Borges v. Placeres (In re Placeres)

561 B.R. 354
CourtUnited States Bankruptcy Court, S.D. New York
DecidedDecember 29, 2016
DocketCase No.: 15-10691 (SMB); Adv. Pro. No.: 15-01356 (SMB)
StatusPublished
Cited by1 cases

This text of 561 B.R. 354 (Borges v. Placeres (In re Placeres)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Borges v. Placeres (In re Placeres), 561 B.R. 354 (N.Y. 2016).

Opinion

MEMORANDUM DECISION RESOLVING MOTIONS FOR SUMMARY JUDGMENT

STUART M. BERNSTEIN, United States Bankruptcy Judge:

The plaintiff Jose Borges commenced this adversary proceeding against the debtor and defendant Alfred Placeres to dismiss his chapter 7 case, determine the dischargeability of Placeres’ debts owed to Borges and deny Placeres a general discharge. Placeres moved for summary judgment on all claims and Borges cross-moved for partial summary judgment on his non-dischargeability claim under Bankruptcy Code § 523(a)(6). As more fully discussed below, the Court disposed of all but one of the claims from the bench, reserving decision on Placeres’ motion for summary judgment dismissing Borges’ non-dis-chargeability claim brought under § 523(a)(4). Having considered the supplemental briefing requested from the parties, the Court grants partial summary judgment dismissing the § 523(a)(4) claim.

BACKGROUND1

Although both sides have moved for summary judgment, the facts are hotly contested. Borges is a native of Venezuela who- originally came to the United States in 1996 as a nonimmigrant B-2 Visitor with temporary authorization to remain in the country until June 12,1997. (See Decision and Order of the Immigration Judge, dated Mar.. 10⅛ 2003 (the “Immigration Court Order”), at 1 (ECF Doc. # 12).)2 After staying beyond the authorized period, Borges received a Notice to Appear,dated July 24, 1997, regarding the commencement of immigration removal proceedings. (Id.) At three separate hearings in August, September and December of 1997, Borges appeared pro se before the Immigration Court in Newark, New Jersey, and was granted an adjournment at each hearing because he was unrepresented. (Local Bankr. Rule 7056-1 Plaintiff’s Response to Defendant’s Statement of Undisputed Material Facts, dated June 17, 2016 (“7056-1 Response”), at ¶3 (ECF Doc. # 17);3 see also Transcript of hearing held Feb. 27, 2012 (“Tr, (2/27/12)”) at 19-20 (ECF Doc. # 12).)4 After the December hearing, and upon the Immigration Judge’s express direction, Borges sought counsel to represent him at the next hearing scheduled for January 27, 1998 (the “Fourth Healing”). (7056-1 Response at ¶ 3.)

Placeres is an attorney licensed to practice law in the State of New York. (Id. at ¶ 1.) On January 10, 1998, Borges went to the offices of Entra America, a paralegal service firm owned and operated by Adela Ivan who claimed to be Placeres’ parale[357]*357gal. (Id. at ¶ 4; Tr. (2/27/12) at 21.) Although Borges never met or spoke directly with Placeres, Ivan told him that Placeres would represent him in the Immigration Court proceedings and before the Immigration and Naturalization Service (“INS”). (7056-1 Response at ¶¶5-6.) Shortly before the Fourth Hearing, however, Ivan informed Borges that Placeres would not appear with him at the hearing. (Id. at ¶ 8.) Instead, Ivan provided Borges with a motion to change venue from the Immigration Court in New Jersey to the Immigration Court in New York (the “Venue Motion”), and instructed him to present it to the Immigration Court at the Fourth Hearing. (Id. at ¶ 7.)

Borges appeared unrepresented at the Fourth Hearing on January 27, 1998, and provided the Immigration Court with a copy of the Venue Motion. (Id. at ¶ 9.) The Immigration Judge denied the Venue Motion and directed Borges to appear for another hearing on February 3, 1998 (the “Fifth Hearing”), warning him that a failure to appear would result in the issuance of a deportation order. (Id. at ¶¶ 10-11.)

