Alexander Louis Bednar

CourtUnited States Bankruptcy Court, W.D. Oklahoma
DecidedSeptember 30, 2021
Docket19-14021
StatusUnknown

This text of Alexander Louis Bednar (Alexander Louis Bednar) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, W.D. Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alexander Louis Bednar, (Okla. 2021).

Opinion

ee □□ OF i. NOD A/a □□ Dated: September 30, 2021 2 Sere . . : Baas □ The following is ORDERED: Ow ON GS □□ U3 OF □□□□ OF

Sarah A Hall United States Bankruptcy Judge

UNITED STATES BANKRUPTCY COURT WESTERN DISTRICT OF OKLAHOMA In re: ) ) ALEXANDER LOUIS BEDNAR, ) Case No. 19-14021-SAH ) Chapter 13 Debtor. ) ORDER To quote the Bankruptcy Appellate Panel for the Tenth Circuit (the “BAP”), “the present saga” arises out of the third and final chapter 13 bankruptcy case of Alexander Bednar (“Debtor”) filed in 2019 (the “Third Bankruptcy Case”). Order [Doc. 122], entered by the BAP on April 27, 2021 (the “Order”). After the Third Bankruptcy Case was dismissed by this Court (Honorable Tom R. Cornish)! the chapter 13 trustee, John Hardeman (“Trustee”), was left holding $29,266.15 in plan payments made by Debtor pending confirmation of his chapter 13 plan (the “Funds”). Identifying the Funds as a possible source of recovery, judgment creditors

'Judge Cornish retired on August 31, 2021. The Bankruptcy Case was then assigned to the undersigned judge.

Rick Warren, Oklahoma County Court Clerk, and Jennifer Byler, Deputy Courtroom Clerk (collectively, “Oklahoma County”), and Jill Bednar (“J Bednar”) sought leave to file garnishment summons against the chapter 13 trustee. The Court denied leave, and Oklahoma County and J Bednar appealed to the BAP. On April 27, 2021, the BAP reversed and concluded

the Funds were not shielded from garnishment by Oklahoma County and J Bednar upon dismissal of the Third Bankruptcy Case under 11 U.S.C. § 1326(a)(2). The BAP remanded the case for further proceedings consistent with the BAP’s Order. The only question for this Court on remand is consideration and application of the Barton doctrine2 to the requests for leave to file and serve garnishment summonses on Trustee in an effort to reach the Funds. FACTS 1. Rather than appearing at a hearing on assets set by Oklahoma County in Oklahoma

County District Court (the “Oklahoma County District Court”), Debtor filed his first 2019 bankruptcy case (Case No. 19-12312) on June 6, 2019, and said case was dismissed

2In Barton v. Barbour, the United States Supreme Court held, “before suit is brought against a receiver leave of the court by which he was appointed must be obtained.” 104 U.S. 126, 128, 26 L.Ed. 672 (1881). The Barton doctrine “precludes suit against a bankruptcy trustee for claims based on alleged misconduct in the discharge of a trustee’s official duties absent approval from the appointing bankruptcy court.” Satterfield v. Malloy, 700 F.3d 1231, 1234-35 (10th Cir. 2012). 2 on July 9, 2019, for failing to obtain credit counseling.3 Order, p. 2; Docket in Case No. 19-12312. 2. Debtor filed his second 2019 bankruptcy case (Case No. 19-12845) on July 11, 2019, once again in order to avoid appearing at a hearing on assets set by Oklahoma County in

Oklahoma County District Court, which second bankruptcy case was dismissed because Debtor failed to appear for the Section 341 meeting of creditors. Order, p. 3; Docket in Case No. 19-12845. 3. Oklahoma County again reset the hearing on assets, but Debtor then filed the Third Bankruptcy Case on October 1, 2019. Order, p. 3; Doc. 1. 4. Oklahoma County filed a proof of claim in the Third Bankruptcy Case, Claim No. 5-1, in the amount of $30,582.50 based on judgments awarded Oklahoma County against Debtor

for frivolous and vexatious litigation conduct. Claim No. 5-1. 5. J Bednar filed a proof of claim in the Third Bankruptcy Case, Claim No. 8-1, in the amount of $141,469.56 for unpaid domestic support obligations under a Decree of Divorce and Dissolution of Marriage. Claim No. 8-1. 6. After eight months, and notwithstanding numerous failed confirmation attempts by Debtor, the Court denied confirmation and dismissed the Third Bankruptcy Case on

