Bartos v. Kloeppner (In Re Kloeppner)

460 B.R. 759, 2011 U.S. Dist. LEXIS 122600, 2011 WL 5040661
CourtDistrict Court, D. Minnesota
DecidedOctober 24, 2011
DocketBankruptcy No. 10-60981. Adversary No. 10-6036. Civil No. 11-1546 (JRT/LIB)
StatusPublished
Cited by4 cases

This text of 460 B.R. 759 (Bartos v. Kloeppner (In Re Kloeppner)) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bartos v. Kloeppner (In Re Kloeppner), 460 B.R. 759, 2011 U.S. Dist. LEXIS 122600, 2011 WL 5040661 (mnd 2011).

Opinion

MEMORANDUM OPINION AND ORDER AFFIRMING THE BANKRUPTCY COURT ORDER

JOHN R. TUNHEIM, District Judge.

This matter is before the Court on Darí-an Bartos’ appeal from a final order of United States Bankruptcy Judge Dennis D. O’Brien. (Notice of Appeal, Ex. 5, May 10, 2011, Docket No. 1.) Darían Bartos (“Bartos”) paid child support to Kelly Klo-eppner (“Kloeppner”) for a child whom he believed he fathered. (Bartos v. Klo-eppner, No. 73-F9-02-1614, at *3 (Minn. Dist. Ct. Apr. 6, 2010), Ex. 15, Docket No. 1.) Bartos and Kloeppner never married. (Hr’g Tr. 18:21, Ex. 3, Apr. 26, 2011, Docket No. 1.) Bartos took a paternity test and discovered that he was not the father. (Id. 10:1-12.) As a result, the state court ordered that Kloeppner return the money that Bartos paid her for child support. (Bartos v. Kloeppner, No. 73-F9-02-1614, at *1-2.) Kloeppner filed a Chapter 7 Bankruptcy Petition seeking to discharge this obligation. (See Notice of Appeal at 1.) Bartos objected to the discharge of this obligation citing 11 U.S.C. § 523(a)(5) and (15). (Bankr. Compl., Ex. 15, at 1-3, Nov. 12, 2010, Docket No. 1.) The Bankruptcy Court ordered summary judgment for Klo-eppner and held that her debt to Bartos was dischargeable. (Order Granting Summ. J., Ex. 7, Apr. 27, 2011, Docket No. *761 1.) Because Kloeppner does not owe Bar-tos child support or any other nondis-chargeable debt, the Court will affirm the Bankruptcy Court’s order and grant summary judgment to Kloeppner.

ANALYSIS

I. STANDARD OF REVIEW

In bankruptcy proceedings, the district court sits as an appellate court and applies the same standard of review as the court of appeals. Reynolds v. Pa. Higher Educ. Assistance Agency, 425 F.3d 526, 531 (8th Cir.2005). This Court reviews the bankruptcy court’s findings of fact for clear error and its conclusions of law de novo. Id. “A finding is clearly erroneous when although there is evidence to support it[,] the reviewing court is left with the definite and firm conviction that a mistake has been committed.” DeBold v. Case, 452 F.3d 756, 761 (8th Cir.2006) (internal quotation and alteration omitted).

Summary judgment is appropriate where there is no genuine dispute of material fact and the moving party can demonstrate that it is entitled to judgment as a matter of law. Fed.R.Civ.P. 56(a). A fact is material if it might affect the outcome of the suit, and a dispute is genuine if the evidence is such that it could lead a reasonable jury to return a verdict for either party. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 247, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). A court considering a motion for summary judgment must view the facts in the light most favorable to the non-moving party and give that party the benefit of all reasonable inferences that can be drawn from those facts. Matsushi-ta Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986).

II. NONDISCHARGEABILITY

Bartos objects to the discharge of Klo-eppner’s debt citing 11 U.S.C. § 523(a)(5) and (15). 11 U.S.C. § 523(a)(5) provides that among the types of debts not discharged by a Chapter 7 bankruptcy discharge are debts “for a domestic support obligation.” In turn, 11 U.S.C. § 101(14A) defines “domestic support obligation” as a debt that is:

(A) owed to or recoverable by—
(i) a spouse, former spouse, or child of the debtor or such child’s parent, legal guardian, or responsible relative ...
(B) in the nature of alimony, maintenance, or support ... of such spouse, former spouse, or child of the debtor or such child’s parent, without regard to whether such debt is expressly so designated; [and]
(C) established or subject to establishment before, on, or after the date of the order for relief in a ease under this title, by reason of applicable provisions of—
(i) a separation agreement, divorce decree, or property settlement agreement [or]
(ii) an order of a court of record....

11 U.S.C. § 523(a)(15) further provides that a debt may not be discharged that is:

to a spouse, former spouse, or child of the debtor and not of the kind described in paragraph (5) that is incurred by the debtor in the course of a divorce or separation or in connection with a separation agreement, divorce decree or other order of a court of record....

In determining whether Klo-eppner’s debt falls under one of these exceptions, the Court must look to the substance of the state court’s award to Bartos, not solely the label of that award. See 11 U.S.C. § 101(14A) (stating that the deter- *762 urination of whether a debt is “in the nature of alimony, maintenance, or support” is “without regard to whether such debt is expressly so designated”). The Court finds that neither the language used by the state court nor the true nature of Bartos’ award falls under § 523(a)(5) or (15).

On April 6, 2010, the state court ordered that Kloeppner pay Bartos $7,558.17 “for all money expended on behalf of the child or paid to [Kloeppner] or paid to the County of Stearns” (including money paid to Stearns County for child support and “various expenditures at Slumberland, Sugar Plum Daycare, etc.”), $525 “as and for all genetic testing costs,” and disbursements in the amount of $2,539.35 (for “filing fees, transcripts, subpoena, and other costs”), for a total of $10,622.52. (See Bartos v. Kloeppner, No. 73-F9-02-1614, at *1-3.) The Court held that Bartos had “claim[s] in equity” to “recover the child support paid” and for genetic testing costs. (Id. at *4, 6-9.) Although the Court used the phrase “child support,” it did not award Bartos child support. Rather, the Court ruled that Bartos could recover in equity the child support that he wrongfully paid.

The sum the Court awarded to Bartos does not fall under the plain language of 11 U.S.C. § 523(a)(5) or (15) for three reasons.

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Bluebook (online)
460 B.R. 759, 2011 U.S. Dist. LEXIS 122600, 2011 WL 5040661, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bartos-v-kloeppner-in-re-kloeppner-mnd-2011.