(PS) Golden v. Sound Inpatient Physicians Medical Group, Inc., 2:14-cv-00497

Plaintiff Otashe Golden filed this civil action pro se after prior counsel withdrew; counsel's withdrawal noted plaintiff had filed a Chapter 7 bankruptcy.
Upon filing bankruptcy, a debtor’s legal claims become property of the bankruptcy estate under 11 U.S.C. § 541(a).
The court noted that when a debtor files bankruptcy, the debtor typically loses standing to prosecute claims unless the bankruptcy trustee abandons the claims, exempts them, or the trustee joins/ratifies the action.
Plaintiff has not shown that the bankruptcy trustee abandoned the claim, exempted it from the estate, or ratified/joined the action.
The court ordered that plaintiff and/or the bankruptcy trustee must substitute, join, or show ratification under Federal Rule of Civil Procedure 17(a)(3) by July 8, 2016, or the court will recommend dismissal with prejudice for failure to prosecute.
The Clerk was directed to serve the order on the bankruptcy trustee and the U.S. Trustee.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether plaintiff has standing to prosecute the case after filing Chapter 7	Golden (pro se) continued prosecution of the suit; no showing trustee abandoned or joined	Claims belong to bankruptcy estate; plaintiff lacks standing unless trustee joins/abandons/exempts	Plaintiff lacks standing absent trustee action; must substitute/join or show ratification by deadline or case will be recommended dismissed with prejudice

Switchboard Co. v. Westinghouse Elec. Corp., 789 F.2d 705 (9th Cir. 1986) (debtor’s claims become property of the bankruptcy estate and affect standing)
Rowland v. Novus Fin. Corp., 949 F. Supp. 1447 (D. Haw. 1996) (claims are interests under § 541(a) and debtor loses standing)
In re Lopez, 283 B.R. 22 (9th Cir. B.A.P. 2002) (trustee’s control over estate claims and effect on real party in interest)
In re Pace, 146 B.R. 562 (9th Cir. B.A.P. 1992) (bankruptcy estate principles governing causes of action and standing)