Osuji v. HSBC Bank USA, N.A.

MEMORANDUM AND ORDER

*1 Samuel Osuji (“appellant”) appeals from an order entered by the United States Bankruptcy Court for the Eastern District of New York (the “Bankruptcy Court” or the “court”). In an opinion dated February 2, 2017 (“Abstention Order”), the Honorable Alan S. Trust abstained from hearing three adversary proceedings (the “Adversary Proceedings”) that appellant filed against various lenders. Appellant asserted in the Adversary Proceedings, commenced on January 29, 2016, March 30, 2016, and April 4, 2016, that he owned unencumbered title to three real properties (one in each adversary proceeding) that were the subject of state court proceedings before appellant obtained his interests in these properties.Judge Trust is also presiding over appellant’s chapter 7 bankruptcy action, In re Osuji, Bankr. E.D.N.Y., Case No. 15-75534-ast.¹ Appellant voluntarily filed the chapter 7 action on December 30, 2015. On January 13, 2016, appellant filed bankruptcy schedules in the chapter 7 action asserting ownership of various properties, including those at issue in the Adversary Proceedings that he subsequently filed (beginning on January 29, 2016). Judge Trust entered an order granting appellant his discharge in the chapter 7 action on May 2, 2016.² Judge Trust then held a hearing on July 19, 2016, at which he determined that there were substantial questions as to whether the court should abstain from the Adversary Proceedings. The court received and reviewed filings from the parties over the following months, and received an affirmation from appellant on January 2, 2017, indicating that state proceedings involving the properties at issue in the Adversary Proceedings had not been dismissed or closed.Because this Court concludes that the Bankruptcy Court clearly did not abuse its discretion in permissively abstaining from the Adversary Proceedings, the ruling below is affirmed.³I. BACKGROUNDThe Court assumes the parties’ familiarity with the full facts and procedural history of this action and summarizes the facts and history relevant to the instant appeal based on the records in the underlying Bankruptcy Court proceedings, as well as the three consolidated appeals.A. The Underlying Chapter 7 Bankruptcy Action and Adversary ProceedingsThe facts in this section are drawn primarily from the records in the chapter 7 bankruptcy action, the adversary proceeding against HSBC Bank, U.S.A., National Association (“HSBC”), as Trustee for Home Equity Loan Trust Series ACE 2005-HE5, Bankr. E.D.N.Y., Case No. 16-8048-ast (the