Annual Report 2014

AnnualReport 2014United States Bankruptcy Court Central District of California STATES BANKRUPTC L DISTRICT OF CALI Y COURTCENTRAUNITED FORNIA

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Annual Report 2014TABLE OF CONTENTSINTRODUCTION Executive Summary................................................................................................................................................................. X Mission and Vision of the Court............................................................................................................................................. X The Bankruptcy Judges of the Central District of California ................................................................................................. XIN PROFILE District Profile ........................................................................................................................................................................ X Population Served .................................................................................................................................................................. XAPPOINTMENTS AND MILESTONES Judge Sheri Bluebond Selected as Chief Bankruptcy Judge and Named Judge of the Year .................................................... X Judge Barry Russell Reappointed ........................................................................................................................................... X Judge Erithe A. Smith Celebrates 20 Years on the Bench ...................................................................................................... X Judge Robin L. Riblet Celebrates Retirement ........................................................................................................................ X Central District Welcomes New Bankruptcy Judge Scott H. Yun ......................................................................................... X Judge Maureen A. Tighe Profiled ........................................................................................................................................... X Judge Mark D. Houle Profiled ............................................................................................................................................... X Passing of Retired Judge Arthur M. Greenwald ..................................................................................................................... X Committee Appointments ..................................................................................................................................................... X Clerk’s Office Staff Serves the National Conference of Bankruptcy Clerks ........................................................................... X California Central District Judicial Committees .................................................................................................................... XJUDICIAL CASELOAD Bankruptcy Filings ................................................................................................................................................................. X Pro Se Filings .......................................................................................................................................................................... X Adversary Proceedings ........................................................................................................................................................... X Cases of Interest ..................................................................................................................................................................... X Judges Relocated ................................................................................................................................................................... X Northern Division Expanded ................................................................................................................................................. X Cases Reassigned to Judge Yun .............................................................................................................................................. XCOMMUNITY OUTREACH, COURT EVENTS, AND PROGRAMS Community Outreach ............................................................................................................................................................ X Court Events .......................................................................................................................................................................... X Speaking Engagements and Programs ................................................................................................................................... XKEY STUDIES, ACTIVITIES, AND ACCOMPLISHMENTS Judiciary Budget Challenges for the Court ............................................................................................................................ X Electronic Self-Representation Software Offered to Pro Se Debtors ..................................................................................... X Central District Permanently Adopts Debtor Electronic Bankruptcy Noticing ..................................................................... X Clerk’s Office Expands Shared Administrative Services ......................................................................................................... X Court Publishes Third Annual Pro Se Report ......................................................................................................................... X Mediation Program ................................................................................................................................................................ X Internal Controls and Audits ................................................................................................................................................. X Bar Advisory Board Provides Vital Input ............................................................................................................................... X Changes to Federal Court Miscellaneous Fee Schedule ......................................................................................................... X PACER Change Temporarily Affects Access to Los Angeles Cases Closed Prior to 2001 .................................................... X Changes to National Bankruptcy Forms Implemented .......................................................................................................... X Employment Dispute Resolution Plan Amended .................................................................................................................. X AO Features Court Strategic Plan on JNet ............................................................................................................................ X Central District Continues Archiving Project ........................................................................................................................ X Court Staff Members Receive Awards from U.S. Probation Office ........................................................................................ X Supreme Court Oral Argument Broadcast to Court Staff ..................................................................................................... X Bankruptcy Case Timeline ..................................................................................................................................................... X Court’s Fee Waiver Pilot for Pro Bono Attorneys Expands ..................................................................................................... X Petition Packages Substantially Updated ................................................................................................................................ X Modified Case Initiation Action Notice Procedures Implemented ........................................................................................ X AO Supplemental Funding for the Records Digitizing Project and Document Processing Received .................................... X Court Participates in Large Court Workshop on Procurement Issues .................................................................................. XUnited States Bankruptcy Court - Central District of California Page 3

Clerk’s Office Staff Enrolls in NARA Records Management Training Program ................................................................... X Court Staff Attends 2014 NCBC Conference........................................................................................................................ XTECHNOLOGY AND INNOVATION Online Chat Program Now Available .................................................................................................................................... X District-wide Migration to Windows 7 ................................................................................................................................. X Digital Touchscreens Installed in the San Fernando Valley Division ..................................................................................... X Case Management Assist Increases Efficiency ....................................................................................................................... X The Court Tweets ................................................................................................................................................................... X IT Help Desk Support Expands with New Trouble Ticket System ....................................................................................... X Financial Management Provider Functionality Added to CM/ECF ..................................................................................... X IT Security Awareness Alerts and Tips .................................................................................................................................. X Novell ZENworks................................................................................................................................................................... X IT Security Statistics .............................................................................................................................................................. X Auto-Discharge and Auto-Closing Programs Modified ........................................................................................................ X Clerk’s Office Upgrades FTR Gold ....................................................................................................................................... X San Fernando Valley Division Goes Live with Check Capture Program ............................................................................... X Clerk’s Office Promotes Secure Printing ................................................................................................................................ X Clerk’s Office Staff Members Attend 25th Technology Users Group Conference .................................................................. X Externs Provided Individual Network Credentials ................................................................................................................. X Network Availability and Reliability Improved as Part of the AO’s WAN Diversity Project ................................................. X Court Switches to Tapeless Backup ........................................................................................................................................ XHUMAN RESOURCES AND ORGANIZATIONAL DEVELOPMENT Staff Development Department Holds Training Courses and Programs ............................................................................... X Winter Education Seminar: Transition through Innovation .................................................................................................. X 2014 Annual Awards Ceremony ............................................................................................................................................ X Law Clerk/Extern Training Program ..................................................................................................................................... X Court Hosts Sovereign Citizen Training ................................................................................................................................ X African American Heritage Month ........................................................................................................................................ X Lesbian, Gay, Bisexual, Transgender, and Questioning Pride Month ..................................................................................... X Celebrating Asian American Pacific Islander Heritage Month .............................................................................................. X St. Patrick’s Day Celebration in Santa Ana ............................................................................................................................ X Benefits and Wellness Awareness Campaign ......................................................................................................................... X Human Resources Hosts 2014 Benefits, Health, and Safety Fair ........................................................................................... X Centers of Excellence ............................................................................................................................................................. X Paths to Success Leadership Development Program .............................................................................................................. X Passing the Baton ................................................................................................................................................................... X Riverside Staff Presented “Thumbs Up” Award ...................................................................................................................... X Leanne O’Brien Goes to Washington .................................................................................................................................... X Executive Officer/Clerk of Court Accepted to the Judiciary Executive Leadership Program ....................................................... X Federal Court Leadership Program ......................................................................................................................................................... X Voluntary Incentive Programs for Employee Separations (Buyouts) ...................................................................................... X Retirement Counseling Offered ............................................................................................................................................. X Chief Deputy of Operations Michael E. Rotberg Retires ...................................................................................................... X Nationwide Search for Chief Deputy of Operations .............................................................................................................. XFACILITIES, SECURITY, AND EMERGENCY PREPAREDNESS Roybal Realignment Space Planning Efforts Continue ......................................................................................................... X COOP Webpage Launched ................................................................................................................................................... X AO National Judicial Emergency Management Webcast on Exercise Design ....................................................................... X Court Hosts FEMA Continuity Planners Workshop ............................................................................................................ X Emergency Management Overview for Federal Agencies ..................................................................................................... X Continuity of Operations Training ......................................................................................................................................... X May Day COOP Telework Exercise ...................................................................................................................................... X Resilient Angel Annual Continuity Preparedness Workshop ................................................................................................. X Floor Warden/Emergency Preparedness Training ................................................................................................................. X New Workstations for Courtroom Services ............................................................................................................................ X Northern Division Reconfiguration ....................................................................................................................................... X New Wall Covering in Roybal Building Jury Rooms.............................................................................................................. X Inventory and Property Management Update ........................................................................................................................ XAPPENDICES 2014 – 2019 Court Strategic Plan Accomplishments ............................................................................................................ X Bankruptcy Filings and Percentage Change: 1980 – 2014 ..................................................................................................... X

Annual Report 2014INTRODUCTIONEXECUTIVE SUMMARYIn 2014, the U.S. Bankruptcy Court for the Central • On June 20, Judge Scott H. Yun was appointed toDistrict of California found innovative ways to his first term on the bankruptcy bench. Judge Yunmaximize efficiency, conserve resources, and prepare serves in the Riverside Division.for the future, while continuing to manage the largestcaseload in the nation. Highlights of the year include: • In September, the Court made bankruptcy filing software available to pro se debtors through its• Judge Sheri Bluebond was selected to assume website. The Electronic Self-Representation (eSR) post as the next Chief Bankruptcy Judge for program enables self-represented debtors to prepare the Central District. She will succeed Chief and submit chapter 7 petitions electronically. Judge Peter H. Carroll, who has served as Chief Bankruptcy Judge since 2011. Judge Bluebond will • The Court adopted the electronic noticing pilot, be the seventh Chief Bankruptcy Judge for the DeBN,on a permanent basis,and the Administrative Central District and has served as a bankruptcy Office of the U.S. Courts (AO) made the program judge since 2001. On November 6, in recognition available to bankruptcy courts throughout the for her contributions to bankruptcy adjudication nation. Electronic noticing saves money, reduces and service to the community, the Central District paper waste, and improves communication with Consumer Bankruptcy Attorney Association debtors. (cdcbaa) presented Judge Bluebond with the Calvin Ashland Judge of the Year award. • During its second year, the Court’s Shared Administrative Services (SAS) team increased the• Despite the ongoing decline in bankruptcy filings, number of services offered to other courts and federal the Central District of California led the nation agencies.The Court completed 15 SAS agreements in in the number of cases initiated for the seventh 2014, resulting in over $80,000 in revenue. consecutive year. A total of 57,356 petitions were filed in the Central District. • In February, the Clerk’s Office launched the full version of its online chat program. Visitors to the• In August, Judge Barry Russell, who is the most Court’s website can enter into real-time chat with senior bankruptcy judge actively serving in the a representative of the Call Center to ask specific United States, was reappointed to a fourth term. procedural questions about bankruptcy. Judge Russell has served the Central District for nearly 40 years. • In preparation for the completion of the new Los Angeles Courthouse, the Court continued to• At the Los Angeles Bankruptcy Forum (LABF) collaborate with federal agencies, contractors, and Annual Holiday Party, on December 8, 2014, the other court units on the Roybal Realignment Project. LABF paid tribute to Judge Alan M. Ahart upon his retirement after almost 27 years on the bench. • After over 40 years of service, Chief Deputy of Judge Ahart was appointed on April 4, 1988 Operations Michael E. Rotberg announced his and reappointed on April 4, 2002. He is retiring retirement. The Court initiated a nationwide effective January 2, 2015 but will serve as a recalled search for a new chief deputy in May 2014. On bankruptcy judge beginning January 3, 2015. November 3, the Executive Officer/Clerk of Court announced the selection of Operations Manager• For Judge Erithe A. Smith, this year marked the Benjamin Varela as chief deputy. Mr. Varela began 20th anniversary of her first appointment to the transitioning immediately and replaced Mr.Rotberg bench. In May, the Santa Ana Division celebrated upon his retirement. this milestone in Judge Smith’s career.United States Bankruptcy Court - Central District of California Page 1

OUR MISSIONTo serve the most populous and diverse judicial district in the country by providingbankruptcy relief, fair and impartial justice, and a prompt and efficient resolution of disputes. OUR VISIONThe United States Bankruptcy Court for the Central District of California will provide thehighest quality of justice and service to the public by: • Maintaining a safe, professional environment • Adhering to high standards of conduct and professional development • Treating the public with dignity and respect • Being accessible, convenient, understandable, and responsive to the needs of the district’s diverse community • Allocating and managing resources efficiently and effectively • Using advanced technology to support the Court, enhance access to justice, and serve those who access the Court • Educating the public about the role and function of the Court and the services provided

Annual Report 2014 THE BANKRUPTCY JUDGES OF THECENTRAL DISTRICT OF CALIFORNIA Left to Right: Top Row: Theodor C. Albert, Deborah J. Saltzman, Scott C. Clarkson, Neil W. Bason, Ernest M. Robles, Mark D. Houle, Wayne Johnson, Mark S. WallaceMiddle Row: Robin L. Riblet (recalled), Thomas B. Donovan, Catherine E. Bauer, Meredith A. Jury, Julia W. Brand, Sandra R. Klein, Richard M. Neiter, Erithe A. Smith, Robert N. Kwan, Victoria S. Kaufman Front Row: Alan M. Ahart, Sheri Bluebond, Vincent P. Zurzolo, Peter H. Carroll (Chief Judge), Geraldine Mund (recalled), Barry Russell, Maureen A. Tighe Not pictured: Scott H. YunUnited States Bankruptcy Court - Central District of California Page 3

Annual Report 2014IN PROFILECALIFORNIA CENTRAL BANKRUPTCY COURT DISTRICT MAPDISTRICT PROFILEThe Ninth Circuit is the largest of the 12 federal circuits in terms of size, population, number of federal judges,and volume of litigation. Encompassing the federal courts of Alaska, Arizona, California, Hawaii, Idaho, Montana,Nevada, Oregon, Washington, Guam (a U.S.Territory), and the Northern Mariana Islands (a U.S. Commonwealth),the U.S. Bankruptcy Court for the Central District of California is one of 13 bankruptcy courts within the NinthCircuit.The U.S. Bankruptcy Court for the Central District of California is the largest bankruptcy court in the United States.With jurisdiction over seven counties, the Central District covers approximately 40,000 square miles. The CentralDistrict is comprised of five divisions: Los Angeles, Northern, Riverside, San Fernando Valley, and Santa Ana. TheCourt serves the residents of Los Angeles, Orange, Riverside, San Bernardino, Santa Barbara, San Luis Obispo,and Ventura Counties, with courthouses in Los Angeles, Riverside, Santa Ana, Santa Barbara, and Woodland Hills.POPULATION SERVEDWith a population of more than 19.2 million people, the Central District of California represents nearly 50 percentof the state’s population. According to the United States Census Bureau, the Central District of California is hometo four of the five most populous counties in the state, and four of the 12 most populous counties in the UnitedStates (Los Angeles, Orange, Riverside, and San Bernardino Counties).Page 4 United States Bankruptcy Court - Central District of California

Annual Report 2014APPOINTMENTS AND MILESTONES Attorney Jim King Presenting Judge Sheri Bluebond with Chief Judge Peter H. Carroll and Judge Barry Russell Judge of the Year Award District of California for nearly 40 years, is currentlyJUDGE SHERI BLUEBOND SELECTED AS the longest-serving full-time bankruptcy judge in theCHIEF BANKRUPTCY JUDGE AND NAMED nation. This is his fourth appointment to the bench.JUDGE OF THE YEAR Judge Russell has spent his entire legal career inIn 2014, Judge Sheri Bluebond was selected to serve government service. Before he was appointed to theas the next Chief Bankruptcy Judge for the Central bench in 1974, he served as an estate and gift taxDistrict of California. She will assume the post on examiner for the U.S. Department of the Treasury,January 1, 2015. Judge Bluebond will succeed Chief as a deputy public defender, and as an assistant U.S.Judge Peter H. Carroll, who has served as Chief attorney in the Criminal Division of the Office of theBankruptcy Judge since 2011. Judge Bluebond will be U.S. Attorney in the Central District of California.the seventh Chief Bankruptcy Judge for the Central Judge Russell served on the Ninth Circuit BankruptcyDistrict. Judge Bluebond's appointment as Chief Appellate Panel from 1988 to 2001, and as the panel’sBankruptcy Judge will run through 2018. chief judge from 1999 to 2001.On November 6, the Central District Consumer Judge Russell was instrumental in developing theBankruptcy Attorney Association (cdcbaa) held its Court’s Bankruptcy Mediation Program, established in11th Annual Calvin Ashland Awards Dinner honoring 1995, and has been the administrator of the programJudge Bluebond. The event, attended by members since its inception. From 2001 to 2011, he served asof the Judiciary, Bar, and other organizations, was a member of the Ninth Circuit Alternative Disputeheld at the L.A. Hotel in Downtown Los Angeles. Resolution (ADR) Committee. Judge Russell servedDuring the ceremony, attorney Jim King presented as chief judge of the U.S. Bankruptcy Court for theJudge Bluebond with the Calvin Ashland Judge of Central District of California from 2003 to 2006.the Year award for her remarkable contributions andexceptional service as a bankruptcy judge for the JUDGE ERITHE A. SMITH CELEBRATES 20Central District of California. YEARS ON THE BENCHJUDGE BARRY RUSSELL REAPPOINTED Judge Erithe A. Smith was appointed by the U.S. Court of Appeals for the Ninth Circuit Court to serve as aOn August 25, 2014, Chief Judge Alex Kozinski bankruptcy judge for the Central District of Californiaof the U.S. Court of Appeals for the Ninth Circuit on May 2, 1994, and reappointed on May 2, 2008. Thisannounced the reappointment of Judge Barry Russell. year marks Judge Smith’s 20th year of service to theJudge Russell, who has been serving the Central Court.United States Bankruptcy Court - Central District of California Page 5

