In re Jacobs

In re Jacobs

Opinion

MEMORANDUM OPINION REGARDING DEBTOR'S MOTION FOR RELIEF FROM A JUDGMENT OR ORDER

THIS MATTER is before the Court on the [Debtor's] Motion for Relief from a Judgment or Order ("Rule 60(b) Motion"—Doc. 176) and Memorandum in Support of Debtor's Rule 60(b) Motion for Relief from a Judgment or Order (Doc. 177). DLJ Mortgage Capital, Inc. ("DLJ Mortgage") opposes the Rule 60(b) Motion. See Doc. 187.¹ Debtor seeks relief from the Court's Memorandum Opinion (Doc. 159) and Order Granting in rem Stay Relief Under 11 U.S.C. § 362(d)(4) ("Stay Relief Order"—Doc. 160) under Fed.R.Civ.P. 60(b)(1) and Fed.R.Civ.P. 60(b)(6). In support of his Rule 60(b) Motion, Debtor filed an Exhibit List for Rule 60(b) Motion with thirty-one exhibits attached (Doc. 178), an Affidavit of Fact by Michael Jacques Jacobs ("Jacobs Affidavit"—Doc. 180), an Affidavit of Fact by Ruby Handler Jacobs ("Handler Affidavit"—Doc. 181), and an Exhibit List for Rule 60(b) Motion Handler Jacobs Affidavit with ten exhibits attached (Doc. 179).

Debtor argues that [*2]  the Court should grant relief from the Stay Relief Order under Fed.R.Civ.P. 60(b)(1) based on mistake, inadvertence, surprise, and excusable neglect, and under Fed.R.Civ.P. 60(b)(6) based on exceptional circumstances. For the reasons explained below, the Court will deny the Rule 60(b) Motion.

I. PROCEDURAL BACKGROUND

The Debtor filed this chapter 11 bankruptcy case on November 19, 2019. On April 2, 2020, DLJ Mortgage filed a Motion for Relief from the Automatic Stay and for the Abandonment of Property; Motion for in rem Relief Pursuant to 362(d)(4) by DLJ Mortgage Capital, Inc. ("Stay Relief Motion"). Doc. 27. On November 25, 2020, Debtor's then bankruptcy counsel, Jay Hume, filed a Motion for Withdrawal of Counsel. Doc. 101. On December 10, 2020, Debtor filed a Response to the Motion for Withdrawal of Counsel. Doc. 106. In the Response, Debtor states: "The parties [Debtor and Mr. Hume] have a year history of working together successfully and amicably on both the Bankruptcy Case and the adversary." Id.

Several years before Debtor commenced his chapter 11 case, DLJ Mortgage filed a complaint for in rem foreclosure of Debtor's property located at 800 Calle Divina (the "Property") in the Second Judicial District Court, State of New Mexico, [*3]  County of Bernalillo, styled DLJ Mortgage Capital, Inc. v. Ruby Handler Jacobs a/k/a Ruby Jacobs, Michael Jacobs, et al., Case No. D-2020-CV-2012-09237 (the "State Court Action") and later amended its complaint on October 24, 2014.² Following a trial on the merits in the State Court Action, the state court entered detailed Findings of Fact and Conclusions of Law on July 13, 2017.³ On June 5, 2018 the state court entered a final in rem foreclosure judgment (the "Foreclosure Judgment").⁴ As of the time of the final hearing on the Stay Relief Motion, the Foreclosure Judgment was on appeal.

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