A few days before the Fifth Hearing, on January 29, 1998, Borges married Julie LaMarea, a U.S, citizen. (Id, at ¶ 14.) Borges and his "wife brought birth certificates, passports and other documents to Ivan at Entra America in order to complete the requisite paperwork to complete a green card application (Form 1-130) and permanent residency application (Form I-485). (Id. at ¶ 14; see also Tr. (2/27/12) at 30.) While at Entra America’s office, Borges and LaMarea signed various forms, which Borges contends were pre-signed in Placeres’ name and pre-filled with Entra America’s phone number and P.O. Box address. (Declaration of Plaintiff, dated June 17, 2016 (“Borges Declaration”) at ¶ 6 (ECF Doc. # 20).)5

Additionally, Ivan—either on her own or pursuant to Placeres’ instructions—directed Borges not to appear at the Fifth Hearing, explaining that his green card application obviated the need for him to appear. (Compare 7056-1 Response at ¶ 12, with 7056-1 Statement at ¶ 12.) Ivan further cautioned him that he would be deported if he attended the Fifth Hearing. (Borges Declaration at ¶ 5; see also Plaintiffs Complaint to Disciplinary Committee, dated Jan. 8, 2003 (“Ethics Complaint”) at 3 (ECF Doc. # 20).)6 As a result, neither Borges nor Placeres appeared at the Fifth Hearing, and the Immigration Court entered an in absentia deportation order against Borges (the “In Absentia Order”). (7056-1 Response at ¶ 13.)

In April 1998, Borges received a notice from the INS regarding his immigration status. (Id. at ¶ 15; see also Borges v. Gonzales, 402 F.3d 398, 402 (3d Cir. 2005) (“Borges Appeal”).) The parties dispute the exact contents of the INS notice, (compare 7056-1 Response at ¶ 15 with 7056-1 Statement at ¶ 15), but agree that the notice informed Borges that he was subject to deportation to Venezuela. (7056-1 Response at ¶ 15.) Placeres asserts that he subsequently submitted a motion to reopen Borges’ removal proceedings (the “First Motion to Reopen”), although Borges disputes whether it was Placeres who actually filed the motion. (Compare 7056-1 Response at ¶ 16, with 7056-1 Statement at ¶ 16)7

[358]*358In any event, the Immigration Court denied the First Motion to Reopen on June 10, 1998. (See Immigration Court Order at 1.) Despite the denial, Ivan falsely informed Borges that the motion had been granted, (7056-1 Response at ¶ 20), apparently leading Borges to believe that he was no longer subject to deportation. (See Tr. (2/27/12) at 41.) Borges asserts that he never received a copy of the decision, (id. at 35), and that he did not discover he was still subject to deportation until nearly two years later. (7056-1 Response at ¶¶ 20-21.)

In the meantime, Borges continued to work with Entra America on matters related to his green card and permanent residency applications. See Borges Appeal, 402 F.3d at 401. These were filed, in error, with the INS in New York rather than the INS in New Jersey. Apparently unaware of the In Absentia Order, the New York INS office granted Borges an adjustment of status interview. Id.

At a 1999 meeting to prepare for the interview, Ivan informed Borges that Plac-eres was no longer working with Entra America, and that another attorney with the firm, Jamal Jbara, would continue representing him. (7056-1 Response at ¶ 22.) Placeres contends that his representation terminated at this point, but Borges disputes this assertion. (Compare 7056-1 Statement

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Related

Borges v. Placeres (In re Placeres)
578 B.R. 505 (S.D. New York, 2017)

Cite This Page — Counsel Stack

Bluebook (online)
561 B.R. 354, Counsel Stack Legal Research, https://law.counselstack.com/opinion/borges-v-placeres-in-re-placeres-nysb-2016.