Annual Report 2014Left to Right: Judges Theodor C. Albert, Erithe A. Smith, Mark S. Wallace, Chief Judge Peter H. Carroll and Judge Scott H. Yunand Catherine E. Bauer M. Robles in 1997 and entered private practice, firstThe Santa Ana judges, law clerks, and Clerk’s Office as an associate with Steinberg, Barness & Foster,staff shared a moment of reflection commemorating then as an associate with Robinson, Diamant & Brill.Judge Smith’s 20 years on the bench. During the In 2000, he joined the firm of Stutman, Treister &event, attendees celebrated Judge Smith’s amazing Glatt, representing chapter 11 debtors and officialaccomplishments throughout her tenure. committees of unsecured creditors as lead or co-lead counsel. He served on the firm’s executive board asJUDGE ROBIN L. RIBLET CELEBRATES president, and had been a shareholder since 2003.RETIREMENT Judge Yun heard his first cases in the RiversideOn May 10, 2014, Judge Robin L. Riblet, along Division on July 23, 2014.with her family, friends, and colleagues, celebratedher retirement after a 26-year career as a bankruptcy JUDGE MAUREEN A. TIGHE PROFILEDjudge. Guests enjoyed a beautiful buffet-style dinnercomplete with a sushi bar. After dinner, the attendees Judge Maureen A. Tighesurrounded Judge Riblet as her family made a heartfelt was the subject of a judicialpresentation. Judge Riblet retired on May 9 and profile in the Septemberassumed recalled status on May 11. 10, 2014 issue of the Daily Journal. The article,CENTRAL DISTRICT WELCOMES NEW written by staff writerBANKRUPTCY JUDGE SCOTT H. YUN Brian Cardile, describes Judge Tighe’s work toOn June 20, 2014, Chief Judge Alex Kozinski of improve her community,the U.S. Court of Appeals for the Ninth Circuit with particular focus onannounced the appointment of Scott H. Yun to serve her efforts to ensure thatas a judge for the United States Bankruptcy Court for self-represented partiesthe Central District of California. Chief Bankruptcy have fair access to justice. It details the judge’s work toJudge Peter H. Carroll swore in the new judge on compile and analyze data about the Central District’sJune 23. Judge Yun serves in the Riverside Division, self-represented litigants in the Court’s pro se annualfilling the position left vacant by the transfer of Judge reports, and her role in opening self-help desks inDeborah J. Saltzman to Los Angeles. the San Fernando Valley Division and throughout the Central District. Mr. Cardile quotes numerousBorn in Seoul, South Korea, Judge Yun graduated cum attorneys who have either appeared before Judgelaude from University of California, Los Angeles in 1993 Tighe or encountered her in their work on behalf ofand received his Juris Doctor from the University of pro se parties. All testify to her fairness and empathy.Southern California Gould School of Law in 1996.He served as a law clerk to Bankruptcy Judge ErnestPage 6 United States Bankruptcy Court - Central District of California

Born in New Jersey, Judge Tighe graduated from Annual Report 2014Rutgers School of Law with high honors in 1984. Shewas editor-in-chief of the school’s law review. After judge’s judicial persona. She also provides a thumbnailgraduation, she clerked for District Judge Harold of his judicial philosophy. In the words of the profile,A. Ackerman in New Jersey, and then spent two Judge Houle “sees himself largely as a facilitator” whoyears as an associate at a New York law firm. From “prefers to focus on efficiency and substantive issues,1988 to 1996, Judge Tighe was a coordinator for the rather than rigidly following procedure.” Ms. FieldBankruptcy Fraud Task Force of the U.S. Attorney’s concludes by praising the judge’s “experience, love ofOffice (USAO) in Los Angeles. She served as deputy the law, and attitude.”chief of the USAO major frauds section from 1995to 1998, and as a U.S. Trustee in the Central District PASSING OF RETIRED JUDGE ARTHUR M.from 1998 until 2003, when she was appointed to the GREENWALDbench. Retired Judge Arthur M.JUDGE MARK D. HOULE PROFILED Greenwald died on June 4, 2014 following a longJudge Mark D. Houle was illness. First appointed as a bankruptcy judge inthe subject of a judicial 1988, Judge Greenwald was reappointed in 1992,profile in the winter and was serving in the San Fernando Valley Divisionissue of the Federal Bar when he retired in 2005. He had been a member of the California Bar since 1964,Association’s (FBA’s) and had served as an assistant U.S. attorney for seven years before his appointment to the bench.Inland Empire Bar Review. Chief Judge Peter H. Carroll prepared a resolutionAuthor Stefanie G. Field, from the Court honoring Judge Greenwald. The matted and framed resolution was hand-delivered bywho sits on the Board of Communications Specialist Laura Piedra to Judge Greenwald’s twin sister, Pearl Greenwald.Directors of the FBA’s COMMITTEE APPOINTMENTSInland Empire Chapter, Judge Erithe A. Smith Continues to Serve onnotes Judge Houle’s sense the U.S. Judicial Conference's Committee on the Administration of the Bankruptcy Systemof humor, humility, and Since 2012, Judge Erithefairness. A. Smith has served as a member of the U.S. JudicialAfter graduating summa cum laude from Salem Conference’s Committee onState College in 1993, Judge Houle enrolled in the Administration of theBoston College Law School, where he developed Bankruptcy System (Bankruptcyan interest in bankruptcy law. After completing law Committee). Charged withschool, the Massachusetts-native relocated to the oversight of the bankruptcyCentral District of California to work as a rotating system, the committee monitorslaw clerk for Judges Lynne Riddle, James N. Barr, and analyzes bankruptcyRobert W. Alberts, and John J. Wilson. He then wentinto private practice as associate with a bankruptcyfirm. While he was there, according to Ms. Field’sbiographical sketch, Judge Houle “[so] impressedopposing counsel at Pillsbury Winthrop Shaw PittmanLLP that they offered him a job.” Judge Houle wasof counsel with Pillsbury Winthrop Shaw PittmanLLP when he was appointed to the bench in 2012.Asked for the traits that have contributed to his success,Judge Houle lists “merit, resiliency, and being nice,”which Ms.Field counts as essential characteristics of the United States Bankruptcy Court - Central District of California Page 7

Annual Report 2014 Additionally, on September 30, 2014, Chief Judge Carroll began serving on the Executive Committee:operations throughout the nation. It also makes Ninth Circuit Conference of Chief Bankruptcy Judges.recommendations to the Judicial Conference on the His term will end on September 30, 2015.numbers and locations of bankruptcy judgeships, issuesthat affect the office of bankruptcy judge, the allocationof judicial resources to bankruptcy courts, and othermatters. Judge Smith serves on the Subcommitteeon Budget Matters and the Subcommittee on EstateAdministration. She also serves as the BankruptcyCommittee’s liaison to the Bankruptcy Rules Committeeof the Judicial Conference. Judge Smith’s term will endon October 1, 2015. Judge Maureen A. Tighe Judge Catherine E. Bauer Judges Tighe and Bauer Serve on the Ninth Circuit Pro Se Litigation CommitteeChief Judge Peter H. Carroll Judge Gregg W. Zive Judges Maureen A.Tighe and Catherine E. Bauer serve on the Ninth Circuit Pro Se Litigation Committee.Chief Judge Carroll and Judge Zive Serve on Pursuant to its mission, the Ninth Circuit Pro Sethe Conference of Chief Bankruptcy Judges Litigation Committee considers the impact onof the Ninth Circuit unrepresented litigants and makes recommendations with respect to improving the administration of suchChief Judge Peter H. Carroll and Judge Gregg W. cases. Judge Tighe’s term ended on September 30,Zive serve on the Ninth Circuit Conference of Chief 2014 and Judge Bauer’s term will end on SeptemberBankruptcy Judges. The conference, which meets 30, 2015.twice per year, supports the effective and expeditiousadministration of justice and the safeguarding of Judge Richard M. Neiter Serves on the Ninthfairness in the administration of the bankruptcy Circuit Alternative Dispute Resolutioncourts within the circuit and serves as a resource to Committeethe Judicial Council of the Ninth Circuit and itsrepresentatives to the Judicial Conference. To do so, it Judge Richard M. Neiter servespromotes the fair and prompt resolution of disputes, on the Ninth Circuit Standingensures the effective discharge of court business, Committee on Alternativeprevents any form of invidious discrimination, Dispute Resolution (ADR). Theenhances public understanding of, and confidence in, committee produces educationalthe Judiciary and the bankruptcy system and keeps materials on ADR for the benefitapprised of and advises the Judicial Council on issues of the Ninth Circuit’s district andwhich may affect these goals. Judge Zive’s term ended bankruptcy judges and aids inon July 31, 2014 and Chief Judge Carroll’s term will developing and expanding ADRend on January 2, 2015. programs within the Circuit. Judge Neiter’s term will end on September 30, 2015.Page 8 United States Bankruptcy Court - Central District of California

Annual Report 2014Judge Deborah J. Saltzman Serves on the Judge Julia W. Brand Judge Scott C. ClarksonNextGen CM/ECF Working Group and NinthCircuit Courts & Community Committee Judge Sandra R. Klein Judge Deborah J. SaltzmanJudge Deborah J. Saltzman Judicial Conference. Members of the committeeserves as a member of the also participate in an annual review of Ninth Circuitnational Next Generation bankruptcy decisions and in the annual New Judges(NextGen) Case Management/ Orientation. Judges Saltzman’s, Clarkson’s, and Klein’sElectronic Case Files (CM/ terms ended on July 31, 2014, and Judge Brand’s termECF) Working Group. The will end on September 30, 2015.group includes five bankruptcyjudges. The purpose of the Judge Geraldine Mund Serves on the AdvisoryNextGen CM/ECF Working Council for the Ninth Judicial CircuitGroup is to review functional Historical Societyrequirements and designdocuments for a new application related to how work Judge Geraldine Mund continuesis done in CM/ECF, and to review policy questions and to serve on the Advisory Councilmake recommendations concerning whether policy issues for the Ninth Judicial Circuitshould be referred to the Court Administration and Historical Society (NJCHS)Case Management Committee’s NextGen Subcommittee. Committee. The NJCHS wasJudge Saltzman provides regular updates to the Court’s founded in 1985 to collect,IT Committee and CM/ECF Committee. preserve, and present to the public the history of law in the westernAdditionally, Judge Saltzman serves on the Ninth United States and the PacificCircuit Courts & Community Committee. Charged Islands. The organization also educates children andwith educating the public about federal courts, the the general public about the judicial system, rule ofNinth Circuit Courts & Community Committee law, and other civic values. As a longtime memberpromotes community outreach programs and on the NJCHS, Judge Mund has been instrumentalcultivates relationships between the courts and media. in overseeing the national implementation of oralJudge Saltzman’s Ninth Circuit Courts & Community histories for bankruptcy judges and attorneys,Committee term will end on September 30, 2015. constructing NJCHS’s Strategic Plan, and much more.Judges Brand, Clarkson, Klein, and SaltzmanServe on the Ninth Circuit Bankruptcy JudgesEducation CommitteeJudges Julia W. Brand, Scott C. Clarkson, Sandra R.Klein, and Deborah J. Saltzman serve on the NinthCircuit Bankruptcy Judges Education Committee.Judge Clarkson has served as the chair of thecommittee since November 2013. The Ninth CircuitBankruptcy Judges Education Committee was formedmore than 20 years ago to provide an educationalprogram exclusively related to bankruptcy topics.Members are either elected by their peers or volunteerto serve three-year terms. The committee consistsof six or seven bankruptcy judges from the NinthCircuit who work together to create a pre-conferenceprogram that is presented at the annual Ninth CircuitUnited States Bankruptcy Court - Central District of California Page 9

Annual Report 2014 Chief Judge Peter H. Carroll Samuel AbramChief Judge Peter H. Carroll Serves on CBF Chief Judge Peter H. Carroll and SystemsPro Bono Committee Integration Manager Sam Abram Serve on the Ninth Circuit IT CommitteeChief Judge Peter H. Carrollcontinued to serve on the On December 4, 2014, Chief Judge Peter H. CarrollCalifornia Bankruptcy Forum was appointed to the Ninth Circuit Information(CBF) Pro Bono Committee, Technology Committee through September 30, 2017.which oversees the CBF Pro Systems Integration Manager Sam Abram, appointedBono Project. CBF established to the committee in 2011 and reappointed in 2013,the Pro Bono Project in 2013 in concluded his term on September 30, 2014.response to the needs of pro sebankruptcy filers in California The Ninth Circuit IT Committee discusses ITbankruptcy courts. For every trends and directions, establishes guidelines andCBF conference registrant, makes recommendations for implementation of newCBF sets aside $10 to fund local legal aid or other initiatives within the Ninth Circuit, and demonstratesnonprofit groups that provide pro bono bankruptcy new technologies which can be beneficial to Ninthservices. Other funds are derived from the CBF’s Circuit courts. Additionally, the Ninth Circuit ITpro bono auction at the conference and voluntary Committee discusses training court staff on newdonations by attendees. In conjunction with the 2014 software, hardware, processes, and procedures.Annual Conference in Santa Barbara, the CBF useda crowdfunding competition between the Orange Executive Officer/Clerk of Court Kathleen J.County Bankruptcy Forum (OCBF) and the Los Campbell Serves on the Bankruptcy ClerksAngeles Bankruptcy Forum (LABF) to raise a total Advisory Group, Ninth Circuit Courts &of $10,466.11 for the project. The OCBF funds will Community Committee, and Human Resourcesbe used “to expand the reach of pro se clinics via the Advisory Councilinternet,” while the LABF will use the funds “tosupport the work of the ‘self-help desks’ located in Executive Officer/Clerk ofthe Los Angeles, San Fernando Valley, and Northern Court Kathleen J. CampbellDivisions.” served on the Bankruptcy Clerks Advisory GroupJudge Scott C. Clarkson Appointed to (BCAG) through DecemberIndividual Chapter 11 Task Force 31, 2014 and is currently serving on the Ninth CircuitIn the spring of 2014, Judge Scott Courts & CommunityC. Clarkson was appointed to the Committee and the HumanAmerican Bankruptcy Institute’s Resources Advisory Council(ABI’s) Individual Chapter 11Task Force as a member of theJudges Advisory Panel. TheIndividual Chapter 11 Task Forcehas undertaken a two-year studyof individual chapter 11 casesthroughout the nation, in hopesof developing a comprehensive report and providingrecommendations for improvement of the system andthe procedures used in individual chapter 11 cases.Judge Clarkson is one of six bankruptcy judges servingon the task force.P a g e 10 United States Bankruptcy Court - Central District of California

Annual Report 2014(HRAC). BCAG provides advice about Clerk’s 10-member group collects, reviews, and recommendsOffice-related issues that affect the administration of selected court practices that increase the efficiency orthe bankruptcy system. effectiveness of bankruptcy clerk’s offices.As a member of the Ninth Circuit Courts & The BMAP Working Group meets in-person upCommunity Committee, Ms. Campbell aids in to three times per year and keeps in touch througheducating the public about the work of the federal periodic conference calls. Ms. Brask’s appointment willcourts by promoting community outreach programs end on December 31, 2015.and facilitating relations between the courts and media.Ms. Campbell’s term on the Ninth Circuit Courts & Francis Ha Appointed to Courtroom TechnologyCommunity Committee will end on September 30,2015. Working GroupMs. Campbell also serves on the HRAC. The HRAC Network Manager Francis Haprovides advice on the needs and views of court served on the Administrativeconstituents with respect to judiciary-wide human Office of the U.S. Courts’resources matters. Ms. Campbell’s term on the HRAC (AO) Courtroom Technologywill end on December 31, 2015. Working Group. The Courtroom Technology Working GroupBeryl Dixon Serves on the Human Resources evaluates and recommendsSpecialists Advisory Group changes to the current courtroom technology program. ItsOfficer of Planning and recommendations concern funding mechanisms,Personnel Management Beryl procurement strategies, best practices, guidelines, andDixon serves on the Human the future direction of the program.The working groupResources Specialists Advisory also assists the AO and the Information TechnologyGroup (HRSAG). The Advisory Council in making recommendations toHRSAG’s mission is to provide the Judicial Conference Committee on Informationthe Administrative Office of the Technology for adjustments to the courtroomU.S. Courts (AO) with advice, technology program. Mr. Ha’s appointment ended inassistance, and recommendations September 2014.regarding human resources,payroll, and benefits administration on an ongoing Herbert Seales Announced as Co-Chair of thebasis, in order to enhance the quality and timeliness Greater Los Angeles Area Federal Executiveof service to courts. Ms. Dixon’s term will end on BoardDecember 31, 2015. Administrative Specialist andSandi Brask Appointed to Bankruptcy COOP Coordinator Herbert SealesMethods Analysis Program Working Group continued to serve as co-chair for the Greater Los Angeles FederalOn March 13, 2014, the Executive Board (GLAFEB)Administrative Office of the COOP Working Group.U.S. Courts (AO) announcedthat Special Projects Manager Established in 2006, the GLAFEBSandi Brask had been appointed Continuity Working Group’sto serve on the Bankruptcy mission is to:Methods Analysis Program(BMAP) Working Group. The • Promote the development of continuity plans and enhance the federal partners’ overallUnited States Bankruptcy Court - Central District of California P a g e 11

