Schrader

The following is a recitation of the facts of this adversary proceeding as summarized by the Ninth Circuit BAP ("BAP") in In re Sangha , No. ADV. 13-01171-MH, 2015 WL 3655113 , at *2 (9th Cir. BAP June 11, 2015), aff'd and remanded, 678 F. App'x 561 (9th Cir. 2017).

On October 13, 2009, Charles Schrader ("Schrader") filed a complaint against Narinder Sangha ("Sangha") for defamation (slander per se) in San Francisco Superior Court ("State Court"), alleging that Sangha had made false statements about Schrader in the course of an employment background investigation. On November 17, 2009, Sangha filed an answer and general denial. The state court granted Schrader leave to file a second amended complaint on February 14, 2011. In the second amended complaint (the "SAC"), all fourteen causes of action alleged that Sangha made the defamatory statements with *906 malice; the prayer sought an award of exemplary damages.

On March 4, 2011, Schrader filed a motion for terminating sanctions against Sangha for engaging in discovery abuses. The state court granted Schrader's sanctions motion and struck Sangha's answer to the second amended complaint, commenting: "The Court finds that…