Blackburn-Gardner v. Edwards (In Re Edwards)

261 B.R. 523, 2001 Bankr. LEXIS 705, 2001 WL 418751
CourtUnited States Bankruptcy Court, M.D. Florida
DecidedApril 19, 2001
DocketBankruptcy No. 00-3419-3F7. Adversary No. 00-239
StatusPublished
Cited by4 cases

This text of 261 B.R. 523 (Blackburn-Gardner v. Edwards (In Re Edwards)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Blackburn-Gardner v. Edwards (In Re Edwards), 261 B.R. 523, 2001 Bankr. LEXIS 705, 2001 WL 418751 (Fla. 2001).

Opinion

*524 FINDINGS OF FACT AND CONCLUSIONS OF LAW

JERRY A. FUNK, Bankruptcy Judge.

This proceeding is before the Court upon Elizabeth Blaekburn-Gardner’s (“Plaintiff’) complaint to determine the dischargeability of attorney’s fees. The Court conducted a trial on April 12, 2001, and based on the evidence presented and arguments made, the Court makes the following Findings of Fact and Conclusions of Law:

FINDINGS OF FACT

1. William R. Edwards (“Defendant” or “Debtor”) and Robin Dea Edwards (“Former Wife”) were married on December 14, 1980. One child was born into the marriage. (Pl.’s Ex. 1). On December 6, 1999, the Circuit Court of Seventh Judicial Circuit in Volusia County (the “State Court”) entered a Final Judgment of Dissolution of Marriage with Dependent or Minor Child (the “Final Judgment”). (Id.). Plaintiff represented the Former Wife in the divorce proceedings.

2. The Final Judgment ordered the Defendant to pay his Former Wife permanent alimony payments in the amount of $600 per month beginning the first of each month as of December 1, 1999. (Id. at 7). The alimony payments will continue until modified by a court order, the death of either party or remarriage of the obligee, whichever occurs first. (Id.). The Defendant is also obligated to pay child support in the amount of $393.74 per month beginning December 1,1999. (Id.).

3. The State Court specifically found that, in addition to the statutory requirements under Fla. Stat. § 61.01, the Former Wife had no marketable skills and was capable of only maintaining a minimum wage job. (Id.).

4. The child support guidelines worksheet attached to the Final Judgment shows that, at the time of the divorce, the Former Wife’s net income was $792.38 per month, while the Defendant’s net income was $2,651.35 per month. (Pl.’s Ex. 1). The Defendant made over sixty percent (60%) of the parties’ income, while the Former Wife had less than forty percent (40%) of the parties’ income (after taking into account the alimony payments). (Id.).

5. The State Court found that there was a need for and an ability to pay attorney’s fees, costs and suit money. (Id. at 11). The State Court ordered the Defendant to pay an undetermined amount in attorney’s fees and an undetermined amount in costs. (Id.). The State Court reserved jurisdiction to determine the specific amount of fees and costs. (Id.). On January 27, 2000, the State Court entered a judgment for attorney’s fees in the amount of $7,700. (Pl.’s Ex. 3).

6. On May 4, 2000, the Defendant filed his voluntary petition seeking protection under Chapter 7 of the Bankruptcy Code. (Main Doc. 1). On August 11, 2000, this adversary proceeding was filed to determine dischargeability of the attorney’s fees pursuant to 11 U.S.C. § 523(a)(5). (Adv. Doc. 1).

7. On October 2, 2000, the Defendant filed his answer to the complaint to determine dischargeability of the attorney’s fees. (Adv.Doc. 5). The Defendant asserted several affirmative defenses stating that (i) the fees awarded were not subject to contingency such as death and remarriage, (ii) the final judgment of dissolution of marriage balanced the division of assets and liabilities, (iii) the award of attorney’s fees was a property settlement and not the balance of disparate income between the parties, (iv) the award of attorney’s fees was a property settlement and not in the form of support, (v) the existence of a *525 minor child should not be a determining factor of whether to treat attorney’s fees as support or property settlement, (vi) both parties are healthy and therefore the physical health and education of the parties of the marriage should not be considered in determining whether attorney’s fees are treated as support or property settlements, and (vii) the need for support should not be a determining factor in awarding attorney’s fees. (Id.).

8. This Court held a trial on April 12, 2001. Defendant argued that the State Court found the attorney’s fees are not in the nature of support. Plaintiff contends that they are.

CONCLUSIONS OF LAW

The sole issue before the Court is whether the award of attorney’s fees to Plaintiff in the amount of $7,700 is in the nature of support and is thus nondis-chargeable pursuant to 11 U.S.C. § 523(a)(5). In relevant part, section 523(a)(5) of the Bankruptcy Code states:

A discharge under section 727 ... of this title does not discharge an individual debtor from any debt—
(5) to a spouse, former spouse, or child of the debtor, for alimony to, maintenance for, or support of such spouse or child, in connection with a separation agreement, divorce decree or other order of a court of record, determination made in accordance with State of territorial law by a governmental unit, or property settlement agreement, but not to the extent that—
(A) such debt is assigned to another entity, voluntarily, by operation of law, or otherwise (other than debts assigned pursuant to section 408(a)(3) of the Social Security Act, or any such debt which has been assigned to the Federal Government or to a State or any political subdivision of such State); or
(B) such debt includes a liability designated as alimony, maintenance, or support, unless such liability is actually in the nature of alimony, maintenance, or support[.]

II U.S.C. § 523(a)(5)(2000).

The party seeking to declare a debt nondischargeable has the burden of proof and the standard of proof is preponderance of the evidence. Fed. R. Bankr.P. 4005; Grogan v. Garner, 498 U.S. 279, 287, 111 S.Ct. 654, 659-660, 112 L.Ed.2d 755 (1991). The bankruptcy court has to make a determination as to whether the debt is in the nature of alimony or support, or part of a property settlement, in deciding whether to declare the debt nondischargeable. Cummings v. Cummings, 244 F.3d 1263,1266 (11th Cir.2001); Castillo v. Prater (In re Prater), 231 B.R. 819, 821 (Bankr.M.D.Fla.1999) (Proctor, J.). If the debt is in the nature of support, the debt is not dischargeable pursuant to 11 U.S.C. § 523(a)(5). (Id.). Federal bankruptcy law, not state law, determines whether a debt is in the nature of support or property settlement. (Id.). Therefore, the terms or labels used in the state court’s judgment are not controlling on the issue. (Id.).

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Cite This Page — Counsel Stack

Bluebook (online)
261 B.R. 523, 2001 Bankr. LEXIS 705, 2001 WL 418751, Counsel Stack Legal Research, https://law.counselstack.com/opinion/blackburn-gardner-v-edwards-in-re-edwards-flmb-2001.