Parsons III v. Changco et al

UNITED STATES BANKRUPTCY COURT
MIDDLE DISTRICT OF FLORIDA
FORT MYERS DIVISION
www.flmb.uscourts.gov
In Re:
Case No. 2:25-bk-02246-FMR
Vernon Ballard Parsons III, Chapter 13
Debtor.
/
Vernon Ballard Parsons III,
Plaintiff,
vs. Adv. No. 2:25-ap-00078-FMR
Marife Joyno Changco, and
Holly Beth Chernoff,
Defendant.
/
MEMORANDUM OPINION AND ORDER
GRANTING IN PART AND DENYING IN PART
DEFENDANT’S MOTION TO DISMISS SECOND AMENDED
ADVERSARY COMPLAINT AND REQUEST FOR JUDICIAL NOTICE
THIS MATTER came on for hearing on August 27, 2026, upon Defendant,
ORDERED.
Dated: August 29, 2026
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Holly Beth Chernoff’s Motion To Dismiss Plaintiff’s Second Amended Adversary
Complaint And Request For Judicial Notice1 (“Motion to Dismiss”). Defendant,
Holly Beth Chernoff (“Ms. Chernoff”), principally argues dismissal is required
under the doctrine of quasi-judicial immunity.2 Plaintiff, Vernon Ballard
Parsons III (“Plaintiff”), opposes the Motion to Dismiss.3 For the following
reasons, the Court will grant in part and deny in part the Motion to Dismiss.4
The Court will deny the Motion to Dismiss to the extent Count I and II of the
Second Amended Complaint seeks turnover of the $2,751.61 allegedly remaining in
Ms. Chernoff’s trust account. To survive dismissal, a complaint must contain
sufficient factual matter, accepted as true, to state a facially plausible claim for
relief. A claim is facially plausible when its factual content permits a reasonable
inference that the defendant is liable for the alleged misconduct.5 In applying that
standard, the Court accepts well-pleaded factual allegations as true and construes
1 Doc. No. 45.
2 See generally Doc. No. 45.
3 See generally Plaintiff’s Response in Opposition to Defendant Chernoff’s Motion to Dismiss
Second Amended Adversary Complaint (Doc. No. 56), and Plaintiff’s Supplemental
Memorandum of Law Regarding Turnover and Surcharge under 11 U.S.C. § 543 (Doc.
No. 58).
4 As a preliminary matter, the Court grants Ms. Chernoff’s request under Federal Rule of
Evidence 201 to take judicial notice of the state- and federal-court orders attached to her
motion as Exhibits A through D. Those orders are public court records whose accuracy cannot
reasonably be questioned. The Court may therefore take judicial notice of them at the
pleading stage. See Horne v. Potter, 392 F. App’x 800, 802 (11th Cir. 2010) (quoted in Parsons v.
Hall, No. 2:25-CV-1187-KCD-KRH, 2026 WL 1784773, at *1 n.3 (M.D. Fla. June 22, 2026)).
5 Parsons, 2026 WL 1784773, at *2 (quoting Galette v. Goodell, No. 23-10896, 2023 WL
7391697, at *3 (11th Cir. Nov. 8, 2023)).
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them in Plaintiff’s favor.6
Here, Plaintiff has alleged sufficient facts to state a plausible claim that the
$2,751.61 remaining in trust with Ms. Chernoff is property of the bankruptcy estate
and is subject to turnover under 11 U.S.C. § 542(a), § 543, or both. At this stage, the
Court need not conclusively determine whether Ms. Chernoff qualifies as a
“custodian” within the meaning of the Bankruptcy Code.7 Even assuming she does
not, the Second Amended Complaint plausibly alleges that she possesses estate
property subject to turnover under § 542(a). The Motion to Dismiss is therefore
denied as to Counts I and II to the extent they seek turnover of the remaining trust
funds.
The Court reaches a different conclusion as to Plaintiff’s allegations that
Ms. Chernoff exceeded her authority by retaining or “pocketing” insurance
proceeds, interfering with Plaintiff’s mortgage account, or taking Plaintiff’s
personal property. Those allegations arise from the same operative conduct resolved
in Parsons.8 In that action, the United States District Court for the Middle District
of Florida dismissed Plaintiff’s claims against Ms. Chernoff with prejudice based on
absolute quasi-judicial immunity.9 The District Court addressed Ms. Chernoff’s
court-authorized communications with the mortgage lender, her collection and
6 Id. (citing Erickson v. Pardus, 551 U.S. 89, 93–94, 127 S. Ct. 2197, 167 L. Ed. 2d 1081 (2007)).
7 11 U.S.C. §§ 101 - 1532 (“Bankruptcy Code”). Unless otherwise indicated, all statutory
references are to the Bankruptcy Code.
8 2026 WL 1784773.
9 Parsons, 2026 WL 1784773, at *2.
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administration of insurance proceeds and rents, and her implementation of the
state court’s orders concerning the marital duplex.10
Plaintiff is collaterally estopped from relitigating Ms. Chernoff’s entitlement
to quasi-judicial immunity for that conduct. The doctrine of collateral estoppel
applies when:
(1) the issue at stake is identical to the one involved in the prior
proceeding; (2) the issue was actually litigated in the prior proceeding;
(3) the determination of the issue in the prior litigation must have been
“a critical and necessary part” of the judgment in the first action; and
(4) the party against whom collateral estoppel is asserted must have had
a full and fair opportunity to litigate the issue in the prior proceeding.11
Here, the immunity issue is identical to the one presented here; it was actually
litigated and necessarily determined in the prior federal action; and Plaintiff had a
full and fair opportunity to litigate it. The pendency of Plaintiff’s appeal does not
alter the preclusive effect of that final judgment unless and until it is reversed.12
Thus, the Court will grant the Motion to Dismiss as to the claims—however
styled—predicated on Ms. Chernoff’s allegedly unauthorized retention of insurance
proceeds, interference with Plaintiff’s mortgage account, or taking of Plaintiff’s
personal property. Because absolute quasi-judicial immunity and issue preclusion
bar those claims on the face of the pleadings, further amendment would be futile
10 Id.
11 Christo v. Padgett, 223 F.3d 1324, 1339 (11th Cir. 2000) (quoting Pleming v. Universal–
Rundle Corp., 142 F.3d 1354, 1359 (11th Cir.1998)).
12 See Jaffree v. Wallace, 837 F.2d 1461, 1466–67 (11th Cir. 1988) (“[A] final judgment retains all of
its res judicata consequences pending decision of the appeal.”).
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and the dismissal will be with prejudice.13
For these reasons, the Court will grant in part and deny in part the Motion to
Dismiss.
Accordingly, it is
ORDERED that
1. The Motion to Dismiss is GRANTED IN PART AND DENIED IN
PART.
2. The Motion to Dismiss is denied as to Counts I and II to the extent
Plaintiff seeks turnover of the $2,751.61 allegedly held in Ms. Chernoff’s trust
account.
3. The Motion to Dismiss is granted as to the claims—however styled—
predicated on Ms. Chernoff’s allegedly unauthorized retention of insurance
proceeds, interference with Plaintiff’s mortgage account, or taking of Plaintiff’s
personal property. Those claims are dismissed with prejudice.
4. Ms. Chernoff shall file an answer to the remaining portions of Counts I
and II within fourteen (14) days after entry of this Order.
The Clerk’s office is directed to serve a copy of this order on interested parties.
13 See Parsons, 2026 WL 1784773, at *3 (“When a defense as formidable as quasi-judicial
immunity applies on the face of the pleadings, allowing leave to amend would be an exercise
in futility”).
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