3It is well established a court may take judicial notice of its own records as well as records of other courts, particularly in closely related cases. Hutchinson v. Hahn, 402 F. App’x 391, 394-95 (10th Cir. 2010) (citing St. Louis Baptist Temple, Inc. v. FDIC, 605 F.2d 1169, 1172 (10th Cir. 1979)); Cornforth v. Fidelity Inv., 2017 WL 650132, at *2 (W.D. Okla. Feb. 16, 2017). Federal courts may take judicial notice of proceedings in other courts if those proceedings have a direct relation to the matters at issue. St. Louis Baptist Temple, 605 F.2d at 1172. Courts are entitled to take judicial notice of a memorandum and orders from other litigation involving the same parties where an earlier court made factual findings regarding issues in the current proceeding. Amphibious Partners, LLC v. Redman, 534 F.3d 1357, 1361-62 (10th Cir. 2008). 3 June 24, 2020, finding Bednar was ineligible to be a chapter 13 debtor. Order, p. 4; Doc. 81. 7. At the time the Third Bankruptcy Case was dismissed, Trustee was holding the Funds, $29,266.15, comprised of payments Debtor was required to pay Trustee while

confirmation was pending. See Trustee’s Memorandum Brief with Certificate of Service [Doc. 149], filed on August 30, 2021. Trustee continues to hold the Funds. Doc. 149, p. 1. 8. On June 26, 2020, Oklahoma County filed its Motion for Leave to Authorize Oklahoma County to Garnish Funds Held by Trustee (“Oklahoma County Motion”). Doc. 83. 9. On July 9, 2020, J Bednar filed Jill Bednar’s Motion for Leave to Authorize Her to Garnish Funds Held by Trustee And Notice of Opportunity for Hearing (“J Bednar

Motion,” collectively with the Oklahoma County Motion, “the Motions”). Doc. 88. 10. At the Court’s request, Trustee filed the Statement of Chapter 13 Trustee Regarding Motions or Leave to Authorize Garnishment (Documents 83 and 88) [Doc. 94] on July 29, 2020 (“Trustee Opposition”).4 Trustee opposed allowing garnishment of the Funds. Order, p. 5; Trustee Opposition. 11. After reviewing the Motions and Trustee Opposition, and considering the arguments of the parties and applicable legal authorities, the Court denied the Motions based on good cause. See Order Denying Motions for Leave to Garnish Funds [Doc. 99], entered on

September 2, 2020 (the “BK Order”). Specifically, the Court found:

4Debtor also objected to the Oklahoma County Motion and the J Bednar Motion. However, as the BAP ruled against Debtor in a decision which is now final and non-appealable, Debtor’s objections are moot. 4 A. The Motions and their corresponding requests for leave to file and serve garnishment summonses on Trustee fall within the parameters of the Barton doctrine. B. Given the possible administrative and financial burdens that may be

imposed on Trustee due to garnishment proceedings not only in the Third Bankruptcy Case but also in all other chapter 13 cases he administers dismissed prior to confirmation, the Barton doctrine bars garnishments on the trustee; and C. The clear language of 11 U.S.C. § 1326(a)(2) requires chapter 13 trustees to return plan payments previously paid by chapter 13 debtors whose cases are dismissed prior to confirmation.

BK Order, pp. 5 and 7. 12. Oklahoma County and J Bednar filed separate notices of appeal of the BK Order on September 15, 2020 [Docs. 103 and 104]. The two separate appeals were companioned for briefing, oral argument, and decision. Order, p. 7. 13. At the request of Oklahoma County and J Bednar, the Court stayed the BK Order pending appeal.

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Related

Barton v. Barbour
104 U.S. 126 (Supreme Court, 1881)
Amphibious Partners, LLC v. Redman
534 F.3d 1357 (Tenth Circuit, 2008)
Hutchinson v. Hahn Ex Rel. Estate of Hahn
402 F. App'x 391 (Tenth Circuit, 2010)
In Re VistaCare Group, LLC
678 F.3d 218 (Third Circuit, 2012)
Culie v. Arnett
1988 OK 134 (Supreme Court of Oklahoma, 1988)
La Bellman v. Gleason & Sanders, Inc.
1966 OK 183 (Supreme Court of Oklahoma, 1966)
Johnson v. Farmers Alliance Mutual Insurance Co.
1972 OK 114 (Supreme Court of Oklahoma, 1972)
Kashani v. Fulton (In Re Kashani)
190 B.R. 875 (Ninth Circuit, 1995)
Wellness Int'l Network, Ltd. v. Sharif
575 U.S. 665 (Supreme Court, 2015)
Satterfield v. Malloy
700 F.3d 1231 (Tenth Circuit, 2012)
Lankford v. Wagner
853 F.3d 1119 (Tenth Circuit, 2017)
Sisk v. Gaines
2006 OK CIV APP 117 (Court of Civil Appeals of Oklahoma, 2006)
Richer v. Morehead
798 F.3d 487 (Seventh Circuit, 2015)
In re World Mktg. Chi., LLC
584 B.R. 737 (N.D. Illinois, 2018)
In re Jankauskas
593 B.R. 1 (N.D. Georgia, 2018)
In Re Christensen
598 B.R. 658 (D. Utah, 2019)

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Alexander Louis Bednar, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alexander-louis-bednar-okwb-2021.