Malloy v. Canopy

Background

Stephen Malloy, representing himself, filed an application to proceed without prepaying the filing fee, commonly called an in forma pauperis application. The application stated that Malloy had monthly income of $7,200, $500 in cash or checking or savings accounts, and $9,000 in a certificate of deposit. He stated that his housing and expenses equaled his disability income, reported $500 monthly credit-card-loan payments, and attached a $131.55 bill for union dues. He did not provide other details about his monthly expenses.

Court’s analysis

The court explained that a person need not be completely without money to qualify for fee-waiver status, but must describe financial hardship with enough detail to show that paying court costs would prevent payment for basic necessities. The court said Malloy’s $7,200 monthly income suggested that he could likely pay the $405 filing fee and service costs while still affording basic necessities. Because Malloy had not provided enough information about his monthly expenses, the court could not determine whether his expenses truly equaled his income or whether he could afford the case costs.

Order

The court ordered Malloy to show why his fee-waiver application should not be denied. By January 16, 2026, he must either file an amended application or supplemental declaration listing his monthly expenses, or pay the filing fee. The court encouraged him to use the Northern District of California’s fee-waiver form. The court warned that failure to respond or pay could result in a report and recommendation recommending dismissal for failure to prosecute, failure to comply with a court order, and failure to pay the filing fee. The court did not state that it was denying the application in this order. The judge is not identified by name in the opinion text.