief and the reply brief in the instant
cast, Adams sought to extend the deadline for nearly every matter in the adversary
proceeding and the main bankruptcy case.
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file a notice of appeal or motion for leave to appeal. (Dkt. 22-6.) Appellees also moved
the bankruptcy court for a default for Adams’s willful failure to plead. (Dkt. 11-10.)
On January 17, 2008, after a hearing on the parties’ motions, the bankruptcy court
entered an Order granting Adams’ motion to extend the time to file a notice of appeal and
motion for leave to appeal. (Dkt. 22-7.) The court also granted in part and denied in part
Adams’s motion to enlarge the time to file a response to the Complaint. (Dkt. 22-7.) In
so doing, the court sternly advised that “Adams must file a written Answer to the
Plaintiffs’ Complaint within 20 days from the date of this Order.” (Dkt. 22-7.) The court
denied Appellees’ motion to default Adams “without prejudice to the Plaintiffs’ right to
renew the Motion in the event that the Debtor fails to file an Answer to the Complaint
Once again, Adams did not timely file a notice of appeal or motion for leave to
appeal the September 28, 2007 Order denying his second, successive motion to dismiss.
He also did not timely file an answer as directed by the court. Rather, Adams filed a
number of documents on behalf of Lisa Adams and Law Office of Mark A. Adams, P.A.,
and yet another “Motion to Enlarge Time to File Motion for Leave to Appeal or File
Notice of Appeal of Order on Debtor’s Motion to Enlarge Time to File Motion for Leave
to Appeal or File Notice of Appeal and Debtor’s Motion to Enlarge Time to File
Appellees renewed their motion for default based on Adams’s failure to plead,
pointing out that Adams had at least four opportunities to file and serve an answer and
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deliberately chose not to do so. The bankruptcy court scheduled a hearing on the renewed
motion for default. (Dkt. 22-14.) As of the date of the hearing, Adams still had not
served an answer to the Complaint. Consequently, the bankruptcy court entered its Order
Granting Motion for Default Judgment. (Dkt. 1-4.) Thereafter, the clerk of the
bankruptcy court entered a default against Adams, (Dkt. 1-3), and the court entered its
Default Final Judgment. (Dkt. 1-2.) The court subsequently entered an Order in the main
bankruptcy case revoking Adams’s discharge and finding that Adams’ obligations to
Notice of Appeal from both orders in the adversary proceeding. (Dkt. 1-1.)
DISCUSSION
Ground I
that the bankruptcy court erred in granting Appellees’ motion to extend the time to object
to his discharge and to object to the dischargeability of the his obligations to the
Appellees. Adams argues that it was a denial of due process for the court to grant the
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motion without a hearing and without taking evidence. He first argues that Rule 4004(b)
of the Federal Rules of Bankruptcy Procedure required the bankruptcy court to conduct a
hearing on Appellees’ motion, relying on the phrase “after hearing on notice” contained
in the rule.6 However, the phrase “after notice and a hearing” or any similar phrase7 is
In this title
11 U.S.C. § 102(1). The 1978 Revision Notes explain that “a hearing will not be
6
It is undisputed that Adams received notice of Appellees’ motion.
7
Rule 4004(b)’s provision “after hearing on notice” has been construed to be a
phrase similar to “after notice and a hearing,” thus, making Section 102 applicable to its
procedures. See In re Amezaga, 192 B.R. 37, 40 (Bankr. D. P.R. 1996.)
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The 1978 Revision Notes also indicate that the phrase “such opportunity for a
to dispense with a hearing. See In re: Grunau, 376 B.R. 322, 330 (M.D. Fla. 2007)
(recognizing that Section 102 allows the Bankruptcy Court to act without a hearing if one
is not requested by a party in interest or there is not enough time to conduct the hearing).
