Carter v. Flagler Hospital, Inc. (In Re Carter)

411 B.R. 730, 22 Fla. L. Weekly Fed. B 14, 2009 Bankr. LEXIS 2432, 2009 WL 2870198
CourtUnited States Bankruptcy Court, M.D. Florida
DecidedApril 6, 2009
DocketBankruptcy No. 08-3458. Adversary No. 08-194
StatusPublished
Cited by5 cases

This text of 411 B.R. 730 (Carter v. Flagler Hospital, Inc. (In Re Carter)) 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
Carter v. Flagler Hospital, Inc. (In Re Carter), 411 B.R. 730, 22 Fla. L. Weekly Fed. B 14, 2009 Bankr. LEXIS 2432, 2009 WL 2870198 (Fla. 2009).

Opinion

ORDER GRANTING DEFENDANT’S MOTION TO DISMISS COUNTS TWO THROUGH FIVE FOR FAILURE TO STATE A CLAIM FOR RELIEF AND GRANTING DEFENDANT’S MOTION TO STRIKE ATTORNEYS’ FEES

PAUL M. GLENN, Chief Judge.

This Proceeding is before the Court to consider the Defendant’s Motion to Dismiss Counts Two through Five of Complaint and Strike Claim for Attorneys’ Fees.

Marcia Lynn Carter (the Plaintiff) commenced this adversary proceeding by filing a five count complaint against Flagler Hospital, Inc. (the Defendant). The Plaintiff alleges that the Defendant included certain personal information in a proof of claim filed in this case, and brings this action “for disallowance of claim, injunctive relief and contempt of court pursuant to 11 U.S.C. § 105, and to recover actual, punitive and compensatory damages, sanctions, attorney fees and costs for the Defendant’s willful and negligent actions that constitute *734 invasion of the plaintiffs privacy....” (Complaint, p. 1).

The Motion to Dismiss does not pertain to Count One of the Complaint, an action for disallowance of the claim, and the Plaintiff has withdrawn Count Two. At issue are Counts Three through Five of the Complaint. Count Three is an action for contempt of court and violation of court orders; Count Four is an action for contempt of court and violation of Federal Rule of Bankruptcy Procedure 9037; and Count Five is an action for invasion of privacy. In support of these causes of action, the Plaintiff maintains that the Court has the authority to protect a debtor and may do so by issuing sanctions and awarding damages pursuant to 11 U.S.C. § 105.

In its Motion to Dismiss, the Defendant contends that Count Three should be dismissed because 11 U.S.C. § 105(a) does not provide a private right of action, and also because the court orders referenced by the Plaintiff are not applicable. The Defendant contends that Count Four should be dismissed because 11 U.S.C. § 105(a) does not provide a private right of action, and also because any violation of Rule 9037 that occurred was remedied when Plaintiffs personal information was redacted from the proof of claim. The Defendant contends that Count Five should be dismissed because neither 11 U.S.C. § 105(a) nor 11 U.S.C. § 107(c) provides the Plaintiff with a private right of action, and further contends that although 11 U.S.C. § 107(b)(2) provides a private right of action, the Plaintiffs allegations are not sufficient to state a cause of action under either § 107(b)(2) or Florida law.

Background

On June 17, 2008, the Plaintiff filed a petition for relief under Chapter 7 of the Bankruptcy Code. The Defendant subsequently filed an unsecured claim in the Plaintiffs case in the amount of $280.51. Attachments to the Defendant’s claim displayed the Plaintiffs social security number, date of birth, account number, telephone numbers, and medical information. The Plaintiffs complaint alleges that the Plaintiff has suffered actual damages, and at the hearing Plaintiffs counsel referred to damages that the Plaintiff may encounter, such as having to obtain credit monitoring in the future due to the release of her information. (Tr. p. 8).

Discussion

The Motion to Dismiss is brought pursuant to Rule 12(b)(6), Fed.R.Civ.P., incorporated into this proceeding by Rule 7012, Fed. R. Bank. P., which provides that a complaint should be dismissed if it fails to state a claim upon which relief can be granted. A motion to dismiss pursuant to Rule 12(b)(6) should not be taken lightly, since granting a motion to dismiss for failure to state a claim effectively terminates a plaintiffs case on its merits. (See Chat-ham Condo. Ass’ns v. Century Village, Inc., 597 F.2d 1002, 1011-12 (5th Cir.1979)(quoting Mortensen v. First Fed. Sav. & Loan Ass’n, 549 F.2d 884, 891 (3d Cir.1977))). The applicable standard, as set forth by the United States Supreme Court, is that the “[fjactual allegations must be enough to raise a right to relief above the speculative level on the assumption that all of the allegations in the complaint are true.” Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 127 S.Ct. 1955, 1965, 167 L.Ed.2d 929 (2007). Further, while a complaint does not need detailed factual allegations, “a plaintiffs obligation to provide the grounds of his entitlement to relief requires more than labels and conclusions, and a formulaic recitation of the elements of a cause of action will not *735 do so.” Id. at 1964-65, 127 S.Ct. 1955. 1

A. 11 U.S.C. § 105

The Plaintiff seeks to have the Court sanction the Defendant and award damages pursuant to its powers under 11 U.S.C. § 105(a). Section 105(a) provides as follows:

11 U.S.C. § 105. Power of Court

(a) The court may issue any order, process, or judgment that is necessary or appropriate to carry out the provisions of this title. No provision of this title providing for the raising of an issue by a party in interest shall be construed to preclude the court from, sua sponte, taking any action or making any determination necessary or appropriate to enforce or implement court orders or rules, or to prevent an abuse of process.

11 U.S.C. § 105(a). (Emphasis supplied).

Courts have consistently held that § 105 does not itself create a private right of action. Although courts recognize that § 105 vests bankruptcy courts with statutory contempt powers, it “does not authorize the bankruptcy courts to create substantive rights that are otherwise unavailable under applicable law....” United States v. Sutton, 786 F.2d 1305, 1308 (5th Cir.1986)(citing Southern Ry. Co. v. Johnson Bronze Co., 758 F.2d 137, 141 (3d Cir.1985)). Specifically, the Sixth Circuit Court of Appeals has stated that “[w]e do not read § 105 as conferring on courts such broad remedial powers. The ‘provisions of this title’ simply denote a set of remedies fixed by Congress.

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Cite This Page — Counsel Stack

Bluebook (online)
411 B.R. 730, 22 Fla. L. Weekly Fed. B 14, 2009 Bankr. LEXIS 2432, 2009 WL 2870198, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carter-v-flagler-hospital-inc-in-re-carter-flmb-2009.