Brown v. Brown (In Re Brown)

177 B.R. 116, 1994 WL 739015
CourtUnited States Bankruptcy Court, M.D. Florida
DecidedDecember 1, 1994
DocketBankruptcy No. 93-2504-8P1. Adv. No. 93-175
StatusPublished
Cited by6 cases

This text of 177 B.R. 116 (Brown v. Brown (In Re Brown)) 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
Brown v. Brown (In Re Brown), 177 B.R. 116, 1994 WL 739015 (Fla. 1994).

Opinion

ORDER ON MOTION FOR SUMMARY JUDGMENT

ALEXANDER L. PASKAY, Chief Judge.

THIS IS a Chapter 11 case and the matter under consideration is a Motion for Summary Judgment filed by William A. Brown (Debt- or) in the above-captioned adversary proceeding in which the Debtor names as defendants Frances R. Brown (Ms. Brown), Jeanne L. Coleman (Ms. Coleman), Steven T. Northcutt (Mr. Northcutt) and Stephen W. Sessums (Mr. Sessums).

The Motion under consideration is based on the proposition urged by the Debtor that the facts which are relevant are without dispute and the Debtor is entitled to a determination that an attorney fee award to Ms. Coleman and Mr. Northcutt are not excepted from the overall protection of the general bankruptcy discharge based on § 523(a)(5) of the Code. The claims under consideration are connected with the long drawn out dissolution of marriage proceeding in which the domestic relation court awarded attorneys fees to Ms. Coleman and Mr. Northcutt, both of whom represented the Debtor’s ex-spouse in the dissolution of marriage and in an appeal in that action. The amount awarded to Mr. Northcutt on May 5, 1993 was in the amount of $13,912.50 and $1,230 to Ms. Coleman. It is without dispute that by agreement Ms. Brown is not obligated to pay any fees to Ms. Coleman or Mr. Northcutt.

It is the Debtor’s contention that first, because the award granted by the domestic relations court ordered the payment to the attorneys .and not to his former spouse, the debt is dischargeable relying on the literal language of the Section set forth in § 523(a)(5) of the Code; second, that the award cannot possibly be in the nature of alimony and support for his former spouse since, as noted earlier, she is not legally liable to pay these fees.

In this connection it should be pointed out what is and what is not involved in the matter under consideration. Whether or not the Debtor is legally liable to pay the award by the domestic relations court to the defendants, Ms. Coleman and Mr. Northcutt, is not an issue involved in the matter under consideration. There is very substantial authority to support the proposition that for the purpose of § 523(a)(5) the fact that the award is payable directly to the attorney and not to the spouse is of no consequence, In re Spong, 661 F.2d 6 (2d Cir.1981); In re Williams, 151 B.R. 605 (Bankr.M.D.Fla.1993); In re St. Laurent, 144 B.R. 932, 933 n. 2 (Bankr.S.D.Fla.1992). Coneededly, this is not a universally accepted view. See In re Garcia, 174 B.R. 529 (Bankr.W.D.Mo.1994). In this case the Court held that since the attorney fee award was payable “to the attorney” and not to the spouse, the debt was dischargeable. This view is also supported indirectly by the decision of the Sixth Circuit in the case of In re Perlin, 30 F.3d 39 (6th Cir.1994) where the Court of Appeals held that the attorneys had no standing to seek a determination in the bankruptcy court that the fees awarded to them in connection with their representation of a spouse because the fee award was to the spouse and not to them.

Be that as it may, the bankruptcy courts in this State uniformly held that there is no impediment to assert a claim of nondis-chargeability just because the attorney fee award was made payable directly to the attorneys and not to the former spouse. Baucom v. Baucom, 397 So.2d 345 (Fla. 3d DCA 1981); Hope v. Lipkin, 156 So.2d 659 (Fla. 3d DCA 1963).

This leaves for consideration the more difficult problem which is whether or not a fee award to attorneys by a domestic relations court comes within the exception to discharge under § 523(a)(5) of the Bankruptcy Code when the award is payable to the attorneys and where the ex spouse has no legal obligation to pay any fees to the attorneys at all. The bankruptcy court for the Southern District of Florida was faced precisely with this problem in the case of In re St. Laurent, supra where the Court held:

*118 This Court agrees that where an attorney who represents a debtor’s former spouse for services “in the nature of alimony, maintenance, or support” is awarded fees, the debt will be dischargeable under § 523(a)(5) if the fees are paid directly to the attorney and the debtor’s former spouse is not personally obligated. See, e.g. In re Williams, 703 F.2d 1055, 57 [1057] n. 3 (9th Cir.1983); In re Horner, 125 B.R. 458 (Bankr.W.D.Pa.1991); In re Linn, 38 B.R. 762 (9th Cir. BAP 1984). In such a case, the former spouse does not benefit from the payment and the purpose of the exception is not implemented.

It is true, however, that in the cases cited by the court in In re St. Laurent, supra, only Linn addressed the precise issue under consideration. In Linn the Bankruptcy Appeal Panel (BAP) in the Ninth Circuit held that the obligation of the former husband to pay fees were dischargeable because the payment of the award was the sole responsibility of the husband. In that case the award granted for services rendered by a psychiatrist to the former wife and for the son of the parties. In arriving at its conclusion, the Court held:

In the present case, it was the debtor alone who was ordered to pay the attorney and the psychiatrist. If these fees are not paid, the former wife and the child will not be liable. Excluding these debts from discharge will not further the bankruptcy goal of a fresh start unburdened by old debts, [citation omitted] Nor will it protect spouses, former spouses and children from being injured by a debtor’s discharge.

It is urged by the defendants that St. Laurent is inconsistent with Florida law. This argument misses the mark for obvious reasons but while the liability of a spouse for attorney fees in conjunction with a dissolution of marriage proceeding is controlled by Florida law, the character of that liability obviously must be determined by Federal law. This Court is not unaware of the decision of the Bankruptcy Court in In re Wisniewski 109 B.R. 926 (Bankr.E.D.Wis.1990) where the court held that an award of $2,000.00 attorney fees to Chapter 7 debtor’s former wife pursuant to a settlement agreement in a dissolution proceeding was intended to be for “support.” This was not dis-chargeable even though the wife waived maintenance, was employed, and the attorney forgave any remaining amount due from the wife. In Wisniewski the court concluded that the attorney’s charity toward the former spouse should not entitle the husband debtor to be released from this obligation. The Court in Wisniewski also cited the case of Siegel v. Smith, 65 B.R.

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Cite This Page — Counsel Stack

Bluebook (online)
177 B.R. 116, 1994 WL 739015, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brown-v-brown-in-re-brown-flmb-1994.