clearly vested with broad discretion. See id. (reviewing decision of whether to conduct a
hearing for abuse of discretion); see also Colonial Daytona Ltd. Partnership v. American
Sav. of Florida, 152 B.R. 996, 998 (M.D. Fla. 1993) (holding that discretionary rulings of
the bankruptcy court are reviewed for abuse of discretion). Thus, Adams must show that
the bankruptcy court abused its discretion in failing to conduct a hearing before granting
Appellees an extension of time. Adams cannot meet his burden inasmuch as he: (1)
failed to object after receiving notice of the request; (2)failed to request a hearing on the
motion; and (3) failed to timely seek a rehearing or reconsideration of the order granting
the extension. The record before this Court shows that Adams made no objection to the
motion for extension of time before it was granted. The motion was filed and served on
Adams on February 2, 2006. The bankruptcy court delayed until February 17, 2006
before entering an order granting the requested extension. Adams made no effort to
request a hearing on the motion during this time. It is abundantly clear that Adams had
notice of the motion and an opportunity to be heard, which is all that was required by
Rule 4004(b).
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Then, once the bankruptcy court entered an Order granting the extension to
Appellees, Adams failed to file anything stating that he objected to the motion or took
issue with the granting of it without a hearing until months later when Adams raised the
issue in the adversary proceeding. The court could have afforded Adams a hearing or
reconsidered the motion after considering any objection by Adams on the merits. See In
re: Wade, 948 F.2d 1122, 1125 (9th Cir. 1991) (finding initial failure to grant a hearing
within the Court’s discretion to grant the motion without a hearing where Adams did not
object or request a hearing and did not timely complain of the absence of a hearing.
effort, if any, to address the merits of the motion for extension.8 The motion for extension
was based upon the fact that Adams’ Section 341 hearing was continued to allow the
trustee and Appellees time to investigate fraudulent transfers made by Adams and his
former professional association immediately prior to the filing of bankruptcy. The trustee
continued the initial Section 341 meeting of creditors to allow additional questioning of
Adams concerning these transfers and, at the continued Section 341 hearing, the trustee
asked Adams to produce documents concerning these fraudulent transfers because they
were not available to Appellees at the time objections to discharge and dischargeability
8
It should be noted that Adams has never attempted to show that the facts alleged
in the motion for extension were untrue, even after filing multiple motions in the
bankruptcy court concerning the Order extending the deadline.
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were due. Adams never disputed these facts in the bankruptcy court and does not do so
here.
documentation of the pre-petition fraudulent transfers was sufficient cause to extend the
deadline. See In re: Datson, 197 B.R. 1 (D. Me. 1996) (recognizing that an extension of
time under Rule 4004(b) is the proper remedy where the meeting of creditors has been
rescheduled or delayed); In re: Amezega, 192 B.R. at 41 (holding that requests for
extension under Rule 4004(b) should be granted liberally, particularly where the need for
discovery is the basis of the request). Such extensions of time are necessary to prevent ad
debtor from “playing fast and loose with their assets or with the reality of their affairs.”
In re: Amezega, 192 B.R. at 41 (quoting In re: Tully, 818 F.2d 106, 110 (1st Cir. 1987)).
Ground II
process within the 120-day time limit and that the bankruptcy court was, therefore,
required to dismiss the complaint absent a showing of good cause. Pursuant to Federal
Rule of Civil Procedure 4(m), if a defendant is not served within 120 days, the court may
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extend the time for an appropriate period upon a showing of good cause. However, the
bankruptcy court is vested with wide discretion to consider other factors that would
warrant an extension of the time for service, even when a showing of good cause is not
made. See Hornekamp v. Van Winkle and Co., Inc., 402 F.3d 1129, 1132 (11th Cir.
2005). For instance, a trial court may look to whether time limitations would bar the
action from being re-filed, whether the defendant is evading attempted service, or whether
the defendant is concealing defects in service. Id. (citing to Fed.R.Civ.P. 4(m) Advisory
Committee Note, 1993 Amendments). Here, the bankruptcy court properly exercised its
The court noted that Appellees had made a number of attempts at personal service and
presented evidence that Adams was evading service of process. The court faulted
Appellees for failing to serve Adams by U.S. Mail. Appellees explained to the court that
they did not utilize service by U.S. Mail because Adams chronically complained about
receipt of documents in the mail, but the court determined that Appellees did not show
good cause for their failure to effect service on debtor within 120 days. (Adversary
Proceeding, Dkt. 23 at 8.) However, relying on Hornekamp, the court noted that
Appellees would be time-barred from re-filing should the action be dismissed, and that
they encountered “unusual difficulties” in their efforts to effect personal service on the
Debtor. (Id. at 10–11.) The court determined that the Adams acknowledged that he had
been personally served on August 18, 2006, and that a short extension of 13 days would
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While Adams focuses on the absence of good cause, he fails to address the issue of
whether the bankruptcy court abused its discretion in granting a 13-day extension under
these circumstances. The court was required to consider factors other than good cause.