Annual Report 2014 emergency preparedness for a wide-range of Jan Zari Appointed Editor of the NCBC potential emergencies as mandated in Homeland Newsletter Security Presidential Directive-20, National Continuity Policy, the National Continuity Policy On September 15, 2014, Implementation Plan, and Federal Continuity Administrative Specialist Jan Directive-1 (FCD-1), Federal Executive Branch Zari was appointed as the Impact National Continuity Program and Requirements. Editor for the NCBC. As Impact Editor, he chairs the NCBC • Encourage agency emergency preparedness Editorial Committee and serves and employee readiness among public and on the NCBC Board. The Impact private organizations through partnerships and is the official newsletter of the preparedness activities. NCBC and is distributed to all members. The Impact newsletter includes updates from the NCBC BoardWorking with this group affords the Court additional and the various activities of the organization, as wellresources in the collective regional effort of preparing as news and updates from the Administrative Office offor emergency situations. Mr. Seales’ appointment will the U.S. Courts (AO) and from local courts across theend in 2015. nation. Mr. Zari’s appointment will end in December 2018.CLERK’S OFFICE STAFF SERVESTHE NATIONAL CONFERENCE OF Jennifer Paro Appointed as NCBC HistorianBANKRUPTCY CLERKS Courtroom Technology SpecialistThe National Conference of Bankruptcy Clerks Jennifer Paro serves as the NCBC(NCBC) is a private association that was created Historian. Ms. Paro maintains thein 1980 to address the ongoing needs of bankruptcy NCBC’s existing historical recordsclerks. Since then, NCBC has evolved to include and documents its activities indeputy clerks and other parties interested in the welfare photographs, videos, and audioof the bankruptcy system. NCBC’s main goal is to recordings. Serving jointly withprovide its members with training and development long-time NCBC Historian Maryopportunities, advocate for bankruptcy clerks and the Lynn Wilson, Ms. Paro focuses onbankruptcy system, and foster leadership and input on digitizing the association’s existinga national level. NCBC is governed by officers, board historical documents and recording oral histories,members, and committees who meet in-person and via among other duties. Ms. Paro’s three-year term willtelephonic conference. end in 2016.Central District of California Clerk’s Office staff served Sabrina Palacio-Garcia Elected to NCBCon the following NCBC committees and boards: Board of GovernorsSandi Brask Appointed to NCBC Education Self Help Desk Team LeaderCommittee Sabrina Palacio-Garcia continued to serve as NCBC Ninth CircuitIn October 2014, Special Projects Liaison until she was elected byManager Sandi Brask was NCBC members to the Boardappointed to the NCBC Education of Governors in July 2014. As aCommittee for the 2015 NCBC member of the Board of Governors,Conference, which is tasked with Ms. Palacio-Garcia is responsibledeveloping the educational content for completing at least one projectof the 2015 conference.P a g e 12 United States Bankruptcy Court - Central District of California

assigned or designated by the President of NCBC Annual Report 2014or agreed upon by a majority vote of the Board ofGovernors. Additionally, Ms. Palacio-Garcia was Conference, as NCBC Local Representatives, Ms.selected to chair the Membership Committee by the Miller and Ms. Yepes will work with the Ninth CircuitPresident of NCBC. Ms. Palacio-Garcia’s two-year Liaison to promote and increase NCBC membershipterm will end in 2016. and participation within the Court. Ms. Miller’s and Ms. Yepes’ terms will end in 2016.Jessica Garibay Serves as Ninth CircuitLiaison of the NCBCReplacing Self Help DeskTeam Leader Sabrina Palacio-Garcia, Executive AssistantJessica Garibay was appointedto serve as the Ninth CircuitLiaison by the President ofNCBC, with the consent ofthe Board of Governors. Asthe Ninth Circuit Liaison, herduties consist of representingthe Circuit constituency, coordinating NCBCactivities within the Circuit, chairing meetingsand teleconferences with the NCBC Board, anddisseminating membership and other informationas necessary. Ms. Garibay's appointment will end inDecember 2016.Myeasha Miller Monica YepesMyeasha Miller and Monica YepesAppointed as NCBC Local RepresentativesIn December 2014, Customer Service RepresentativeMyeasha Miller and Operations Support ClerkMonica Yepes were appointed to two-year terms asNCBC Local Representatives. In addition to actingas the Court’s local contact for the annual NCBC United States Bankruptcy Court - Central District of California P a g e 13

Annual Report 2014 CALIFORNIA CENTRAL DISTRICT JUDICIAL COMMITTEESIn accordance with the Court Governance Plan, judicial committees appointed by the Chief Judge address court-related issues and provide feedback to the entire Board of Judges regarding court operations and administrativeissues. The Chief Judge and the Executive Officer/Clerk of Court are ex officio members of each committee.Clerk’s Office staff members attend meetings and support the judicial committees.The members of the 2014 judicial committees were: EDUCATION AND TRAINING/RETREATEXECUTIVE Deborah J. Saltzman, Chair Neil W. BasonPeter H. Carroll, Chair Julia W. BrandAlan M. Ahart Erithe A. SmithTheodor C. Albert Mark S. WallaceSheri Bluebond Mark D. HouleMeredith A. Jury Law Clerk: Erica LeeRobin L. RibletMaureen A. TigheVincent P. ZurzoloALTERNATIVE DISPUTE RESOLUTION INFORMATION TECHNOLOGYBarry Russell, Chair Deborah J. Saltzman, ChairRichard M. Neiter Scott C. ClarksonLaw Clerk: Lovee Sarenas Mark D. HouleCASE MANAGEMENT PRO SESheri Bluebond, Chair Maureen A. Tighe, ChairMark D. Houle Catherine E. BauerRobert N. Kwan Sandra R. KleinRobin L. Riblet Robin L. RibletMaureen A. Tighe Deborah J. SaltzmanCHAPTER 13 RULESJulia W. Brand, Chair Vincent P. Zurzolo, ChairMeredith A. Jury Theodor C. AlbertWayne Johnson Neil W. BasonVincent P. Zurzolo Law Clerk: Jeffrey CozadCOMMUNITY OUTREACH SPACE AND SECURITYSandra R. Klein, Chair Robert N. Kwan, ChairDeborah J. Saltzman Alan M. AhartErithe A. Smith Wayne E. JohnsonMaureen A. Tighe Robin L. RibletLaw Clerk: Stephanie Rettier Mark S. WallaceP a g e 14 United States Bankruptcy Court - Central District of California

Annual Report 2014JUDICIAL CASELOADBANKRUPTCY FILINGS CENTRAL DISTRICT OF CALIFORNIA BANKRUPTCY CASES FILED BY CHAPTER OF THE BANKRUPTCY CODE CALENDAR YEARS 2008 - 2014The Central District of California led the nation Year Total 7 11 Chapter 13 OTHER1in overall bankruptcy cases filed for the seventh 2008 65,856 49,451 789 12 15,611 3consecutive year. A total of 57,356 individual and 2009 108,647 83,656 1,126 23,853 3business bankruptcy cases were filed during the 2010 142,726 109,415 1,123 2 32,174 112-month period ending December 31, 2014, a 24.1 2011 134,501 99,170 1,165 9 34,154 3percent decrease from 75,581 filings received in 2012 105,515 81,128 904 13 23,473 32013. Filings for all chapters declined significantly. 2013 75,581 61,127 725 9 13,726 1 2014 57,356 45,710 502 7 11,140 1 2 3Chapter 7 filings decreased by 25.2 percent to 45,710 Percent Change -24.1% -25.2% -30.8% 50.0% -18.8% 0.0%filings in 2014 and accounted for 79.7 percent of all 2013- 2014petitions filed district-wide. Chapter 7 filings also Pendingaccounted for 79.0 percent of all business filings and 1 Includes cases filed under chapters 9 and 15 of the bankruptcy code 51,46179.7 percent of all nonbusiness filings in 2014. 74,443 CENTRAL DISTRICT OF CALIFORNIA 82,059Chapter 11 filings decreased 30.8 percent to 502. Total Bankruptcy Filings By Division 70,383Chapter 11 cases, which typically require more 2014 65,962judicial resources than cases that are filed under other Santa Barbara 51,136chapters, accounted for approximately 0.9 percent 2,905 46,482of all petitions filed in 2014, consistent with the 5% -9.1%percentage of chapter 11 filings from 2013. Over 64 San Fernando Valleypercent of chapter 11 petitions were business cases. 5,944 10% Santa Ana Los Angeles 7,703 24,797 14% 43%Chapter 13 filings decreased 18.8 percent to 11,140 Riversidefilings in 2014. Chapter 13 petitions accounted for 16,00719.4 percent of all filings in 2014, up from 18.2percent in 2013. Chapter 13 petitions also accounted 28%for 20.0 percent of all nonbusiness filings and 4.8percent of all business filings in 2014. *Los Angeles total does not include one Chapter 15 CENTRAL DISTRICT OF CALIFORNIAThe number of bankruptcy petitions terminated by BANKRUPTCY CASES FILED, CLOSED, AND PENDINGthe Central District in 2014 dropped 31.4 percent CALENDAR YEARS 2008 - 2014to 62,024. Because terminations exceeded filings in Filed2014, there were 46,482 cases pending in December2014, which was 9.1 percent less than the number of Year Los Angeles Total Nonbusiness Business Closed RSSaaivnnetFrase222iArd000nne010aa890ndo 24,797cases pending in December 2013. to decline for Valley 111756604,,,579082400,,,834767542676 62,345 3,511 40,414Although bankruptcy filings continued 134,501 103,539 5,108 85,719 2011 105,515 137,363 5,363 135,153the fourth consecutive year, the Central District still 2012 130,188 4,313 146,224averaged 103,136 filings per year during the past five 2013 75,581 102,006 3,509 110,014 57,356 72,896 2,685 90,429years, the fifth highest average in the Court’s history. 2014 55,321 2,035 62,024According to the national filing data released by the Percent Change -24.1% -24.1% -24.2% -31.4%Administrative Office of the U.S. Courts (AO), for 2013 - 2014the 12-month period ending December 31, 2014,United States Bankruptcy Court - Central District of California P a g e 15

Annual Report 2014the Central District of California received 11.9 percent Second, Third, Fifth, Eighth, and District of Columbiamore bankruptcy filings than the second-largest Circuits combined.district, the Northern District of Illinois. Additionally,the Central District of California led the nation with Of the 57,356 bankruptcy cases filed in the Centralthe highest total of business, and non-business filings. District, 13,329 were filed by pro se filers. Chapter 13Bankruptcy filings in the Central District of California petitions had the highest pro se percentage with 34.6account for over 6 percent of the nation’s filings. percent, followed by chapter 7 petitions with 20.7 percent filed by pro se filers. Chapter 11 had the smallest U.S. Bankruptcy Court - Central District of California percentage of pro se filings with 6 percent. 2014 Pro Se Filings 60,000 CENTRAL DISTRICT OF CALIFORNIA 50,000 57,356 PRO SE CASES FILED BY CHAPTER OF THE BANKRUPTCY CODE 40,000 30,000 45,710 CALENDAR YEARS 2008 - 2014 20,000 10,000 Chapter 11 12 13 OTHER1 0 Year Total 7 9,447 11,140 13,329 2008 15,095 8,198 74 2 6,821 0 3,851 Total 2009 25,904 15,526 112 0 10,266 0 502 30 2010 36,731 22,093 98 1 14,538 1 2011 38,098 21,594 78 0 16,426 0 Chapter 7 Chapter 11 Chapter 13 2012 28,731 18,230 60 1 10,440 0 2013 18,655 13,314 40 1 5,300 0 *Total filings include chapter 9, 12, and 15 filings Filings 2014 13,329 9,447 30 0 3,851 1 Pro Se Percent Change -28.5% 0% 18F,il0in0g0s Pro Se Bankruptcy Cases Filed by Pro Se Debtors 16,841 2013 - 2014 -29.0% -25.0% -100.0% -27.3% During the 12-Month Period Ending December 31, 2014Chapter 7 45710 9447 15,523 16,000 1 Includes cases filed under chapters 9 and 15 of the Bankruptcy Code 14,000 13,329 12,000 CENTRAL DISTRICT OF CALIFORNIA ADVERSARY PROCEEDINGS FILED, CLOSED, AND PENDING 10,000 8,999 8,000 CALENDAR YEARS 2008 - 2014 6,000 4,000 6,490 Year Filed Closed Pending 2,000 2008 2,976 2,286 3,211 0 4,327 5,216 2009 5,057 2,254 6,014 2010 4,853 5,350 5,521 3,205 3,246 2,678 2,136 2011 4,927 6,133 4,394 835 2012 3,670 4,450 3,632 2013 2,834 3,434 3,042 1st Circuit 2nd Circuit 3rd Circuit 4th Circuit 5th Circuit 6th Circuit 7th Circuit 8th Circuit 9th Circuit 10th Circuit 11th Circuit CACB 2014 1,981 2,444 2,579 Less CACBPRO SE FILINGSThe Central District of California led the nation in Percent Change -30.1% -28.8% -15.2%both the number and percentage of pro se filings for 2013 - 2014the 12-month period ending December 31, 2014. TheCentral District’s rate of pro se filings for the year was ADVERSARY PROCEEDINGS23.2 percent, nearly three times the national averageof 8.8 percent and 5.5 percentage points higher than During the 12-month period ending December 31,the next-highest district, the Middle District of 2014, adversary proceedings decreased 30.1 percentFlorida, with 17.7 percent. The Central District of from 2,834 in 2013 to 1,981.California handled 16.1 percent of the entire nation’spro se bankruptcy filings. Excluding the remainder The number of adversary proceedings terminated inof the Ninth Circuit and the Eleventh Circuit, the 2014 declined by 28.8 percent to 2,444 from 3,434Central District alone handles more pro se filings than terminated in 2013. Pending adversary proceedingsall remaining individual circuits. Also, the Central fell 15.1 percent, from 3,045 in 2013 to 2,584 in 2014.District had more pro se filings than the entire First,P a g e 16 United States Bankruptcy Court - Central District of California

CASES OF INTEREST Annual Report 2014The cases of interest in 2014 reflect the unique estate. At a preliminary hearing, the parties were askedpopulation served in the Central District, as well the to confer and to file further pleadings. Law filed tworegion’s economic climate. The following summaries pleadings: (1) an appeal to the Ninth Circuit of theinclude developments in select ongoing cases and Bankruptcy Appellate Panel’s earlier decision affirminghighlights from new cases initiated in 2014. a 2013 order approving the trustee’s amended final report; and (2) a petition for mandamus to the NinthCity of San Bernardino Circuit seeking payment of his claim. Both are pending. No other pleadings have been filed.The City of San Bernardino continued to drawnational attention as one of the largest cities to pursue Plaza Healthcare, LLCbankruptcy protection. The City filed bankruptcy onAugust 1, 2012, but had yet to confirm a plan through Plaza Healthcare, along with eighteen affiliated nursingthe end of 2014.The City,with an estimated population facilities, filed for chapter 11 bankruptcy protectionof 205,000, underwent financial strain following the on March 4, 2014. Collectively, these facilities hadgreat recession of 2008. Benefits provided to public 1,711 patients, 2,113 employees, and 1,905 beds.employees have been cited by the City as a main Plaza generates annual revenue of approximately $170cause of its ongoing financial struggle and have been million. The Court determined that it was in the bestdiscussed as the source of financial trouble for other interest of all parties to create an overall deal structurecities across the nation following the great recession. to prevent the facilities from being sold piecemeal, and authorized the debtor facilities to enter into anProlonged negotiations between the City and its interim management agreement with the winningpublic safety unions have also been blamed for the bidder at auction to allow the winning bidder to takedelayed confirmation of an exit plan. The Honorable over management of the facilities until the acquisitionMeredith A. Jury imposed a deadline on the City of became final. An auction was held on July 28, 2014, andMay 30, 2015 to propose a plan. A major step taken Shlomo Rechnitz was declared the winning bidder.Thein 2014, following lengthy mediation, was the City’s term sheet for the acquisition included a $32 millionstatement of its intent to cover all payments owed to dollar deposit and a total sales price of $62 million. TheCalPERS for the retirement plans of the City’s public Court anticipates a plan will be filed sometime in theemployees. second quarter of 2015.Law v. Siegel Easy Life Furniture Inc.On March 4, 2014, a unanimous Supreme Court On May 1, 2014, Easy Life Furniture filed a chapter 11reversed the bankruptcy court’s equitable surcharge bankruptcy in order to liquidate assets at its warehouseof Mr. Law’s $75,000 homestead exemption, based in Buena Park,and its 14 retail locations across Southernon § 522(k) which states, “Property that the debtor California. Formed in 1996, Easy Life reported yearlyexempts under this section is not liable for payment of sales averaging $43 million, assets of $6.3 million, andany administrative expense . . . .” The Supreme Court debts of roughly $12 million. Easy Life rejected all 14said the Court exceeded the limits of its authority store leases as well as the lease of its headquarters andunder § 105(a) and its inherent powers. warehouse, conducted going out of business sales at its retail locations to sell off its inventory, and conductedUpon remand, Law moved to collect his homestead a bulk auction for the remainder of its assets in courtclaim, though no funds remained in the bankruptcy on July 2, 2014. The debtor now has reduced its assets to cash and is currently addressing the case's remaining claims.United States Bankruptcy Court - Central District of California P a g e 17

Annual Report 2014 CASES REASSIGNED TO JUDGE YUNIndividual Bankruptcies Receiving Media Concurrent with the start of Judge Scott H. Yun’s term,Attention many bankruptcy cases and adversary proceedings in the Riverside Division were reassigned. On July 21, 2014, Mekhi Phifer Judge Yun was placed on the Riverside Division case On April 22, 2014, Mekhi Phifer, the actor assignment wheel. Also on that day, Judge Deborah known for his role in the 90’s television show, ER, J. Saltzman’s pending Riverside Division cases were filed a chapter 7 bankruptcy petition listing under transferred to Judge Yun, including 566 chapter 7 cases, $100,000 in assets and over $1 million in debt, 20 chapter 11 cases, 1,992 chapter 13 cases, and 86 largely attributed to monies owed for federal and adversary proceedings. state income taxes. The actor received a discharge of over $1.26 million in debt on August 4, 2014. Pierce Henry O’Donnell Pierce Henry O’Donnell, the attorney who assisted with the sale of the Los Angeles Clippers basketball team, filed a chapter 7 bankruptcy petition on August 20, 2014. The petition, filed in the weeks immediately after the sale of the team, was supported by many fans in the wake of controversy over statements made by its previous owner, Donald Sterling. Attorney O’Donnell’s bankruptcy petition listed assets of under $500,000 and several million dollars in debt.JUDGES RELOCATEDIn May 2014, Chief Judge Peter H. Carroll relocatedfrom the Los Angeles Division to the NorthernDivision and Judge Deborah J. Saltzman relocatedfrom the Riverside Division to the Los AngelesDivision. Judge Robin L. Riblet retired on May 9 andassumed recalled status on May 11.NORTHERN DIVISION EXPANDEDOn May 10, 2014, the jurisdiction of the NorthernDivision expanded to include some cities that hadbeen in the jurisdiction of the San Fernando ValleyDivision. Simi Valley, Thousand Oaks, WestlakeVillage, Newbury Park, and Malibu are now served bythe Northern Division.P a g e 18 United States Bankruptcy Court - Central District of California

