Burger King Corp. v. Wilkinson (In re Wilkinson)

89 B.R. 885, 19 Collier Bankr. Cas. 2d 1005, 1988 Bankr. LEXIS 1367
CourtUnited States Bankruptcy Court, D. Kansas
DecidedAugust 24, 1988
DocketBankruptcy No. 85-20111-7C; Adv. No. 87-0248
StatusPublished
Cited by2 cases

This text of 89 B.R. 885 (Burger King Corp. v. Wilkinson (In re Wilkinson)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Burger King Corp. v. Wilkinson (In re Wilkinson), 89 B.R. 885, 19 Collier Bankr. Cas. 2d 1005, 1988 Bankr. LEXIS 1367 (Kan. 1988).

Opinion

[886]*886MEMORANDUM OPINION AND ORDER

BENJAMIN E. FRANKLIN, Chief Judge.

This matter came for hearing on June 30, 1988, on plaintiff Burger King Corporation’s motion to reconsider, alter, or amend order of dismissal, and motion to file response out of time. The plaintiff appeared through counsel, J.B. King. The defendant, John Ercy Wilkinson, appeared through counsel, Phillip Turner.

FINDINGS OF FACT

After hearing statements of counsel, examining the files, exhibits and statements therein, the Court finds as follows:

1. On January 30, 1985, John Ercy Wilkinson (Case No. 85-20111), Marianne Wilkinson (Case No. 85-20112), and B-K of Kansas, Inc. (Case No. 20110) filed separate petitions for relief under chapter 11 of Title 11, United States Code.

2. This Court takes judicial notice of all relevant pleadings in the above captioned bankruptcy case files.

3. On April 9, 1987, after various long and protracted court battles between Burger King Corporation and the above chapter 11 debtors, this Court converted the cases from chapter 11 to chapter 7 of Title 11, United States Code.

4. On October 20, 1987, the last day for filing complaints under section 523, Burger King Corporation filed the instant complaint (Adversary No. 87-0248) to determine the dischargeability of a debt under sections 523(a)(2)(A), 523(a)(4), and 523(a)(6) against both John Ercy Wilkinson and Marianne A. Wilkinson.

5. On November 18, 1987, John Wilkinson filed a motion to strike the complaint on various grounds including that it improperly joined the two bankruptcy cases.

6. On December 16, 1987, Burger King Corporation filed a motion for leave to amend the complaint to delete any references to Marianne Wilkinson (Case No. 85-20112). That same day the Court granted Burger King Corporation leave.

7. On December 23, 1987, Burger King Corporation filed the amended complaint.

8. On December 28, 1987, Wilkinson filed a notice of appeal of this Court’s order granting leave to amend and motion to stay order pending appeal.

9. On January 25, 1988, this Court denied the debtor’s motion to stay pending appeal.

10. On March 23, 1988, Wilkinson filed a motion to dismiss the amended complaint on various grounds including lack of service of process and lack of jurisdiction. On March 24, 1988, this Court set the matter for hearing on May 2, 1988.

11. On March 29, 1988, the Honorable Dale E. Saffels, United States District Judge for the District of Kansas, denied Wilkinson’s application for leave to appeal interlocutory order.

12. On April 28, 1988, Wilkinson submitted an order to this Court sustaining the motion to dismiss due to Burger King’s failure to file a written response within 20 days as required by Local U.S. District Court Rule 206(b). That same day this Court signed the Order of Dismissal and notified the parties that the May 2, 1988 hearing was no longer necessary.

13. On May 6, 1988, Burger King Corporation filed a motion to reconsider, alter, or amend the order of dismissal and a motion to file their response to the motion to dismiss out of time.

14. On May 17, 1988, Wilkinson filed a response to both motions.

15. On May 23, 1988, Burger King Corporation filed a reply to the response.

16. On June 30, 1988, this Court heard both motions and took the matters under advisement.

CONCLUSIONS OF LAW

The plaintiff, Burger King Corporation, presents two arguments in support of setting aside the order of dismissal and allowing the responses to be filed out of time, one procedural and one substantive.

[887]*887Procedurally, the plaintiff argues that this Court should not have signed the order of dismissal because the adverse party submitted the order without being directed to do so in violation of F.R.C.P. 58. As such, the plaintiff argues that they had no opportunity to object to the issuance of the order. However, this Court must reject this argument as a reason to overturn the order. This Court has since allowed the plaintiff the opportunity to object through the subsequent motions to reconsider and file out of time.

Substantively, the plaintiff primarily argues that, under Tenth Circuit cases and other case law, the dismissal was too severe a sanction and was an abuse of discretion. For the following reasons, this Court does not agree.

The Tenth Circuit case of Woodmore v. Git-N-Go, 790 F.2d 1497 (10th Cir.1986) recently addressed the use of dismissal as a sanction and the standards for abuse of discretion. In Woodmore, a local rule of the United States District Court for the Eastern District of Oklahoma required that parties submit a pretrial order by a Court ordered date, and that failure to do so would result in dismissal. The plaintiff failed to timely submit the pretrial order and on the following day the District Court sua sponte dismissed the case. The Tenth Circuit first reviewed the case law in this area:

The Supreme Court has held that a dismissal because of a lawyer’s repeated failures to meet court requirements does not penalize a client unjustly. Link v. Wabash Railroad Co., 370 U.S. 626, 633-34, 82 S.Ct. 1386, 1390-91, 8 L.Ed.2d 734 (1962). That case reserved decision on whether a single incident — in Link an unexplained absence from a pretrial conference — would justify dismissal. Id. at 634, 82 S.Ct. at 1390.
In Joplin v. Southwestern Bell Telephone Co., 671 F.2d 1274 (10th Cir.1982), we reversed the same district court involved here when it dismissed a case with prejudice for failure to file a pretrial memorandum. The pro se litigant in Joplin had made significant efforts to comply with the court’s pretrial instructions. The litigant filed an affidavit stating that he had contacted defense counsel for assistance and submitted a pretrial “order” with an explanation to the court before the memorandum was due. The court had not accepted the memorandum for filing. Id. at 1275-76. In those circumstances, we found the dismissal was an abuse of the court’s discretion.
Joplin is distinguishable on its facts and does not require reversal in this case. But other recent Tenth Circuit sanction cases do require reversal. In In re Baker, 744 F.2d 1438 (10th Cir.1984), the en banc court emphasized the trial court’s power to impose sanctions. But we strongly stressed that the punishment be imposed on the person at fault:
“It is the trial court’s duty, within the spirit of its total powers, including Rule 16, to impose sanctions and compensating awards of expenses, including attorney’s fees, in a manner designed to solve the management problem. If the fault lies with the attorneys, that is where the impact of sanction should be lodged.

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Related

In Re Leach
102 B.R. 805 (D. Kansas, 1989)
Burger King Corp. v. Wilkinson
98 B.R. 550 (D. Kansas, 1989)

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Bluebook (online)
89 B.R. 885, 19 Collier Bankr. Cas. 2d 1005, 1988 Bankr. LEXIS 1367, Counsel Stack Legal Research, https://law.counselstack.com/opinion/burger-king-corp-v-wilkinson-in-re-wilkinson-ksb-1988.