Where a trial court finds that a plaintiff failed to show good cause for failing to serve
process within the 120-day period, the court still must consider whether any other
476 F. 3d 1277, 1282 (11th Cir. 2007). The Lepone-Dempsy court held that the district
court abused its discretion for not at least considering whether the plaintiff’s claim would
be time-barred absent a permissive extension. Id. As the bankruptcy court noted in its
Order, Appellees may have been time-barred from re-filing Counts I through IV of the
Complaint if it were to dismiss the complaint, personal service on Adams was difficult,
and the 13-day extension that was required was minimal. (Adversary Proceeding, Dkt. 23
at 10–11.) The court, after considering good cause, weighed these other factors as
required and determined that a brief extension was appropriate. (Id. at 12.) Adams has
not shown an abuse of discretion in the bankruptcy court’s extension of time and
Ground III
16
Relying on Rule 7055-2, Local Rules for the Bankruptcy Court of the Middle
District of Florida, Adams argues that a default judgment was improper in the absence of
an affidavit in support of the allegations set forth in the complaint. However, Rule 7055-
2 must be read in conjunction with Rule 55, Federal Rules of Civil Procedure, which is
Procedure. Rule 55 provides two situations where the entry of a default is appropriate.
Rule 55(b)(1) provides for entry of a default judgment by the clerk if the plaintiff’s claim
is for a sum certain, the plaintiff submits an affidavit showing the amount due, and the
defendant was defaulted for not appearing. Rule 55(b)(2), on the other hand, provides for
entry of a default judgment by the Court “in all other cases.” Under Rule 55(b)(20, there
is no requirement of an affidavit.
Rule 7055-2, by its very terms, applies to situations “[w]hen a party seeks a default
where the defendant is defaulted “for not appearing.” It is inapplicable where, as here,
Adams did respond after being served with a complaint, but is subject to being defaulted
for other reasons. The default judgment entered in the instant case was entered by the
court as a result of Adams’ willful refusal to plead after being ordered to do so twice.
Nothing in Federal Rule of Civil Procedure 55 or Rule 7055-2 of the Local Rules for the
Bankruptcy Court of the Middle District of Florida required the bankruptcy court to do
anything more on the counts against Adams other than to revoke Adams’s discharge and
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find that Adams’s obligations to Appellees were non-dischargeable. Adams chose not to
contest the allegations supporting these claims and there was no need to submit an
Ground IV
After Adams attempted to make this argument in the bankruptcy court, Appellees
brought to the court’s attention that Adams lacked the authority to do so. At that time,
Adams claimed that he was not actually disbarred because the judgment of the Florida
Supreme Court was not personally signed by at least four judges of that court. However,
Adams acknowledged that he was not prepared to test that theory and would not be
asserting these parties’ rights anymore. Despite this acknowledgment, Adams now asks
this Court to reverse multiple orders involving these parties. None of these orders and
judgments at issue were ever appealed by Lisa Adams or Law Offices of Mark A. Adams,
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ACCORDINGLY, it is ORDERED AND ADJUDGED:
1. The Default Final Judgment (Dkt. 1-2) entered against Adams as the debtor in a
2. The Order entered in the main Chapter 7 bankruptcy case, Case No. 8:05-bk-
29501-PMG (Dkt. 9-22), revoking Adams’ discharge based on the Default Final
s/Richard A. Lazzara
RICHARD A. LAZZARA
UNITED STATES DISTRICT JUDGE
COPIES FURNISHED TO:
Pro se parties
Counsel of Record
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