Annual Report 2014COMMUNITY OUTREACH, COURT EVENTS, ANDPROGRAMSCOMMUNITY OUTREACH H. Segal assisted the student judges and provided information about trial practices and procedures.In 2014, the Court continued to reach out to the Attorneys from the Offices of the U.S. Attorneycommunity through educational initiatives aimed at and Federal Public Defender coached the studentincreasing public understanding, trust, and confidence prosecutors and defense attorneys and mentored thein the federal court system as highlighted in its 2014 students who prepared their own closing arguments.– 2019 Strategic Plan. Each mock trial included a jury, which deliberated and rendered a verdict. Central District Judges, Court Staff, Attorneys, and Junior State of America Students Following the mock trials, Bankruptcy Judges Klein and Tighe provided financial literacy presentations.Court Hosts High School Students for Law The presentations utilized video and audio clips toDay highlight important information such as distinguishing between wants and needs, budgeting, saving, investing,On May 20, 2014, the Court hosted a Law Day using credit cards wisely, and the difference betweencelebration for approximately 80 high school students credit and debit cards. The presentations also includedwho are members of Junior State of America ( JSA). material about student loans and bankruptcy.The Bankruptcy Court’s Community OutreachCommittee, chaired by Bankruptcy Judge Sandra The Bankruptcy Court then hosted a Power Lunch,R. Klein, organized the district-wide Law Day during which judges, lawyers, and other professionalscelebration. Chief Bankruptcy Judge Peter H. Carroll shared lunch with the students and discussed the lawand Bankruptcy Judges Neil W. Bason, Sheri Bluebond, and the legal profession. In addition to the judgesJulia W. Brand, Victoria S. Kaufman, Richard M. already mentioned, the following judges participatedNeiter, and Maureen A. Tighe also participated in the in the Power Lunch: District Court Judges Dolly M.event. JSA is a nonprofit, nonpartisan organization that Gee, John A. Kronstadt, and Beverly Reid O’Connell;encourages students interested in politics, government, Senior District Court Judges Terry J. Hatter, Jr. andforeign affairs, the law, and education, to become active Ronald S.W. Lew; and Magistrate Judges Alka Sagarand informed citizens. The theme for the 2014 Law and Patrick J. Walsh. Executive Officer/Clerk ofDay was “American Democracy and the Rule of Law: Court Kathleen J. Campbell, Federal Public DefenderWhy Every Vote Matters.” Sean K. Kennedy, and numerous attorneys and other professionals from all of the federal agencies were inThe daylong celebration began with two mock trials attendance.involving a criminal texting-while-driving case. Thestudents played all of the roles in the trial, including The Power Lunch opened with a discussion ofthe judges, prosecutors, defense attorneys, courtroom significant events in the nation’s history regardingdeputies, and jurors. District Court Judge Philip voting and voting rights. Students were encouragedS. Gutierrez and Chief Magistrate Judge Suzanne to exercise their voting rights so that their voices can be heard. Guest speaker Loyola Law School Professor Laurie L. Levenson spoke to the students about high profile cases, law, and justice, emphasizing that justice requires hard work and dedication. The Power Lunch concluded with a spirited game of “Legal Jeopardy,” with categories such as “Bill of Rights” and “Who’s Who in the Courtroom.” The students as well as the volunteers had a wonderful time.United States Bankruptcy Court - Central District of California P a g e 19

Annual Report 2014 Consumer Bankruptcy Litigation Practicum BeginsThe Law Day celebration ended with a jobs panel,which featured speakers from the District Court, the On April 15, 2014, Judge Sandra R. Klein, chair of theBankruptcy Court, the Bureau of Prisons, and the Court’s Community Outreach Committee, announcedoffices of the U.S. Attorney, Federal Public Defender, the launch of the Consumer Bankruptcy LitigationU.S.Trustee, Pretrial Services, Probation, U.S. Marshals Practicum (CBLP) to be offered to Loyola Law SchoolService, and Federal Protective Service. The speakers students. CBLP is a year-long course that providesdiscussed their backgrounds, educations, and jobs. students with an understanding of the law governing consumer bankruptcies and an opportunity to develop Left to Right: Beryl Dixon, Jan Zari, Sandi Brask, Judge Sandra R. practical legal skills through engaging in skills-based Klein, Laura Piedra, Raymond Quon, Kimberly Rubal, Nick Tam, Guy simulations and providing assistance to consumer Nakasu, Victor Chavez, and Chief Judge Peter H. Carroll debtors. This course is comprised of two four-unit semesters. The first semester was held in the fall ofJudge Sandra R. Klein Hosts Law Day 2014 and the second semester will be held in the springThank You Party of 2015.On June 13, 2014, Judge Sandra R. Klein welcomed This fall semester covered the substantive law governingthe Clerk’s Office, judges and law clerks to her consumer bankruptcy cases, including: an overviewcourtroom—decorated for the occasion with festive of bankruptcy law and significant Bankruptcy Codeballoons, flowers, and a “Thank You”banner—to convey provisions affecting all types of bankruptcies; a moreher heartfelt gratitude to all those who contributed detailed consideration of the rules and life cyclesto the success of the Court’s Law Day event. Chief of chapters 7 and 13 cases; and an analysis of issuesJudge Peter H. Carroll was present to award the Chief particularly important to consumer debtors, such asJudge Coin to Special Projects Manager Sandi Brask, exemptions, dischargeability, eligibility for chapters 7Communications Specialist Laura Piedra, Training and 13 and alternatives to bankruptcy. After learningSpecialist Kimberly Rubal, Courtroom Technology interviewing techniques, how to identify relevantSpecialist Victor Chavez, Office Services Supervisor issues, and how to prepare necessary bankruptcyGuy Nakasu, Software Developer Raymond Quon, documents, students of the inaugural class gainedOperations Analyst Nick Tam, and Administrative real-life experience by interviewing clients andSpecialist Jan Zari in recognition of their extraordinary preparing chapter 7 petitions under the supervision ofefforts toward the success of the Law Day event. attorneys at the Legal Aid Foundation of Los AngelesDuring her remarks, Judge Klein shared feedback from (LAFLA). In addition to time in the classroom andparticipants in the Law Day event who uniformly at LAFLA, the students observed several bankruptcynoted that the event was carried out seamlessly. A court hearings, learned about courtroom etiquette andvariety of sweet treats were enjoyed by all present, as argued a simulated motion before a bankruptcy judge,well as a heaping side of gratitude for a job well done. who critiqued their argument. In the spring semester, the students will work 16 hours each week at a consumer bankruptcy assistance project, such as Public Counsel. To fulfill their writing requirement, they will prepare approximately three simple pleadings (e.g., a complaint, an answer, a simple motion) and maintain a weekly journal of their activities at the assistance project.P a g e 20 United States Bankruptcy Court - Central District of California

Left to Right: Dr. Stacey Wood, Julie A. Pollock, Molly Davies, and Annual Report 2014 Debbie Deem from dementia. Dr. Wood underscored the reasonsCourt Hosts Training on Financial Elder why some older adults may be susceptible to financialAbuse, Dementia, and Mental Competency exploitation, based on these cognitive changes, andIssues in Bankruptcy referenced sections of the California Probate Code that define financial capacity.On January 31,2014,the Court’s Community OutreachCommittee hosted a training program on financial Molly Davies then provided an introduction to theelder abuse, dementia, and mental incompetency in subject of financial elder abuse in the United States,bankruptcy. The event was organized by University describing the reasons why elders are often targeted,of California, Los Angeles Ann C. Rosenfield Fellow as well as the scope of the problem across the country.Julie A. Pollock with the guidance of Judge Sandra R. Debbie Deem of the FBI. delved into further detailKlein, chair of the Community Outreach Committee; about common types of financial crimes targeting theJudge Maureen A. Tighe; and Executive Officer/Clerk elderly, including mass marketing, investment, andof Court Kathleen J. Campbell. Over 100 attendees foreclosure fraud. Ms. Deem described the impactparticipated, including bankruptcy judges, panel these crimes have on the victims, noting that manytrustees, representatives from the Office of the U.S. individuals may be forced into bankruptcy.Trustee, and chambers and Clerk’s Office staff. As the baby boom population ages, bankruptcy courtsThe program featured panelists VP of Elder Abuse are likely to see an increase in the number of debtorsPrevention at WISE & Healthy Aging Molly over the age of 55 who have fallen victim to financialDavies, Victim Specialist at the Federal Bureau of exploitation, as well as an increase in issues related toInvestigation (FBI). Debbie Deem, and Associate the financial capacity of elder debtors. The CentralProfessor of Psychology at Scripps College Dr. Stacey District hopes to create an ongoing dialogue regardingWood. While seniors continue to file for bankruptcy in these topics.increasing numbers, this event was designed to providethe Court with an introduction to relevant issues faced People v. Goldilocks Mock Trialby seniors, including financial scams targeting theelderly, financial elder abuse, and the cognitive changes On June 2, 2014, for the fifth consecutive year, overrelated to financial decision-making that can occur 80 third graders from CHIME Charter Elementaryacross an individual’s lifespan. School in Woodland Hills converged upon the San Fernando Valley Division for a mock trial pitting theProfessor Stacey Wood opened the program with an People of the State of California against beloved fairyoverview of cognitive changes that occur in normal tale character, Goldilocks.aging versus those experienced by persons suffering The kids—many wearing business attire—split up into the three courtrooms and took their places as district attorneys, defense attorneys, jurors, sketch artists, bailiffs, recorders, clerks, and judges, and then the trial began. Two compelling witnesses, Baby Bear and Goldilocks, were heard and the verdicts varied. Judge Maureen A. Tighe, assisted by law clerks, externs, and Clerk's Office staff members, were on hand to answer questions and make sure everything ran smoothly. The program concluded with a question and answer session, a tour of chambers, and a photo shoot at Judge Tighe's bench (complete with robe and gavel).United States Bankruptcy Court - Central District of California P a g e 21

Annual Report 2014 race accommodations at the Dodgers’Third Base Club. The runners received breakfast, t-shirts, and picturesClerk’s Office Participates in Veterans from a photo booth.Vocation Rehabilitation and EmploymentProgram Third Annual 5K Run/Walk for DAPIn February 2014, United States Navy veteran Jason On April 26, 2014, the Third Annual Leslie CohenLa Mard Jones began working at the Court through Law 5K Run/Walk was held in Santa Monica tothe Veterans Vocation Rehabilitation and Employment benefit Public Counsel’s Debtor Assistance ProjectProgram. Mr. Jones has a Bachelor of Science degree in (DAP). The event raised $10,000 for the pro bono legalOrganizational Leadership and is expected to complete assistance program. Judges Catherine E. Bauer andhis Master of Arts degree in Management. Mr. Jones Julia W. Brand were among the participants.was assigned to the Human Resources Departmentto work on community outreach projects, the Paths to Bankruptcy Clerks Participate in 5K FamilySuccess Leadership Development Program, and the Fun Run/WalkSuccession Planning project. On March 29, 2014, Administrative Specialist Jan Back Row: Michele Downing, Leanne O’Brien, Jan Zari, Wendy Zari, Facilities Project Coordinator Jennifer Harmon, Jackson, and Jennifer Wright; Front Row: Veronica Magno, Jennifer Facilities Project Coordinator Leanne O’Brien, Harmon, and Sandi Brask Financial Specialist Veronica Magno, and Human Resources Specialist Michele Downing participatedCourt Staff “Run for Justice” in the Angels 5K Family Fun Run/Walk. The race, benefiting the Angels Baseball Foundation, was a fastOn March 8, 2014, Special Projects Manager Sandi and fun 3.1 miles around Angel Stadium of AnaheimBrask, Training Specialist Kimberly Rubal, Legal with nearly 4,000 participants.Before crossing the finishAnalyst Jennifer Wright, Administrative Specialist Jan line, all race participants had a chance to run aroundZari, Facilities Project Coordinators Jennifer Harmon, the outfield of the baseball field and see themselvesand Leanne O’Brien, Financial Specialist Veronica on the huge illuminated scoreboard. Finishers wereMagno, Lead Courtroom Services Deputy Wendy awarded Angels baseball-themed medals and had aJackson, and Human Resources Specialist Michele chance to take pictures inside and around the stadium.Downing participated in the “Run for Justice” at thisyear’s Los Angeles 5K Marathon in support of Public Combined Federal Campaign ParticipationCounsel. Nearly 600 additional participants joined the“Run for Justice” and over 3,300 in the larger race. The In 2014, the Court continued to raise money throughrunners enjoyed a challenging 3.1-mile course around employee participation in and contributions to theElysian Park and Dodger Stadium and were greeted Combined Federal Campaign (CFC), which promoteswith cheers, shiny medals, and refreshments at the and supports philanthropy through its employee-finish line.The race was a fun and rewarding experience focused, cost-efficient, and effective programs. CFCfor a great cause. As guests of Public Counsel, staff is the world’s largest and most successful annualmembers were given the VIP treatment, including pre- workplace charity campaign. Pledges support eligible nonprofit organizations that provide health and human service benefits throughout the world. This year's CFC contributions by division were as follows: Los Angeles - $17,202; San Fernando Valley - $4,355.40; RiversideP a g e 22 United States Bankruptcy Court - Central District of California

Left to Right: Gabriela Huerta, Loretta Moody, Krystal Harris, Wendy Annual Report 2014 Jackson, and Litaun Lewis “Fill a Backpack”- $4,406; Santa Ana - $2,308; and Northern - $800,for a grand total of $29,071.40. In August 2014, the Riverside Division participated in the Riverside County Department of MentalOn November 14, 2014, during the annual CFC drive, Health’s 14th annual “Fill a Backpack” donation drive.two speakers from local charities visited the Riverside As in past years, the Riverside Division staff donatedDivision: Kymberly Cloughesy from Best Friends backpacks, lunch boxes, notebooks, pencils, paper,Animal Society and Marnice Smith from Meeting rulers, dictionaries, markers, erasers and general schoolSeniors Needs Hotline. Ms. Cloughesy discussed Best supplies. Volunteers filled each backpack with $20-$25Friends Animal Society’s mission to save all animals in school supplies. Multiple organizations collected thein American shelters, and Ms. Smith discussed the backpacks and distributed them to young people whoservices that Meeting Seniors Needs Hotline provides are receiving mental health services.to seniors, veterans, and persons with disabilities. OnNovember 21, Loretta Moody from Community COURT EVENTSHealth Charities and Krystal Harris from PAWS/LAvisited the Los Angeles Division for the CFC Kickoff Left to Right: Judge Barry Russell, Narain Kumar, Catherine Eschback,event. Ms. Moody discussed the history and mission of Shane Palmer, Steven L. Lundberg, Ryan Phillip Patterson, and DeanCommunity Health Charities, which unites donors in Erwin Chemerinskythe workplace with trusted health charities. Ms. Harrisdiscussed PAWS/LA’s services,which help low-income Judge Barry Russell Federal Practice Awardsseniors and people disabled by life-threatening illnesseskeep and care for their pets. On November 25, guest On October 2, 2014, the Los Angeles Chapter of thespeakers from City of Hope and Guide Dogs of the Federal Bar Association hosted the presentation of theDesert visited the San Fernando Valley Division. Mary annual Judge Barry Russell Federal Practice Award atKoenig from City of Hope described advances in the the Millennium Biltmore Hotel in Los Angeles withresearch and treatment of cancer, diabetes, and other approximately 200 people in attendance. Every year,life-threatening diseases. Shai Newman from Guide one student from each of the five ABA-accredited lawDogs of the Desert brought in Garmon, an American schools in Los Angeles County is selected to receivePoodle. Mr. Newman explained that while Garmon is the award, which recognizes excellence in the study ofbeing trained to help the blind, the organization also federal practice or procedure. The recipients are chosenhas guide dogs that can assist diabetics by signaling by their law schools. At the lunchtime ceremony,when their blood sugar is low. Judge Barry Russell presents each award recipient with a plaque, a $500 check, and an autographed copy of Judge Russell’s Bankruptcy Evidence Manual. This award has been presented for 32 years. For the pastUnited States Bankruptcy Court - Central District of California P a g e 23

