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In re Scheuplein, IV — 9th Cir. BAP (Jul 16, 2026)

No. 25-1259 Argued July 16, 2026 Published July 17, 2026; updated August 22, 2026

The Ninth Circuit Bankruptcy Appellate Panel considers Copy Solutions' appeal in former employee John Scheuplein's Chapter 7 bankruptcy. Copy Solutions alleged Scheuplein used confidential customer information after leaving the company. It tried to prevent the debt he owed it from being discharged, relying on a 2018 agreement with an attorney's-fee clause. Copy Solutions lost at trial and appealed only the $28,192.50 fee award to Scheuplein. It will argue the bankruptcy litigation was not an action on the contract, so California Civil Code Section 1717 did not authorize fees. The panel later affirmed, holding Copy Solutions made the agreement central to its nondischargeability claims.

In re Scheuplein, IV (No. 25-1259) — United States Bankruptcy Appellate Panel of the Ninth Circuit, argued July 16, 2026.

Sources
Argument audio — Ninth Circuit Bankruptcy Appellate Panel:https://cdn.ca9.uscourts.gov/datastore/media/2026/07/16/25-1259.mp3
Argument listing — Ninth Circuit:https://www.ca9.uscourts.gov/cases/streams-videos/archive?case=25-1259&hearingDate=2026-07-16
Oral argument calendar — Ninth Circuit Bankruptcy Appellate Panel:https://cdn.ca9.uscourts.gov/datastore/uploads/bap/hearings/2026.07.16%20Pas%20CR%201.pdf
Judgment after trial — Central District of California Bankruptcy Court:https://www.cacb.uscourts.gov/sites/cacb/files/documents/opinions/SV-23-01042-GM-JohnWScheupleinIV.pdf
Attorney-fee ruling — Central District of California Bankruptcy Court:https://ecf-ciao.cacb.uscourts.gov/kioskPDF/GM_121625.pdf
Memorandum disposition — Ninth Circuit Bankruptcy Appellate Panel:https://cdn.ca9.uscourts.gov/datastore/bap/2026/08/05/25-1259.pdf
Opinions index — Ninth Circuit Bankruptcy Appellate Panel:https://www.bap9.uscourts.gov/opinions
11 U.S.C. § 523 — U.S. House of Representatives:https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section523&num=0&edition=prelim
California Civil Code § 1717 — California Legislature:https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CIV&sectionNum=1717.

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