Bucknell Leasing Corp. v. Darwin (In Re Darwin)

22 B.R. 259, 6 Collier Bankr. Cas. 2d 1245, 1982 Bankr. LEXIS 3632
CourtUnited States Bankruptcy Court, E.D. New York
DecidedJuly 29, 1982
Docket8-19-70813
StatusPublished
Cited by31 cases

This text of 22 B.R. 259 (Bucknell Leasing Corp. v. Darwin (In Re Darwin)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bucknell Leasing Corp. v. Darwin (In Re Darwin), 22 B.R. 259, 6 Collier Bankr. Cas. 2d 1245, 1982 Bankr. LEXIS 3632 (N.Y. 1982).

Opinion

AMENDED OPINION

CONRAD B. DUBERSTEIN, Bankruptcy Judge.

INTRODUCTORY STATEMENT

This case presents a pattern of conduct which has been increasing in the metropolitan area where debtors seek the benefits of Chapter 13 of the Bankruptcy Code to prevent their being dispossessed from their apartments for non-payment of rent. Because the commencement of a bankruptcy case generally stays a creditor from instituting or continuing an action against the debtor or its property until the bank *260 ruptcy court orders otherwise, 1 the landlord’s efforts to oust the tenant is severely thwarted where the tenant files a Chapter 13 petition. Inasmuch as Chapter 13 enables the tenant-debtor to propose a plan to cure the rental arrears defaults over a reasonable period of time, 2 and provide adequate assurance for payment of current rent, 3 the existence of a lease between the parties as of the commencement of the case is of paramount importance and is crucial. This court holds that the facts present in this case justify a finding that at the time the debtor filed his petition for relief under Chapter 13, his lease had terminated, he had no rights thereunder, and the landlord, who has come into this court to oust him from possession, is entitled to have the automatic stay lifted so as to proceed to enforce its rights and remedies.

FACTS

The debtor, Franklin D. Darwin, filed a Chapter 13 petition pursuant to § 1301 et seq. of the Bankruptcy Code on January 21, 1982. The Chapter 13 statement and plan were thereafter filed on February 3, 1982. Debtor’s schedules list only two debts: a debt consisting of past due rent totalling $2,100 owed the debtor’s landlord, Bucknell Leasing Corporation (hereinafter “Buck-nell”) at the time of the filing of the petition and a student loan amounting to $1,500.

On May 3, 1982, Bucknell filed an adversary proceeding pursuant to Rule 701 et seq. of the Bankruptcy Rules seeking relief from the automatic stay so that it could proceed to evict the debtor from the rental premises. The complaint alleged in part that the landlord-tenant relationship between the debtor and Bucknell terminated on December 1, 1981, that the debtor owed $2,217.79 representing pre-petition rent and that he had failed to make current post-petition rent payments for the months of February, March and April. The debtor submitted an answer wherein he denied several of the landlord’s allegations relating to the tender of rent payments and the debtor’s willingness and ability to continue to make such payments. The monthly rent reserved in the lease was $375.29.

The matter was brought before this court on June 2, 1982 wherein, after hearing oral argument and giving due consideration, this court ruled in favor of Bucknell but stayed the effect of such decision for 30 days, upon the payment by the debtor of one month’s rent, to afford the debtor and his family an opportunity to find another place to live. This decision was memorialized in an order dated June 4, 1982, which provided the following:

“It is ORDERED, that the application is hereby granted, that the stay granted pursuant to 11 U.S.C. § 362 is vacated 30 days from the date this order is signed. Provided however, that the debtor is ordered to pay one month’s rent on or before June 8, 1982 or the stay will be vacated June 9, 1982.” 4

On June 10, 1982, the attorney for Buck-nell filed an affirmation stating that the one month’s rent was not paid and that it thus considered the stay vacated as of June 9,1982 in accordance with the order of June 4, 1982. The money was paid several days later. This court sought the good offices of Bucknell through its counsel, to allow Darwin to remain for the balance of the 30 day period, notwithstanding that the payment was not timely made. Bucknell agreed.

On July 3, 1982, Darwin, through new counsel, sought the issuance of an order by my colleague, Honorable Cecelia H. Goetz, in my absence, requiring Bucknell to show cause why the order of June 4, 1982 should not be changed to extend the stay in the order for an additional fifteen days. In addition, the order contained a stay of the *261 execution of the eviction until further order of this court. Judge Goetz issued the order and made the matter returnable before me on July 6, 1982. Again, after careful and thorough consideration this court denied the application.

The following represents the written findings of fact and conclusions of law upon which the decisions of June 2 and July 6, 1982 were based:

1. On February 19, 1981, the debtor and Bucknell entered into a lease agreement for the rental of an apartment by the debtor.

2. In August 1981, Bucknell as landlord commenced an action against the debtor as tenant in the Civil Court of the City of New York, County of Queens — Housing Part, for non-payment of rent. The matter was assigned to Judge Maurice Harbater.

3. On November 5,1981, an unconditional consent judgment was entered into before Judge Harbater in the sum of $925.40 covering past due rent for the period from August 1, 1981 to October 31, 1981 inclusive, with payment to be made by the debt- or on or before November 15, 1981.

4. On December 1, 1981, as a result of the debtor’s failure to comply with the unconditional consent judgment, a warrant of eviction was issued by Judge Harbater to the Marshal of Queens County.

5. On December 22, 1981, a 72 hour notice was served on the debtor, as required by R.P.A.P.L. § 749. The eviction was scheduled for January 6, 1982.

6. On January 5, 1982, the debtor presented an order to show cause to Judge Harbater why the warrant of eviction should not be vacated, which order was signed on that date. The order provided for the staying of the eviction pending a hearing on the motion to vacate the warrant, the latter being made returnable on January 13, 1982.

7. On January 13, 1982, the following decision was rendered by Judge Maurice Harbater on the motion to vacate the judgment:

“This was an unconditional consent judgment for $925.40 covering all rent through 10/31/81 on 11/5/81. Stay was 11/15/81.
There is no proof that T [tenant] mailed the money to L [landlord] on 11/14/81 and no proof that L returned the money to T by mail (no envelope of L).
Tenant could have deposited with the Clerk of the Court as warrant was not issued to marshal until 12/1/81.
The tenant waited until a 72 hour notice was served with the Tenant now owing, in addition to the judgment, the months of Nov. Dec. & Jan.
The L & T relationship has terminated and no good cause has been shown to vacate warrant, etc.
Denied—
/s/ MH
Maurice Harbater

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Bluebook (online)
22 B.R. 259, 6 Collier Bankr. Cas. 2d 1245, 1982 Bankr. LEXIS 3632, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bucknell-leasing-corp-v-darwin-in-re-darwin-nyeb-1982.