Annual Report 201420 years, Dean Erwin Chemerinsky of the University in assisting hundreds of self-represented parties.of California at Irvine’s Law School has presented Echoing Mr. Vera’s and Ms. Bordeaux’s remarks, Judgea review of Supreme Court cases following the Zurzolo praised the development of self-help servicesceremony. throughout the Central District. Retired Judge William J. Lasarow, for whom the award was named, alsoThe 2014 recipients of the Judge Barry Russell addressed the audience, stating that he was honored toFederal Practice Award were Ryan Phillip Patterson have the award in his name.from Loyola Law School, Catherine Eschback fromPepperdine School of Law, Steven L. Lundberg from Staff members from each of the five organizationsSouthwestern Law School, Shane Palmer from the operating Self-Help Desks in the Central DistrictUniversity of California, Los Angeles School of Law, presented an award to a volunteer serving theirand Narain Kumar from the University of Southern organization.The honorees were: Lindsay McMenamin,California Gould School of Law. Reed Olmstead, Ryan S. Carrigan, Matthew Rosene, and Yi Sun Kim. Left to Right: Lindsay McMenamin, Ryan S. Carrigan, Retired Judge Judges Bauer and Klein Administer Oath to William J. Lasarow, Judge Vincent P. Zurzolo, Matthew Rosene, Reed New Attorneys Olmstead, and Yi Sun Kim On June 2 and December 4,Lasarow Awards 2014, Judge Catherine E. Bauer administered the California BarOn November 20, 2014, Public Counsel’s William J. Attorney’s Oath of Office toLasarow Awards presentation was held in the lobby newly admitted attorneys fromof the Edward R. Roybal Federal Building and U.S. Whittier Law School.Courthouse in Los Angeles. Public Counsel hoststhe annual awards reception to recognize volunteers Additionally, on December Judge Sandra R. Kleinserving the pro se bankruptcy population throughout 2, 2014, Judge Sandra R. Kleinthe Central District. administered the oath to the Loyola Law School students who passed the July 2014 bar exam.Following an opening by Public Counsel’s SupervisingSenior Staff Attorney Magdalena Reyes Bordeaux and Judge Mark D. Houle Judge Neil W. BasonPresident and CEO Hernán Vera, Judge Vincent P.Zurzolo gave remarks at the ceremony. Judge Zurzolo Bankruptcy Judges Preside Overspoke about the significance of gratitude, which, he Naturalization Ceremoniescommented, he was surprised to see absent from thelist of cardinal virtues. He encouraged the practice Four bankruptcy judges from the Central Districtof gratitude as a virtue that transcends religion, presided over naturalization ceremonies in 2014.and thanked the volunteers for their contributions Judges Sandra R. Klein, Scott C. Clarkson, Neil W. Bason, and Mark D. Houle each led the swearing-in of new citizens in ceremonies throughout the year atP a g e 24 United States Bankruptcy Court - Central District of California

Annual Report 2014the National Orange Show, Los Angeles Convention 2013 pro bono report, Access to Justice: Self-RepresentedCenter, and Quiet Cannon. Parties and the Court, where the 2013 Honor Roll also appears.Additionally, on September 18, Judge Klein swore-in new citizens in her hometown of Medford, SPEAKING ENGAGEMENTS AND PROGRAMSMassachusetts at the Franeuil Hall.Chief Judge Peter H. Carroll Judge Maureen A. Tighe Judge Mark S. Wallace Speaks at Financial Lawyers ConferenceCourt Honors Volunteers During NationalPro Bono Celebration Week On January 9, 2014, Judge Mark S.Wallace spoke at the Financial Lawyers Conference program “BankruptcyOn October 20, 2014, the Court hosted a breakfast Tax Issues: Views from the Bench and Beyond.” Thereception for the pro bono volunteers named in its 2014 event was held at the Omni Hotel in downtown LosHonor Roll, which lists all those who have served Angeles. Judge Wallace discussed drafting tax sectionswith pro bono organizations in the Central District of disclosure statements, litigating tax claims into assist parties in bankruptcy during the past 12 bankruptcy court, and Prudential Lines injunctions.months. Each October, in recognition of volunteers’service, the Court requests updates to the Honor Left to Right: Judges Scott C. Clarkson, Erithe A. Smith, and Mark S. WallaceRoll from pro bono organizations. The updated listis published during the American Bar Association’s OCBA Hosts “Meet the Judges” Eventannual National Pro Bono Celebration week, whichtook place this year during the week of October 19. On January 29, 2014, the Orange County Bar Association’s (OCBA's) Commercial Law &Chief Judge Peter H. Carroll, Judges Vincent P. Bankruptcy Section hosted a “Meet the Judges”Zurzolo, Thomas B. Donovan, Maureen A. Tighe, event at the Tustin Banquet Center. Judge Scott C.Sandra R. Klein, and Neil W. Bason, and Executive Clarkson moderated the event, interviewing JudgesOfficer/Clerk of Court Kathleen J. Campbell mingled Erithe A. Smith and Mark S. Wallace. Judges Smithwith the guests, including volunteers, judiciary staff, and Wallace provided insight into their backgroundsand visitors from the U.S.Trustee’s Office. Chief Judge and discussed what led each of them to the bankruptcyCarroll expressed his appreciation for the service of the bench. The judges also expounded on a few of theirpro bono volunteers, and Judge Tighe shared words of pet peeves concerning non-compliance with the Codeinspiration from her recent introduction to Supreme and Local Rules and discussed certain cyclical trendsCourt Justice Sonia Sotomayor, who also champions in bankruptcy case filings. The event was attended bypro bono work, emphasizing the impact volunteers members of the bench, including Judges Theodor C.have made in the Central District. Volunteers received Albert and Catherine E. Bauer.certificates of recognition, “Celebrate Pro Bono” lapelpins and pens, and copies of the Court’s newly released United States Bankruptcy Court - Central District of California P a g e 25

Annual Report 2014 Judge Vincent P. Zurzolo Hosts Review of LBR Revisions at Brown BagJudge Sandra R. Klein Arranges FinancialElder Abuse Program On February 13, 2014, Judge Vincent P. ZurzoloWith the assistance of Public Counsel, Judge Sandra hosted a brown bag lunchR. Klein and University of California, Los Angeles discussion about the recentAnn C. Rosenfield Fellow Julie A. Pollock arranged revisions to the Court’sa financial elder abuse program held on February 3, Local Bankruptcy Rules2014, at Public Counsel’s office in Los Angeles. The (LBRs) and Court Manualprogram covered: dealing with psychological burdens at the Edward R. Roybalof caregiving and caregiver stress, identifying signs of Federal Building and U.S.dementia, understanding options for long-term care, Courthouse. In addition tolegal issues, and caregiver resources in Los Angeles. the substantial number ofSpeakers included Dr. Donna Benton, Ph.D., Research attorneys and Los Angeles Division staff members inAssistant Professor of Gerontology at the University attendance, court staff from the other divisions joinedof Southern California Davis School of Gerontology, the event by videoconference. Judge Zurzolo reviewedand Janet Morris, Director of the Family Caregiver the recent revisions to the LBRs and Court Manual,Project at Bet Tzedek Legal Services and co-author of especially the time- and labor-saving eliminationThe Caregiver Companion. of the requirement for orders to include a Notice of Entered Order and Service List. Judge Zurzolo alsoIEBF Hosts “Ask the Judges Night” provided information about the upcoming changes to the Court’s relief from stay forms as drafted by the BarOn February 4, 2014, Judges Meredith A. Jury, Deborah Rules Advisory Group, a group of volunteer attorneysJ. Saltzman, Scott C. Clarkson and Mark D. Houle representing all aspects of these matters.The discussionparticipated in a panel discussion during the Inland concluded with a question and answer period.Empire Bankruptcy Forum’s (IEBF’s) “Ask the JudgesNight” at the Mission Inn in Riverside, providing an Santa Ana Judges Participate in OCBA Panelopportunity for attendees to engage in a question andanswer dialogue. All attendees were directed to submit On February 27, 2014, Judges Theodor C. Albert,questions prior to the event. On the evening of the Catherine E. Bauer, and Scott C. Clarkson participatedevent, the moderator asked the questions provided by in the Orange County Bar Association (OCBA)attendees and the panel of judges responded. program “Meet the Judges, Part 2.” Judge Clarkson moderated the discussion, interviewing Judges AlbertJudge Sheri Bluebond Speaks at the Beverly and Bauer. The primary purpose of the program was toHills Family Law Study Group give bankruptcy attorneys the opportunity to meet the judges. Topics of discussion were prevailing issues inOn February 5, 2014, Judge Sheri Bluebond chapters 7, 11, and 13, courtroom advocacy and briefparticipated in the Beverly Hills Family Law Study writing, and observations about future trends in theGroup discussion “When Worlds Collide: Bankruptcy practice of bankruptcy law.and its Impact on Domestic Relations and Family Law”at McCormick & Schmick’s in Beverly Hills.P a g e 26 United States Bankruptcy Court - Central District of California

Judge Sheri Bluebond Speaks at the Jonathan Annual Report 2014Club in Downtown Los Angeles presented important recent developments includingOn March 5, 2014, Judge Sheri Bluebond attended plan-confirmation issues, chapter 9 controversiesthe University of Southern California Gould School from California, Detroit, and beyond, and the latestof Law 2014 Real Estate Law and Business Forum at news on the continuing Stern/Bellingham fights in thethe Jonathan Club in downtown Los Angeles. Judge Supreme Court and the Circuits. Judges Maureen A.Bluebond participated in a discussion titled “A 5-Year Tighe and Theodor C. Albert moderated the “363: IsLook-Back: Real Estate Valuation in Workouts and It Worth It?” and “Valuation: Is There Anything Else?”Chapter 11 Bankruptcy Proceedings and Other panel discussions, respectively. Additonally, JudgesValuation Triggering Events.” Maureen A. Tighe, Theodor C. Albert, Richard M. Neiter, Deborah J. Saltzman, Scott C. Clarkson, and“Meet the New Bankruptcy Judges” SBCBA Neil W. Bason judged the “Chapter 11, Soup to Nuts:Presentation Hot Topics in Chapter 11 Cases” debate.On March 6, 2014, the Santa Barbara County Bar Judge Sandra R. Klein Participates in “WomenAssociation (SBCBA) hosted the “Meet the New on the Bench” Panel at USC Law SchoolBankruptcy Judges” presentation in Santa Barbarato introduce Chief Judge Peter H. Carroll and Judge On March 12, 2014, Bankruptcy Judge Sandra R.Deborah J. Saltzman to the local area’s bar association. Klein, along with Circuit Judge Jacqueline H. Nguyen,The lunchtime presentation provided attendees with District Judge Beverly Reid O’Connell, and Chiefan opportunity to learn about the upcoming transition Magistrate Judge Suzanne H. Segal, participatedin the Northern Division. in a panel discussion at the University of Southern California Gould School of Law. The panel was part Left to Right: Judges Theodor C. Albert, Neil W. Bason, Deborah J. two of a series that featured women judges in the area. Saltzman, Richard M. Neiter Speaking in a conversational-style panel, the judgesJudges Tighe, Albert, Neiter, Saltzman, answered questions from students about what life is like as a federal judge. In addition to sharing theirClarkson, and Bason Attend ABI 22nd Annual backgrounds and experience, the judges described their individual philosophies regarding work-lifeBankruptcy Battleground West balance and how best to mentor term and career law clerks.The American Bankruptcy Institute (ABI) held its 22ndAnnual Bankruptcy Battleground West on March 11, The judges offered several methods for clerks to meet2014 at Hyatt Regency Century Plaza in Los Angeles. the demands of their position while still maintaining aJudge Scott C. Clarkson, Judicial Chair, participated in family life, such as flexible schedules and teleworking.the “What’s New? Recent Developments in Business Although each judge had a different philosophy aboutand Municipal Bankruptcies” discussion. The panel how to run chambers, they all expressed agreement on one issue: the importance of maintaining harmony amongst clerks during especially difficult work weeks. Chief Judge Peter H. Carroll Speaks at the State of the Circuit/District On March 14, 2014, the Los Angeles Chapter of the Federal Bar Association hosted its annual “State of the Circuit/District” luncheon at the DoubleTree Hotel in downtown Los Angeles. The event featured CircuitUnited States Bankruptcy Court - Central District of California P a g e 27

Annual Report 2014 IEBF Hosts Panel Discussion on Chapter 7 Assets in RiversideJudge Paul J. Watford, Chief District Judge George H.King, Chief Magistrate Judge Suzanne H. Segal, and On April 8, 2014, the Inland Empire BankruptcyChief Bankruptcy Judge Peter H. Carroll. Over 200 Forum (IEBF) hosted a panel discussion regardingjudges, attorneys, and law clerks were in attendance. disclosed and undisclosed assets in chapter 7 atDuring the luncheon, each of the four judges discussed the Hyatt Place Riverside. Judge Wayne Johnsonthe current state of his or her court, commenting on moderated the discussion and participated on theissues such as budget concerns, newly appointed judges, panel. Other panelists included Chapter 7 Trusteenew and ongoing programs, and strategic plans for the Todd Frealy, Everett Green from the Office of the U.S.future. Trustee, and attorney and trustee Kavita Gupta.OCBF “Parties Gone Wild” Panel After dinner, the panel discussed the recent Supreme Court ruling Law v. Siegel and its implications forOn March 25, 2014, Judge Neil W. Bason took part a trustee’s powers to surcharge a debtor’s exemptionin a panel discussion hosted by the Orange County when that debtor has committed fraud. Mr. FrealyBankruptcy Forum (OCBF) at the Westin Hotel began with comments about the steps a trustee takesin Costa Mesa. Approximately 30 people attended to determine the value of properties and evaluate“Parties Gone Wild,” which addressed sanctions; alter the potential equity the trustee can tap into for theego claims, derivative suits, and pari delicto; claims benefit of the estate. The panel also pointed out sometrading; and the importance of good faith in defending common red flags: understating the value of the home,avoidance actions. Judge Bason and attorneys Janet transferring title of property to a trust, and assertingGertz, Kavita Gupta, and Michael Reynolds engaged incorrect exemptions. Then, various hypotheticalsin a lively discussion, focusing on some of the alter ego involving a debtor and a trustee were posed based on thetopics. The panel also discussed whether actions against facts in Law v. Siegel and the panel examined possiblethird parties could violate the portion of the automatic outcomes. Members from the audience were engagedstay that protects property of the estate, not the debtor. and participated by asking follow-up questions.In particular, the panel considered the question: ifthe bankruptcy estate and a creditor are both seekingrecovery from the same assets, does the automatic stayapply, or should an injunction be issued?Judge Robert N. Kwan Participates in BeverlyHills Bar Association ProgramOn April 3, 2014, Judge RobertN. Kwan participated in theBeverly Hills Bar Association,Bankruptcy Law Sectionluncheon program at Lawry’sRestaurant in Beverly Hills.Judge Kwan discussed “GettingYour Fee Application throughthe Gauntlet of Creditor, Court, and United StatesTrustee Obligations.”P a g e 28 United States Bankruptcy Court - Central District of California

Judge Deborah J. Saltzman Participates in Annual Report 2014LABF Dinner Program Judge Sheri Bluebond Speaks at L’ErmitageOn April 9, 2014, Judge Deborah J. Saltzman, joinedby Peter M. Gilhuly of Latham & Watkins, LLP On April 17, 2014, Judge Sheri Bluebond participatedand Jeffrey C. Krause of Gibson, Dunn & Crutcher in the “Distressed Real Estate Valuations: GettingLLP, was a panelist at the Los Angeles Bankruptcy the Right Valuation and Convincing the Court It’sForum’s (LABF’s) dinner program. Judge Saltzman, Right” discussion hosted by the Southern CaliforniaMr. Gilhuly, and Mr. Krause discussed the varying chapter of the Turnaround Management Association.perspectives concerning issues that arise under Ronald Greenspan, a senior managing director at FTIWARN, FLSA, ERISA, and COBRA in the context Consulting, and Jeffrey Krause, a partner at Gibsonof a bankruptcy case during the “Be WARNed! Risks Dunn & Crutcher, joined Judge Bluebond on theof Liability for Insiders, Secured Lenders and Buyers panel held at L’Ermitage in Beverly Hills.for Unpaid Employment-Related Claims” program. Judges Discuss Case Law and Procedures atJudge Erithe A. Smith Discusses Residential OCBA EventProperty Issues at OCBF Program On April 24,2014,JudgesTheodor C.Albert,CatherineOn April 10, 2014, Judge Erithe E. Bauer, Scott C. Clarkson, and Mark D. HouleA.Smith joined chapter 7 trustees were speakers at an Orange County Bar Associationto discuss residential property (OCBA) panel discussion on the latest developments inissues at the Orange County bankruptcy case law and court procedures. AdditionalBankruptcy Forum (OCBF) topics discussed were best practices for creditorevent “Where’s My Homestead?” claim, student loan, and dischargeability issues. TheTopics included: how the trustees judges introduced newly revised official forms. Otherdeal with a sale of a residence speakers included Chapter 13 Trustee Amrane Cohenin light of Jacobson; whether the and Assistant U.S. Trustee Michael Hauser.trustee can obtain a turnover order of proceeds; andwhether surcharge is dead after Law v. Siegel. Judge Sheri Bluebond Speaks to Beverly Hills Bar AssociationJudge Sheri Bluebond Speaks to the ABA'sBankruptcy Committee On April 24, 2014, Judge Sheri Bluebond joined the BankruptcyOn April 10, 2014, Judge Sheri Bluebond participated Section of the Beverly Hillsin the “Winning Strategies in Chapter 11 Bankruptcy Bar Association at Lawry’sSales: Getting the Most Out of the Section 363 Restaurant. The group discussedSales Process” discussion hosted by the Bankruptcy “Avoiding Powers: Preferences,Committee of the American Bar Association’s (ABA’s) Fraudulent Transfers and OtherBusiness Law Section Committee at the JW Marriott Such Things.”in downtown Los Angeles.United States Bankruptcy Court - Central District of California P a g e 29

Annual Report 2014 Judges Albert and Wallace Address Developments in Chapter 11 Bankruptcy LawJudge Mark S. Wallace Speaks at the ABI’s 32ndAnnual Spring Meeting In May and June 2014, Judges Theodor C. Albert and Mark S. Wallace spoke about the latest developments inFrom April 24 through April 27, 2014, the American chapter 11 bankruptcy case law in a two-part OrangeBankruptcy Institute (ABI) held its 32nd Annual County Bar Association program. On May 22, JudgeSpring Meeting in Washington, D.C. On April 26, Albert spoke at the first part of the program, focusing onJudge Mark S. Wallace joined attorneys Ken Weil debtor representation in chapter 11 cases. On June 18,from Seattle, Washington and Jeff Sklarz from New Judge Wallace spoke at the program’s second installment,Haven, Connecticut to discuss “Preparing for the discussing creditor representation in chapter 11 cases.Metamorphosis: Tax Questions Arising from Changesin Debt from Recourse to Nonrecourse (or vice versa), Judge Mark S. Wallace Speaks at AssociationBankruptcy Discharges, Anti-Deficiency Statutes and of Insolvency and Restructuring Advisors§1111(b).” Annual ConferenceJudge Scott C. Clarkson Speaks at Pro Bono From June 4 through June 7, 2014, the Association ofLuncheon Insolvency and Restructuring Advisors held its 30th annual conference in Denver, Colorado. Judge Mark S.On May 14, 2014, Judge Scott C. Clarkson spoke at Wallace joined a panel discussing taxes and small realthe Federal Bar Association’s Pro Bono Luncheon. estate cases.Those in attendance included members of the bar andjudges from the district and bankruptcy courts. In his Judge Mark D. Houle Discusses Attorney Feeremarks, Judge Clarkson emphasized the critical role Awardsthat the bankruptcy pro se clinics and the reaffirmationclinics play in ensuring due process for pro se debtors. On June 10, 2014, Judge Mark D. Houle, joined by attorneys Michael J. Bujold, Craig Zimmerman, andChief Judge Carroll and Judges Ahart, Brett Ramsaur, was a panelist at the Inland EmpireSmith, Bluebond, Tighe, Neither, Brand, and Bankruptcy Forum’s “Attorney Fee Awards for CounselHoule Participate in the 2014 CBF Annual in Chapter 7, 11, and 13 Proceedings, Secured andConference Unsecured Creditors and Other Parties in Bankruptcy Proceedings” program. The panel discussed cutting-On May 14 through May 16, 2014, Chief Judge Peter edge issues related to attorney fee awards.H. Carroll and Judges Alan M. Ahart, Erithe A.Smith, Sheri Bluebond, Maureen A. Tighe, RichardM. Neiter, Julia W. Brand, and Mark D. Houleparticipated in panels and roundtable discussionsat the 2014 California Bankruptcy Forum (CBF)Annual Conference in Santa Barbara, California.Judge Bluebond hosted the bankruptcy game show“Quotable Quotes.” Chief Judge Carroll served asCBF conference’s judicial liaison for the second year.P a g e 30 United States Bankruptcy Court - Central District of California

Left to Right: Judges Sheri Bluebond, Sandra R. Klein, Julia W. Brand, Annual Report 2014 Deborah J. Saltzman, Scott H. Yun, Richard M. Neiter, Barry Russell, Robert N. Kwan, and Scott C. Clarkson and Supreme Court Update” panel, moderated by attorney Rudy J. Cerone. Judge Zive discussed “EthicsLABF Judges’ Night in Bankruptcy” with attorneys Edward T. Gavin, Richardo I. Kilpatrick, Ted N. Pettit, and moderatorOn June 16, 2014, the Los Angeles Bankruptcy Forum James Patrick Shea.(LABF) hosted its annual Judges’ Night programat the Omni Hotel in downtown Los Angeles. The Judges Russell, Klein, and Zive Speak at 22ndLABF’s yearly program is traditionally well attended, Annual Southwest Bankruptcy Conferenceand the 2014 event was no exception. The audiencewas held in rapt attention by Judges Barry Russell, Judges Barry Russell, Sandra R. Klein, and Gregg W.Sheri Bluebond, Richard M. Neiter, Robert N. Kwan, Zive spoke at the American Bankruptcy Institute’s 22ndDeborah J. Saltzman, Scott C. Clarkson, Sandra R. Annual Southwest Bankruptcy Conference, held in LasKlein, Julia W. Brand, and incoming Riverside Judge Vegas, Nevada from September 5 through SeptemberScott H. Yun. The judges took turns describing cases 7, 2014. On morning of September 5, Judge Zive,they found to be of particular interest or importance. who sits on the conference’s advisory board, discussedJudge Bluebond guided the discussion as moderator. “Current Developments in Business Bankruptcy” with bankruptcy attorneys Peter J. Gurfein, CecilyJudge Meredith A. Jury Speaks at cdcbaa A. Dumas, and Robert L. Eisenbach, III. The panel reviewed “issues ranging from bankruptcy courts’On July 19, 2014, Judge Meredith A. Jury, joined by jurisdiction, venue and constitutional authority toCircuit Judge Richard Paez, Professor John A.E. other practical issues affecting estate professionals, planPottow from University of Michigan School of confirmation and enforcement, avoidance actions andLaw, and M. Jonathan Hayes, Esq., participated in other bankruptcy-related litigation.” That afternoon,the “In re Bellingham: From the Insiders” discussion Judge Russell brought his considerable expertise toat Southwestern Law School in Los Angeles. The the “Anatomy of Evidentiary Proceedings” luncheondiscussion was part of the Central District Consumer program, where he reviewed the rules of evidenceBankruptcy Attorney Association’s (cdcbaa’s) First with attorneys James Patrick Shea, R. Scott Williams,Annual James T. King Bankruptcy Symposium. Robin E. Phelan, and Michael P. Richman. During the conference’s plenary session “Ethics: Professionalism”Judges Bason and Zive Join Panels at Fourth Judge Klein discussed professional conduct withABI Bankruptcy Workshop attorneys Steven M. Berman and Edward T. Gavin.On August 16, 2014, Judges Neil W. Bason and Judge Sandra R. Klein Addresses New CitizensGregg W. Zive participated in panel discussions atthe American Bankruptcy Institute’s (ABI’s) Fourth On September 18, 2014, as a part of Constitution DayBankruptcy Workshop. Judge Bason joined bankruptcy and Citizenship Day, Judge Sandra R. Klein addressedattorneys Kenneth H. Brown, Simon Klevansky, and 315 new citizens during a naturalization ceremonyLynnette R. Warman on the “Bankruptcy Litigation at Faneuil Hall in her hometown of Medford, Massachusetts. Judge Klein reminded the new citizens of all of the privileges and freedoms they will enjoy as citizens, including the freedom of religion and the freedom of speech. She noted that regardless of where the new citizens came from, or what ethnicity they might be, if they work hard and persevere, the opportunities available to them, their children and their grandchildren would be limitless.United States Bankruptcy Court - Central District of California P a g e 31

Annual Report 2014 Osborne of Rust Omni, and Mark S. Shinderman of Milbank, Tweed, Hadley & McCloy.During her remarks, Judge Klein quoted a numberof American presidents, including President John Judges Klein and Tighe Present BankruptcyF. Kennedy, who stated, “Immigrants have enriched 101and strengthened the fabric of American life.” Sheconcluded with the prophetic words of President John On October 15, 2014, Judges Maureen A. TigheQuincy Adams: “You will never know how much it and Sandra R. Klein presented “Bankruptcy 101 andcost my generation to preserve your freedom. I hope the Resources Provided by the Court” to the WISEyou will make good use of it.” & Healthy Aging Financial Abuse Specialist Team (FAST) in Monterey Park.FAST is a multi-disciplinaryJudge Catherine E. Bauer Speaks at Co-Sponsored group of professionals who investigate elder abuse orBankruptcy Forum and Law School Event provide services to victims. Attendees included Adult Protective Services, ombudsmen, law enforcement,The Orange County Bankruptcy Forum and Chapman attorneys from the district attorney and city attorneyUniversity Fowler School of Law co-sponsored offices, bank investigators, victim witness assistance,“Let’s Make a Deal!” on September 20, 2014. Judge legal aid, and case managers. This team is included in aCatherine E. Bauer spoke on the topic of “Mediation study the Library of Congress is conducting on teamsand Negotiation: Tips and Techniques from Experts.” that focus on financial abuse and exploitation. A few ofThe event was held at Chapman University School of their researchers were at the meeting to interview theLaw. FAST team that same day.Judges Albert and Wallace Participate in the Judge Scott C. Clarkson Participates in BrownOCBA September Meeting Bag ProgramOn September 24, 2014, Judges Theodor C. Albert On October 16, 2014, a brown bag program titled “Theand Mark S. Wallace participated in the Orange Unscheduled Lawsuit” was sponsored by the OrangeCounty Bar Association (OCBA), Commercial Law County Bankruptcy Forum. Judge Clarkson spokeand Bankruptcy Section’s September Meeting at the at the program, held in the Ronald Reagan FederalHilton Orange County in Costa Mesa. Founding Building. The topics were: When is a debtor’s claimDean and Distinguished Professor from the University property of the estate? Can the debtor prosecute anof California Irvine School of Law, Erwin Cherminsky, unscheduled claim lawsuit? If the debtor is barred fromdiscussed “The Supreme Court and the Future of proceeding with this lawsuit, can he “fix” the problem?Bankruptcy” in light of the Supreme Court decisionsin In re Bellingham and Stern v. Marshall. Judges Albert Judges Smith, Albert, Bauer, Saltzman,and Wallace provided commentary and answered Clarkson and Yun Speak at OCBF Judges’Nightquestions from the audience. On October 23, 2014, approximately 70 membersJudge Sheri Bluebond Participates in LABF’s of the Orange County bankruptcy bar attended theDinner Program Orange County Bankruptcy Forum’s (OCBF’s) annual judges’ night event. Held at the Westin Hotel in CostaOn October 6,2014,Judge Sheri Bluebond participated Mesa, the panel discussion was titled “Judges’ Night:in the Los Angeles Bankruptcy Forum’s (LABF’s) 25th Differing Perspectives on Important Legal Issues” andanniversary dinner program at the Omni Hotel in moderated by Jess Bressi.downtown Los Angeles.In a special presentation,JudgeBluebond discussed the state of the Court and whatto expect in the coming year. Other panelists includedHoward M. Ehrenberg of SulmeyerKupetz, BrianP a g e 32 United States Bankruptcy Court - Central District of California

Left to Right: Judges Erithe A. Smith, Deborah J. Saltzman, Scott C. Annual Report 2014 Clarkson, Theodor C. Albert, and Scott H. Yun For State and Bankruptcy Courts” discussion. TheThe panel, comprised of Judges Erithe A. Smith, program was moderated by Christian Cooper ofTheodor C. Albert, Catherine E. Bauer, Deborah Public Counsel and co-sponsored by Central DistrictJ. Saltzman, Scott C. Clarkson, and Scott H. Yun, Consumer Bankruptcy Attorney Association (cdcbaa)discussed jurisdictional issues after Stern v. Marshall, and the Court.the fate of pensions and healthcare benefits in municipalbankruptcies, trustee and consumer issues, mortgage Judge Robert N. Kwan Speaks at the Californiastrip-offs in chapter 7 and “chapter 20” cases, issues in Tax Bar & the California Tax Policy Conferenceasset sales, and other issues. The judges also engagedin a spirited debate regarding trustee compensation in The 2014 Annual Meeting of the California Taxconnection with short sales and carve-outs in chapter Bar & the California Tax Policy Conference was7 cases. held at the Loews Coronado Bay in San Diego from November 6 through November 8, 2014. BankruptcyIEBF Hosts Evening with Judge Scott H. Yun Judge Robert N. Kwan was among the prestigiousand Staff speakers and attendees. On November 8, Judge Kwan, joined by U.S. Court of Federal Claims Judge FrancisOn November 4, 2014, the Inland Empire Bankruptcy M. Allegra, U.S. Tax Court Judge Peter J. Panuthos,Forum (IEBF) hosted an evening with Judge Scott H. Craig Houghton of Baker Manock & Jensen, PC, andYun and his staff at the Hyatt Place Riverside. After Haleh Naimi of Advocate Solutions, discussed thedinner, “a spirited discussion of hot topics in consumer relative merits of litigating a case involving a taxpayer’schapter 7 proceedings” took place with Judges Scott H. liability for federal tax in the four different courts thatYun and Meredith A. Jury, Chapter 7 Trustee Todd A. are available to taxpayers.Frealy, Esq., and attorney Jenny L. Doling. The paneldiscussed the ability of trustees to sell over-encumbered Judge Scott C. Clarkson Speaks at 11th Annualassets, protect homestead exemptions, proper service of Bankruptcy Ethics Symposiumlien avoidance motions, and the unbundling of legalservices. On November 21, 2014, Judge Scott C. Clarkson, joined by Professor of Law Nancy B. Rapoport andJudge Julia W. Brand Discusses Settlement attorneys Stella A. Havkin, Ariel Leichter-Maroko,Agreements J. Scott Bovitz, M. Erik Clark, Leon D. Bayer, and Gillian N. Brown, participated in the Los AngelesOn November 4, 2014, Judge Julia W. Brand, joined Chapter of the Federal Bar Association’s 11th Annualby attorneys Stella Havkin, Raymond H. Aver, and Bankruptcy Ethics Symposium. The panel discussedChristian Cooper, participated in Public Counsel’s “Best Practices for Small Law Firms with Limited“Settlement Agreements: What You Need to Know Budgets: E-mail, Protocol and Disclaimers; Client Intake Sheets and Other Client, Communications; Office Procedures; Record Keeping and Destruction; Resources; Electronic Filing Nightmares; and Appearance Counsel,” “Representing Spouses in Bankruptcy: Beware of Ethical Land Mines and Conflicts,”and “An Ethics Conversation with Professor Nancy B. Rapoport” at the Edward R. Roybal Federal Building and U.S. Courthouse in Los Angeles.United States Bankruptcy Court - Central District of California P a g e 33

Annual Report 2014 District Consumer Bankruptcy Attorney Association (cdcbaa), Turnaround Management Association SoCal,Judges Smith, Albert, Bauer, Wallace, and the Bankruptcy Section of the Beverly Hills BarClarkson Attend Judges’ Night Hosted by the Association, and the Commercial Law and BankruptcyOCBF and OCBA Sections of the Los Angeles County Bar Association.On December 3, 2014, Judges Erithe A. Smith, Judges Vincent P.Zurzolo,Sheri Bluebond,Maureen A.Theodor C. Albert, Catherine E. Bauer, Mark S. Tighe, Richard M. Neiter, Robert N. Kwan, CatherineWallace, and Scott C. Clarkson attended a Judges’ E. Bauer, Scott C. Clarkson, Sandra R. Klein, Julia W.Night program hosted by the Orange County Brand, Scott H. Yun, Geraldine Mund, and ExecutiveBankruptcy Forum (OCBF) and the Orange County Officer/Clerk of Court Kathleen J. Campbell attendedBar Association (OCBA) held at Andrei’s Restaurant the gala that included former and current law clerks,in Irvine, California. Retired Judge John E. Ryan court staff, attorneys, staff from the U.S. Trustee’spresented the Peter M. Elliott Award to attorney Office, accountants and numerous bankruptcy andDonald W. Sieveke. The event also raised donations insolvency professionals. John N. Tedford IV, partnerfor Armed Services YMCA at Camp Pendleton. at Danning, Gill, Diamond & Kollitz, LLP and former law clerk to Judge Ahart, presented JudgeJudges Tighe, Kwan, and Brand Participate Ahart with a memento on behalf of all the sponsoringin ABI’s 26th Annual Winter Leadership organizations, as recognition of his contribution to theConference legal community. Judges Mund and Zurzolo delivered heartfelt speeches that highlighted Judge Ahart as aThe American Bankruptcy Institute (ABI) hosted well-respected colleague and member of the Judiciary.its 26th Annual Winter Leadership Conference In his closing “thank you” speech, Judge Ahart thankedfrom December 4 through December 6, 2014 in La Congress for authorizing the judgeship position inQuinta. On December 5, Judge Julia W. Brand joined 1988, the U.S. Court of Appeals for the Ninth Circuita panel to discuss “Best Practices in Oral and Written that appointed him, his wife and family, externs andAdvocacy from the Perspective of New Judges” and law clerks, and the bar.Judge Robert N. Kwan participated in the “ResolvingTax Issues in Bankruptcy Court” panel discussion. Judge Ahart was appointed on April 4, 1988 andAlso, Judge Maureen A. Tighe participated in the reappointed on April 4, 2002. He is retiring effective“Individual Chapter 11 Confirmation Mock Hearing” January 2, 2015 but will serve as a recalled bankruptcyon December 6. judge beginning on January 3, 2015.LABF Honors Judge Alan M. Ahart at Annual Clerk’s Office Staff Facilitates LALSA andHoliday Party SFVLSA PresentationsOn December 8, 2014, at On May 20, 2014, Lead Courtroom Services Deputythe Los Angeles Bankruptcy Wendy Jackson and Team Leader Sharon SampsonForum’s (LABF’s) Annual addressed the Los Angeles Legal SecretariesHoliday Party, a tribute was Association (LALSA). Ms. Jackson and Ms. Sampsonpaid to Judge Alan M. Ahart provided a well-informed presentation on basic Localfor his retirement after almost Bankruptcy Rules, including tips to avoid rejected27 years on the bench. The orders, as well as Case Management/Electronicevent was held at Mr. C Beverly Case Files (CM/ECF) tips for filing documents.Hills in Los Angeles and co- The event, held at Taix French Restaurant in Lossponsored by the Financial Angeles, was thoroughly enjoyed by approximately 25Lawyers Conference, Central legal secretaries. Leaders of the San Fernando ValleyP a g e 34 United States Bankruptcy Court - Central District of California

Annual Report 2014Legal Secretaries Association (SFVLSA) were alsopresent at the LALSA Meeting and asked staff toattend a meeting of the SFVLSA to provide the samepresentation.On August 12, 2014, Ms. Jackson and Ms. Sampsonmade the same presentation to the SFVLSA at IlTiramisù Ristorante in Sherman Oaks. More than 20legal secretaries from the SFVLSA chapter attendedthe presentation on bankruptcy tips and tricks andavoiding rejection of orders and other documents. Likethe legal secretaries of LALSA, the SFVLSA chapterwas grateful to the presenters and enjoyed meetingbankruptcy court employees in person. Ms. Jacksonand Ms. Sampson were extremely proud to play theirpart in meeting the goals of the Court’s new StrategicPlan, Issue Five: Public Understanding, Trust, andConfidence.Clerk’s Office Staff Shares Information withthe NALS of Orange CountyOperations Supervisor Gloria Allen and CourtroomDeputy Tina Duarte spoke at a meeting of theNational Association of Legal Secretaries (NALS) ofOrange County. NALS is dedicated to enhancing thecompetencies and contributions of members in thelegal services profession.The night began with dinner and memberintroductions. After dinner, Ms. Allen and Ms.Duarte provided information regarding current LocalBankruptcy Rules changes and additions, includingthe elimination of the Notice of Entered Order andService List, reminded the legal professionals about theuse of Quick Response (QR) codes, and Ms. Duartedemonstrated how to download courtroom calendars.Ms. Allen and Ms. Duarte were grateful for theopportunity to provide the legal community withupdates and tips.United States Bankruptcy Court - Central District of California P a g e 35

Annual Report 2014KEY STUDIES, ACTIVITIES, AND ACCOMPLISHMENTSJUDICIARY BUDGET CHALLENGES FOR expected across-the-board budget cuts in subsequentTHE COURT years, significant shortfalls are expected in FY 2016 and beyond.In 2014, the Judiciary continued to operate in aconstrained budget climate. For court units, this meant ELECTRONIC SELF-REPRESENTATIONoperating under a Continuing Resolution (CR). In SOFTWARE OFFERED TO PRO SE DEBTORSJanuary, the President of the United States signedthe “Consolidated Appropriations Act of 2014.” The On March 31, 2014,Executive Committee of the Judicial Conference the Central Districtapproved final financial plans for FY 2014 and courts of California installedreceived the balance of their FY 2014 allotments on the Electronic Self-February 18. Although funding in the final financial Representation (eSR)plan for court allotments represented a net increase of software successfully5.8 percent above FY 2013 allotment levels, total FY in the live environment. eSR is an online tool to help2014 court allotments were still approximately $100 individuals complete a chapter 7 bankruptcy petitionmillion below FY 2012 allotments and the equivalent when they have decided to file bankruptcy withoutof FY 2008 allotment levels on a national basis. Locally, an attorney. The implementation of eSR has beenthe FY 2014 appropriation resulted in a 10.6 percent and continues to be a collaborative project with thereduction to the Court’s budget allotments. New Jersey and New Mexico bankruptcy courts and the Administrative Office of the U.S. Courts (AO).Throughout 2014, the Court continued to exercise Judge Maureen A. Tighe spearheaded the Court'scaution with its expenditures and aggressively pursued participation leading the local effort with court staffcost-containment measures. In addition, the Court in the Pathfinder Working Group. Court staff workedwas able to secure supplemental funding to mitigate over the weekend to ensure the software was ready andthe deficit through shared administrative services that no significant glitches would appear for first-timeand partnering with the Administrative Office of the users.U.S. Courts (AO) on national projects and initiatives.With continued prudent spending and conservation With Judge Tighe shepherding the local effort overof resources, the Court was able to end the fiscal year the preceding three years, the Court reached a majorwithout the necessity of layoffs or furloughs. milestone on April 16, when a pro se debtor submitted an electronic bankruptcy petition in the Los AngelesDespite the Court’s ongoing cost-containment efforts, Division. The filing marked the inaugural use ofthe budget outlook for FY 2015 remained uncertain. the eSR software nationwide. The following weekThe Court received partial year allotments under the Riverside Division’s self-help clinic became theinterim financial plan on September 30 and the Court second to offer eSR to its visitors. Public Counsel inbegan FY 2015 with a CR, which remained in effect Los Angeles, and Public Service Law Corporation inthrough December 11, 2014. Nationally, the interim Riverside, each assisted the Court by pre-screeningfinancial plan increased funding for court allotments for visitors with computer proficiency who mightby approximately 3.9 percent over FY 2014 levels but be interested in using eSR for preparing bankruptcywas still approximately 7.1 percent below FY 2015 petitions electronically.full formula requirements. As anticipated, the Court’sbudget was reduced by 5.9 percent, representing a loss After making several improvements based on feedbackof $929,249 in salary funding alone. from its initial users, the Court soft-launched eSR software on the internet for general access by theGiven the Court’s decrease in filings, anticipated public on September 24. While eSR can be used toincrease in shared administrative services cut, andP a g e 36 United States Bankruptcy Court - Central District of California

prepare chapter 13 petitions, the Court has chosen to Annual Report 2014focus its initial efforts on the preparation of chapter 7petitions. saved to a computer, forwarded, or retained in the email for viewing at any time. Debtors can register forIn addition to eSR’s internet launch, the Court DeBN at any time during their case, and there are noinstalled the software in the self-help desk areas in the logins or passwords to remember.remaining three divisions. Staff members were trainedon how the eSR software works and on how to upload While DeBN was primarily established as a noticingincoming eSR petitions. Attorneys volunteering in the improvement for debtors, DeBN also reduces BNCself-help clinics were also provided training and an costs for debtor noticing for up to 90% over the life ofoverview of eSR and case processing. This ensures that a case.pro bono attorneys staffing the clinics are prepared toanswer any questions debtors using the eSR software With DeBN, debtors only receive the orders andmay have. court-generated notices by email that they otherwise would have received at a mailing address (e.g., 341(a)While expanding the availability of eSR to court users, Meeting of Creditors notice and Order of Discharge).the Court continues to monitor eSR, collect user A debtor who requests DeBN consents only to servicefeedback and collaborate on upgrades to improve the of orders and court-generated notices by email. Servicesoftware, as needed. requirements for all other litigants do not change with DeBN.CENTRAL DISTRICT PERMANENTLY ADOPTSDEBTOR ELECTRONIC BANKRUPTCY Since the DeBN pilot program began on February 24,NOTICING over 1,300 DeBN activation forms were filed district- wide in 2014. Approximately 90% were filed in-In September 2014, the Central person, while the other 10% were filed electronically byDistrict’s Debtor Electronic debtors’ attorneys.Bankruptcy Noticing (DeBN)pilot was adopted by the Board of CLERK’S OFFICE EXPANDS SHAREDJudges as a permanent program. Three months later, ADMINISTRATIVE SERVICESthe Administrative Office of the U.S. Courts (AO)announced the availability of DeBN program to Since 2013, when the Court created a Sharedbankruptcy courts across the nation. Administrative Services (SAS) offerings team to implement a judiciary cost-containment policy, moreDeBN is a free and voluntary program that enables than 27 service agreements have been negotiated withdebtors to receive electronic noticing through the courts and federal agencies. The Court’s SAS teamBankruptcy Noticing Center (BNC).The program was collaborated in 2013 to design service offerings andcreated to meet the needs of the growing segment of create a process by which the Court would be ablethe population who depend upon mobile technology to offer services as an economical way to maximizefor sending and receiving correspondence. When a sharing resources among courts and sister agencies.DeBN account is activated by a debtor, the BNC sends The Court set up a webpage on its internal websitethe debtor’s court notices and orders in emails as PDF listing diverse service offerings, including trainingattachments. services, space planning, and web design. SAS service offerings were grouped into three strategic lines ofIf debtors activate their DeBN accounts before five business: Human Capital, Information Technology,o’clock on the day they file their cases, the BNC will and Space and Facilities. Services were offered to courttransmit their court notices by email the same day. units on a cost-reimbursable basis established throughDebtors are less likely to misplace their court notices a Memorandum of Understanding (MOU). Individualbecause the emailed PDF attachments can be printed, service offerings were posted to JShare, the Judiciary’s SAS website, with a link to the Court’s SAS webpage and catalog.United States Bankruptcy Court - Central District of California P a g e 37

Annual Report 2014In 2014, the Court completed 15 SAS agreements Bankruptcy Court for the Eastern District ofwith courts and sister agencies near and far, worth California entitled, “Developing Objectives-more than $80,000 in revenue for the fiscal year ending based Training.”September 30, 2014. To help market the Court’sShared Administrative Services, representatives from Website Developmentthe Clerk’s Office hosted an information table at theNational Conference of Bankruptcy Clerks where • The Court’s resident website designer, Trainingflyers, a Quick Response (QR) code linking to the Specialist Kimberly Rubal, continued to assistCourt’s Shared Services webpage, and complimentary other courts with the transition of their websitespostcards were provided to those in attendance. to the new national Drupal template. During 2014, Ms. Rubal assisted the U.S. BankruptcyThe following shared services agreements were for the District of Oregon with web designnegotiated in 2014: using the Drupal template and website content migration. She also provided a brief consultationAutomation Training to the U.S. Bankruptcy Court for the District of Montana. • On June 3, Information Technology and Training Manager Padraic Keohane led an Adobe Acrobat Support Services Fillable Forms WebEx training for the U.S. Bankruptcy for the District of Oregon. • On June 30, the Court entered into an extension of the agreement with the Administrative Office • On June 17 and June 18, Mr. Keohane provided of the U.S. Courts (AO) for the Court’s software on-site Microsoft Word training to the U.S. developers to work on the Next Generation Bankruptcy Court for the Western District of (NextGen) Case Management/Electronic Case Washington. He also provided a WebEx make- Files (CM/ECF) remotely. up class at the end of July for those who were unable to attend the on-site training. • At the beginning of July, Internal Controls Analyst Jose Ramirez provided internal • Throughout 2014, Mr. Keohane assisted the U.S. auditing services to the U.S. District Court for Bankruptcy Court for the Northern District the Central District of California. of Georgia, both on-site and remotely, with converting templates and providing training • On July 9, the Court entered into an MOU with for converting documents from WordPerfect to the U.S. District Court for the Central District Microsoft Word. of California to provide IT and facility support services for Magistrate Judge Louise A. LaMothe • Locally, throughout 2014 Mr. Keohane also in Santa Barbara through September 30. assisted the U.S. District Court for the Central District of California with Microsoft Office • On July 18, the Court entered into an MOU training, including Word, PowerPoint, and Excel. with the U.S. Bankruptcy Court for the District of New Mexico to provide video productionManagement and Leadership Training services. Personnel from the Court updated educational videos posted on New Mexico’s • On May 15, Training Specialist Tina Sandoval website for pro se debtors.The first video updated traveled to Louisiana to provide performance the filing fee information to reflect this year’s management training to the U.S.Probation Office fee increase. and Pretrial Services for the Eastern District of Louisiana. • On September 8 through September 10, Mr. Keohane traveled to Sacramento, California and presented a training program to the U.S.P a g e 38 United States Bankruptcy Court - Central District of California

COURT PUBLISHES THIRD ANNUAL Annual Report 2014PRO SE REPORT Ann C. Rosenfield Fellow Julie A. Pollock during herPublished September 2014, 2013 fellowship, showed how self-represented partiesthe Court’s 2013 pro se were dispersed throughout the Central District. Cross-report, Access to Justice: referencing United States Census data, the mapsSelf-Represented Parties also indicate a correlation between the locations ofand the Court, addresses bankruptcy petition preparers and concentrations ofa 24.7 percent filing rate Spanish-speakers in the Central District.of self-represented partiesin the Central District and The 2013 pro se report shows that the marked decline indescribes the commitment total bankruptcy filings, resulting in cuts to the Court’sof the Court and pro bono budget in recent years, has been accompanied by only aorganizations. Judge comparatively slight decrease in the rate of pro se filings.Maureen A. Tighe, chair This underscores the continuing need to address self-of the Pro Se Committee, represented parties and to do so more efficiently withspearheaded the Court’s third annual report on the Central a declining number of court staff. By continuing withDistrict’s self-represented filers. The report incorporates its reporting efforts and evaluating the data availablestatistics on assistance provided to this population by the on self-represented parties, the Court may target itslocal pro bono organizations serving each of the Court’s resources toward communicating with underservedfive divisions. communities about free and low cost resources before needy individuals spend too much or are defraudedAs discussed in the report, the Court and local pro when seeking bankruptcy assistance.bono organizations continued their efforts to improveservice to self-represented filers. The Court offered MEDIATION PROGRAMadditional online resources for self-represented partiesand outreach to pro bono volunteers in 2013, and pro The Court established its Bankruptcy Mediationbono organizations continued providing guidance to Program in 1995 to provide the public with effectivehundreds of self-represented parties who could not and reliable assistance in resolving disputes withoutafford legal counsel. The assistance provided by these the time and expense associated with litigation. Theorganizations was made possible, in part, by continued mediation panel consists of attorneys and non-fundraising efforts and awards such as the Earle Hagen attorney professionals such as accountants, real estateMemorial Golf Tournament, bar association holiday brokers, physicians, and professional mediators, and inparties, and grants from the American College of 2014, had 184 members. The Court continues to addBankruptcy and the American College of Bankruptcy new members on an ongoing basis as mediators whoFoundation. Additionally, the Central District’s have joined the panel in 1995 retire. The MediationAttorney Admission Fund provides essential funding Program entered in its 19th year in 2014 and remainsto pro bono organizations serving self-represented the largest and most robust bankruptcy mediationbankruptcy filers in the Central District. program in the nation.A new feature in the 2013 report is a collection of From the program's inception in 1995 through themaps depicting the distribution of pro se filers, self- end of 2014, the judges assigned 5,310 matters tohelp resources, income levels, the Spanish-speaking mediation. 4,573 of those matters concluded and 2,905population, and bankruptcy petition preparers in of the concluded matters were settled. The settlementrelation to court locations in the Central District. The rate has held steady over the years at a very impressivemaps,prepared by University of California,Los Angeles rate of 63 percent.United States Bankruptcy Court - Central District of California P a g e 39

Annual Report 2014 substantial input from their respective bar associations in response to the Court’s request for ideas toINTERNAL CONTROLS AND AUDITS improve court operations. The exercise resulted in numerous ideas and suggestions involving practicesOn an annual basis, the Court conducts a self- and general case management issues. Many of theassessment of internal controls to ensure compliance suggestions were adopted by the Court, and in onewith policies promulgated by the Administrative instance, submitted to the Administrative Office ofOffice of the U.S. Courts (AO) and the Court itself. the U.S. Courts (AO) for national consideration andThe intended purpose of this review is to examine subsequent implementation. The Bar Advisory Boardand provide an objective analysis of each department’s also recruited volunteers from the local bar to assist inoperations in an effort to help management improve the Court’s effort to update its standards for chapterefficiency, ensure good stewardship, and maintain 7 limited scope of appearance in light of In re Seares.effective financial controls. This review is essential insafeguarding the public’s trust. CHANGES TO FEDERAL COURT MISCELLANEOUS FEE SCHEDULEIn 2014, the Clerk’s Office conducted a self-assessmentfor the following areas: The Judicial Conference of the United States approved changes to the federal court miscellaneous • Financial Management fee schedules. Beginning June 1, 2014, the filing fees • Procurement for bankruptcy petitions are as follows: chapter 7, • Property Management $335; chapter 9, $1,717; chapter 11, $1,717; chapter • Human Resources 12, $275; chapter 13, $310; and chapter 15, $1,717. • Information Technology/Security The filing fee for a complaint is $350. Effective • Operations (All Divisions) December 1, the miscellaneous fee schedule was also updated to include a $25 fee for filing a motion toBAR ADVISORY BOARD PROVIDES VITAL redact a previously filed document, and a $207 fee forINPUT authorization of direct appeal (or cross appeal) from a bankruptcy court to a court of appeals. Public NoticesThe Court’s Bar Advisory Board was initially were issued for both fee schedule changes.formed in 2009 and meets quarterly with the ChiefBankruptcy Judge, other interested judges, and the To reflect these changes, the Clerk's Office updatedExecutive Officer/Clerk of Court. The 2014 members its cashiering system, the Court's Abbreviated Feeof the Bar Advisory Board included: Peter Anderson, Schedule, and references to the fees in the CourtU.S. Trustee; Jeff Krieger, Los Angeles County Bar Manual.Association, Commercial Law and BankruptcySection; Andrew Goodman, San Fernando Valley Bar PACER CHANGE TEMPORARILYAssociation, Business Law and Bankruptcy Section; AFFECTS ACCESS TO LOS ANGELESKeith Higginbotham, Central District Consumer CASES CLOSED PRIOR TO 2001Bankruptcy Attorney Association (cdcbaa); MarjorieJohnson, Inland Empire Bankruptcy Forum; Theodore On August 11, 2014, the Public Access to CourtA. Cohen, Los Angeles Bankruptcy Forum; Chris Electronic Records (PACER) Service Center made aMinier, Orange County Bankruptcy Forum; and change to the PACER architecture in preparation forAnerio Altman, Orange County Bar Association, the implementation of the Judiciary’s Next GenerationCommercial Law and Bankruptcy Section. (NextGen) Case Management/Electronic Case Files (CM/ECF). When fully implemented, NextGen willThe Bar Advisory Board provides a conduit for the provide improvements for users including a singleCourt to disseminate information to the bar andobtain feedback on various issues of mutual concern.In 2014, the Bar Advisory Board members providedP a g e 40 United States Bankruptcy Court - Central District of California

sign on for PACER. As a result of this change, Los Annual Report 2014Angeles Division cases closed prior to February 1,2001 were temporarily in accessible through PACER. whistleblower protection to employees of the Judiciary.Information regarding these cases remained available The Federal Judiciary provides communicationfree of charge by calling the Court’s toll-free Call Center channels through which court employees may reportor using the online chat feature. Such information violations of law or suspected fraud, waste, abuse,included debtor name, address, attorney of record, or mismanagement of funds by employees or bycase number, case opening date, case closed date, entities doing business with the Court (known asdisposition (e.g., dismissed or discharged), trustee, etc., “whistleblowing”). However, until now, the Judiciaryand is identical to the information about these cases did not provide a specific remedy for employees who facethat was previously available through PACER. All Los adverse personnel actions as a result of whistleblowing,Angeles Division cases closed on or after February 1, such as that provided to Executive Branch employees2001 remained on PACER, as were many earlier case in the Whistleblower Protection Act of 1989, 5 U.S.C.records from divisions other than Los Angeles. By the § 2302 (b)(8). The amended plan was communicatedend of December 2014, the Court’s programmers, in to all employees and a special section of the Intranetcollaboration with the Administrative Office of the was deployed to house the procedures and forms.U.S. Courts (AO), restored PACER access to the LosAngeles cases closed prior to February 1, 2001. AO FEATURES COURT STRATEGIC PLAN ON JNETCHANGES TO NATIONAL BANKRUPTCYFORMS IMPLEMENTED The Administrative Office of the U.S. Courts (AO) featured the Court’s Strategic Plan for 2014 – 2019The Court substantially updated its Local Bankruptcy on the JNet as a model long-range plan for bankruptcyRules (LBRs) forms for Relief From Stay (RFS). To courts. Along with the strategic plans of the bankruptcydraft the RFS forms, the Court’s Rules Committee courts for the District of Maryland and the Southernformed the Bar Rules Advisory Group (BRAG),a group District of New York, it is one of three such modelsof volunteer attorneys from throughout the Central featured on the website.District that represented both debtors and creditors.Some elements of the Court’s RFS extraordinary CENTRAL DISTRICT CONTINUESrelief attachment forms were incorporated into the ARCHIVING PROJECTupdated RFS forms, and the RFS extraordinary reliefattachment forms were retired. The Court’s chapter The Los Angeles and Northern Divisions continued11 disclosure statement and chapter 11 plan forms to archive records to free up valuable space. Includedwere updated to refer to exhibits that are produced in the shipment from the Los Angeles and Northernusing a new exhibit worksheet in Excel format. The Divisions to the National Archives and RecordsExcel spreadsheet includes macros to standardize and Administration were 480 boxes of closed cases andsimplify the process of creating the exhibits. The Court adversary proceedings and 27 boxes of audio recordingsalso began the process of renumbering its local “Other” of court proceedings.forms with LBR numbers tied to applicable LBRs.Additional new and revised forms were introduced in Additionally, the Los Angeles, San Fernando Valley,June and December 2014. and Northern Divisions shredded 1,460 boxes of petitions, subsequent documents, claims, financialEMPLOYMENT DISPUTE RESOLUTION records, paper documents, old transcripts that werePLAN AMENDED already disposed of by Federal Records Center, and miscellaneous folders. Along with these paper records,On March 17, 2014, the Court’s Employment Dispute the Court was able to dispose of shelving units, storageResolution (EDR) plan was amended to extend boxes, and file cabinets, significantly increasing the total volume of storage space.United States Bankruptcy Court - Central District of California P a g e 41

Annual Report 2014 SUPREME COURT ORAL ARGUMENT BROADCAST TO COURT STAFF Anthony Gomez and Roland Blanco On January 24, 2014, theCOURT STAFF MEMBERS RECEIVE Court broadcasted an audioAWARDS FROM U.S. PROBATION OFFICE recording of oral argument in the U.S. Supreme Court toOn August 27, 2014, Executive Officer/Clerk of court staff in all five divisions.Court Kathleen J. Campbell, Space Planning/Office A case originating in JudgeServices Manager Roland Blanco, and Administrative Thomas B. Donovan’sSpecialist Anthony Gomez were invited to attend the courtroom, Law v. Siegel, wasU.S. Probation Office’s 2014 awards and recognition heard by the Supreme Courtceremony, held at the Autry Museum in Griffith Park. to determine whether there Judge Thomas B. Donovan are circumstances in whichThe event was presided over by Chief U.S. Probation certain exempt property thatOfficer Michelle A. Carey and attended by more than is generally protected under the Bankruptcy Code can200 U.S. Probation employees and guests, including be used to pay administrative expenses of the estate.Senior District Judge Terry J. Hatter, District Executive Judge Donovan provided introductory remarks andand Clerk of Court Terry Nafisi, and Chief Pretrial took questions at the conclusion of oral argument.Services Officer George Walker. BANKRUPTCY CASE TIMELINEOffice Services Manager Roland Blanco andAdministrative Specialist Anthony Gomez each University of California, Losreceived an administrative award in recognition of theirdedication and partnership in advancing the goals, Angeles Ann C. Rosenfieldmission and values of the U.S. Probation Office. Overthe years, the Court has maintained a solid relationship Fellow Julie A. Pollock workedwith the U.S. Probation Office by assisting them withfacility lease negotiations, space and facilities projects, with the Court’s Pro Seand most recently, by helping them reduce costs byproviding them with space and facilities to use for their Committee to develop a timelineongoing officer training program. This cost-savingeffort was a key factor in the Court’s selection for these that identifies and explains theadministrative awards and the recognition was mostappreciated. major events and deadlines that occur in a chapter 7 bankruptcy case. The Bankruptcy Timeline Julie A. Pollock was originally developed and formatted to be distributed as a PDF document. In December 2013, the Bankruptcy Timeline appeared on the “Don’t Have an Attorney” page of the Court’s website. Working with the Clerk’s Office to create a better visual tool, Ms. Pollock helped to develop an interactive web version of the Bankruptcy Timeline. In January 2014, a promotional component was added to the Court’s homepage and the rotating images now prominently display and link to the interactive version of the Bankruptcy Timeline. An analysis of the Court's website revealed it is one of the most popular links visited. The timeline was expanded by adding a Spanish version in March 2014, in both the PDF and interactive versions.P a g e 42 United States Bankruptcy Court - Central District of California

Annual Report 2014COURT’S FEE WAIVER PILOT FOR reduce the number of CIANs sent to chambers forPRO BONO ATTORNEYS EXPANDS handling, and to clarify that once a CIAN has been sent to chambers, chambers staff were responsible forUnder the direction of the Case Management preparing any orders or taking whatever action theCommittee, the Court expanded its Case judge deemed necessary or appropriate. The uniformityManagement/Electronic Case Files (CM/ECF) fee of the revised procedures saves labor for the Clerk’swaiver pilot program in April 2014. Initially launched Office and the district-wide uniformity of the CIANin June 2013, the pilot enables pro bono attorneys to enables staff members throughout the Central Districtelectronically file fee waiver applications along with to assist other divisions when necessary.case commencement documents. The program wassuggested by the Bar Advisory Board as part of an effort AO SUPPLEMENTAL FUNDING FOR THEto encourage attorneys to volunteer to provide pro bono RECORDS DIGITIZING PROJECT ANDservices to pro se debtors by streamlining the process, DOCUMENT PROCESSING RECEIVEDavoiding an in-person visit to the Clerk’s Office. As part of the Roybal Realignment Project andPETITION PACKAGES SUBSTANTIALLY in an effort to reduce the Court’s footprint, theUPDATED Administrative Office of the U.S. Courts (AO) agreed to provide funding for estimated labor costs forA project team comprised of operations staff and digitizing, scanning, and processing all paper recordsthe Forms Task Force updated the Court’s chapter in the Los Angeles Division. Additionally, in 2014, the7, 11, and 13 petition packages to reflect changes in Court requested and received supplemental funding forautomation and the Court Manual. The team solicited 14 terabytes of additional space to store PDFs for thesuggestions from pro bono attorneys at the Los Angeles Records Management Digitizing Project and futureself-help desk about making the instructions easier to projects similar in nature. According to the establishedunderstand for pro se debtors. The updated petition records retention schedules, designated Records andpackages will include the optional Debtor Electronic Operations staff scanned and converted paper recordsBankruptcy Noticing (DeBN) Activation form to into digital copies; reviewed case files to be archived;enable debtors to request receipt of orders and court- reviewed PDFs of paperless documents; disposed ofgenerated notices by email rather than by U.S. mail. paper copies by shredding; and reviewed transcripts,The updated petition packages were made available in exhibits, and miscellaneous case files and documents.the summer of 2014. In 2014, the Records team scanned 188 boxes ofMODIFIED CASE INITIATION ACTION paper documents for the Administrative ServicesNOTICE PROCEDURES IMPLEMENTED Department, 119 boxes for the Office Services Department, and 575 boxes for the Executive team,On June 23, 2014, the Clerk’s Office implemented totaling 882 boxes. A total of 443 boxes of closed casesthe modified Case Initiation Action Notice were prepared and transferred to the Federal Records(CIAN) procedures that were approved by the Case Center. The Records team completed the disposal ofManagement Committee and adopted by the Court at 910 boxes of paper documents. These paper documentsthe Board of Judges meeting held on December 6,2013. were scanned, saved as PDFs, and subsequentlyCIANs are used by court staff to identify issues related uploaded into Case Management/Electronic Caseto non-deficient case commencement documents and Files (CM/ECF) as electronic files.provide this information to the presiding judge. Toprepare for the rollout, the Clerk’s Office conducted The Records team also disposed of 130 boxes for thecomprehensive staff training and extensively modified Administrative Services Department. A sum of 379Case Management/Electronic Case Files (CM/ECF) boxes containing old transcripts that were alreadyand local Case Commencement Deficiency Notice disposed of by the Federal Records Center and(CCDN) procedures. The procedures were revised to miscellaneous folders from cases closed in 1997 were disposed of by on-site shredding.United States Bankruptcy Court - Central District of California P a g e 43

Annual Report 2014 The training program included courses in six “Areas of Knowledge” relevant to anyone responsible forCOURT PARTICIPATES IN LARGE COURT managing federal records. NARA offers a certificate inWORKSHOP ON PROCUREMENT ISSUES Federal Records Management Training to participants who successfully complete classes two through six inOn November 4 and November 5, 2014, employees the series and pass exams associated with each class.from five of the nation’s largest court units met with The “Areas of Knowledge” classes are: “Creating andrepresentatives of the Administrative Office of the U.S. Maintaining Agency Business Information,” “RecordsCourts’ (AO) Procurement Management Division Scheduling,” “Records Schedule Implementation,”(PMD) to discuss procurement issues affecting large “Asset and Risk Management,” and “Recordscourts. Organized by the U.S. District Court for the Management Program Development.” The coursesCentral District of California, the meeting took place associated with the certificate cover every aspect ofin Los Angeles with employees from the following federal records management and are an importantcourts: the District Courts for the Southern District step in acquiring the skills necessary to manage federalof Florida, the Northern District of Illinois, and the records.Central District of California; Pretrial Services for theCentral District of California; and the Bankruptcy The program focuses on policies and proceduresCourt for the Central District of California. unique to the federal environment. The training will aid the Court in maintaining correct and orderlyOn November 4, Procurement Executive Carey records, complying with federal guidelines for recordsFountain kicked off the event with a presentation management, and preparing for emergencies.about the role the PMD plays in the procurementprocess, and Supervisory Procurement Analyst Donald COURT STAFF ATTENDS 2014 NCBCParkins enumerated common problems and challenges CONFERENCEfaced by larger courts. Mr. Fountain and Mr. Parkinsemphasized the high level of responsibility and risk From July 14 through July 18, 2014, over 450large court units undertake in the procurement of bankruptcy employees from bankruptcy courts acrossgoods and services. Mr. Fountain concluded the day’s the country gathered in St. Louis, Missouri to attenddiscussion with a look at initiatives currently underway the 34th annual National Conference of Bankruptcythat will assist court units in streamlining the Clerks (NCBC) hosted by the U.S. Bankruptcy Courtprocurement process in the future. On November 5, for the Eastern District of Missouri and the U.S.Mr. Fountain and Mr. Parkins asked participants about Bankruptcy Court for the Southern District of Illinois.their procurement practices, and IT Manager Theresa The U.S. Bankruptcy Court for the Central District ofDressler of District Court for the Central District of California was represented by 28 delegates, includingCalifornia presented examples of automated systems Chief Deputy of Administration Steven A. Slonikerused in their court. and Officer of Planning and Personnel Management Beryl Dixon.CLERK’S OFFICE STAFF ENROLLSIN NARA RECORDS MANAGEMENT Attendees experienced an event-filled week thatTRAINING PROGRAM included many educational opportunities and social and networking events, as well as a chance to learnDeputy-in-Charge Dennis Tibayan, Self Help Desk about the city by the Mississippi River, also knownTeam Leader Sabrina Palacio-Garcia, Operations as “The Gateway to the West.” Various informativeSpecialist Willy Del Mundo, and Executive Assistant breakout sessions were offered during the week coveringJessica Garibay were enrolled in the National Archives topics such as leadership and teamwork lessons fromand Records Administration’s (NARA’s) National the world of sports; navigating the JNet; negotiating,Records Management Training Program at the NARA collaboration, and communication; technical trainingregional facility in San Diego from August 18 throughAugust 22, 2014 and September 15 through September19, 2014.P a g e 44 United States Bankruptcy Court - Central District of California

Annual Report 2014Central District of California Bankruptcy Court Staff at NCBC Conferencein St. Louison Microsoft PowerPoint, Word, and Excel; financialliteracy, Thrift Savings Plan and retirement planning;Next Generation (NextGen) Case Management/Electronic Case Files (CM/ECF); and creating apositive work environment. Attending the conferencewas an educational and valuable experience for all.This year’s conference marked the 10-year anniversaryof NCBC’s partnership with Michigan StateUniversity (MSU). NCBC once again offered twocourses from the MSU Judicial Administrationnoncredit certificate program: “Purposes andResponsibilities of Courts” and “Leadership.” At eachNCBC annual meeting, MSU offers two differentcourses as part of its certificate program in the areaof judicial administration. Students in the program,including court staff, received educational exposureto the various aspects of court management andadministration.United States Bankruptcy Court - Central District of California P a g e 45

Annual Report 2014TECHNOLOGY AND INNOVATIONONLINE CHAT PROGRAM NOW subtle differences between both operating systems,AVAILABLE ensuring minimal disruption to court operations when the move was completed. The majority of theOn February 3,2014,the Clerk’s Office launched the full Court’s employees attended a session during 2014,version of its online chat program to the general public. and a recorded version of the course was added to theVisitors to the Court’s website can now enter into real- Court's Virtual University.time chat with a call center representative. The chatfeature permits users to request procedural information DIGITAL TOUCHSCREENS INSTALLED INabout bankruptcy directly from representatives of the THE SAN FERNANDO VALLEY DIVISIONCourt. Call center representatives answer commonlyasked questions using pre-approved responses.Through On February 17, 2014, the Clerk’s Office installed sixthe chat program, call center representatives are able touchscreens in the San Fernando Valley Division:to assist users with direct links to the Court’s Local one large screen outside each courtroom and oneBankruptcy Rules and the most frequently requested small screen in each of the vestibules adjacent to theforms. The program has been in use on a limited basis courtrooms. Digital touchscreens have largely replacedsince August 2013, when it was made exclusively paper calendars in this Division. The monitors allowavailable to registered Case Management/Electronic attorneys and litigants to look up their case assignmentsCase Files (CM/ECF) account holders through an and view any tentative rulings. The touchscreensunannounced “soft launch.” support the Court’s ongoing efforts to economize while saving labor and significantly reducing printing costs.DISTRICT-WIDE MIGRATION TO CASE MANAGEMENT ASSIST INCREASESWINDOWS 7 EFFICIENCYIn April 2014, the IT Help Desk began migrating the In 2014, the Court continued to maximize efficiencyCourt’s computers to the Windows 7 operating system. through use of Case Management Assist (CMA).As of December, approximately 750 of the Court's Developed by the U.S. Bankruptcy Court for thedesktop and laptop computers had been upgraded to Western District of Oklahoma, CMA is a qualitythe new operating system. review program designed to enhance daily operations and case management. Additionally, without reducingWindows 7 provides a more streamlined and network or Case Management/Electronic Case Filesmodern experience for court staff, and standardizing (CM/ECF) speeds, CMA provides superior internalthe operating system district-wide increased the reports that enable supervisors, managers, and theHelp Desk’s ability to assist users and troubleshoot Executive team to measure the productivity andproblems. Using Windows 7, court staff can organize accuracy of court staff and external users. Once allprograms and files, customize and arrange the taskbar employees were trained, the Executive team evaluatedand desktop, and view and launch programs and files. CMA’s full capability and implemented measures toIncluded in the upgrade was an update to Internet increase productivity. Throughout the year, managersExplorer 9, which also includes improvements to and supervisors assessed the staff ’s workload andperformance and security. productivity by analyzing multiple CMA reports. Based on these reports, managers and supervisors wereThe Clerk’s Office offered a Windows 7 training able to re-assign the workload across divisional offices.course to the chambers and Clerk’s Office staff byWebEx. The course familiarized attendees with the Also, on September 22 and 23, Management AnalystP a g e 46 United States Bankruptcy Court - Central District of California