Chapman v. Burton Berger & Associates (In Re Chapman)

154 B.R. 258, 1993 WL 146752
CourtUnited States Bankruptcy Court, N.D. Illinois
DecidedApril 4, 1993
Docket19-04101
StatusPublished
Cited by13 cases

This text of 154 B.R. 258 (Chapman v. Burton Berger & Associates (In Re Chapman)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chapman v. Burton Berger & Associates (In Re Chapman), 154 B.R. 258, 1993 WL 146752 (Ill. 1993).

Opinion

MEMORANDUM OPINION ON DEFENDANTS’ MOTIONS TO DISMISS

JACK B. SCHMETTERER, Bankruptcy Judge.

Debtor Plaintiff Lamar Chapman filed this pro se adversary complaint seeking various forms of relief against defendants Burton Berger & Associates (“BB & A”) and Judge James Gregory Smith of the Circuit Court of Cook County, Illinois. Both defendants responded by motions to dismiss pursuant to Fed.R.Civ.P. 12(b)(6), (Fed.R.Bankr.P. 7012). BB & A’s motion also asks this Court to impose sanctions on Mr. Chapman pursuant to Rule 11, Fed. R.Civ.P. (Fed.R.Bankr.P. 9011). For reasons stated below, the motions to dismiss are granted. Debtor’s adversary complaint is dismissed with prejudice as to defendant BB & A. Since this Court has only related jurisdiction over the complaint against Judge Smith, it is recommended that the District Court dismiss the Complaint against him with prejudice.

PROCEDURAL BACKGROUND

Plaintiff and his wife filed their petition for relief pursuant to Chapter 13 of the Bankruptcy Code, 11 U.S.C. §§ 1301 et seq., on June 30, 1992. As of this date, no plan has been confirmed.

BB & A filed its proof of claim in this bankruptcy proceeding on October 22, 1992, claiming an unsecured debt in the amount of $20,350. The basis for this claim is a judgment order entered on June 26, 1992 by defendant Judge Smith in a case before him. That order provided that “Judgment is entered in favor of Burton Berger & Assoc, and against Lamar C. Chapman III in the amount of $20,350.00 as [illegible] for sanctions.” The instant adversary complaint relates to that judgment and the BB & A claim based thereon. Indeed, as to BB & A, this case amounts to a defense and counterclaim to the BB & A claim.

PLAINTIFF’S ALLEGATIONS

Debtors assert that “the Proof of Claim as filed by BB & A is a fraudulent claim based on a State Court judgment void on its face for lack of trial court jurisdiction over the parties.” The basis for this assertion is then explained:

It is alleged that Lamar Chapman filed an action entitled Lamar C. Chapman, III v. Currie Motors, Incorporated, Abraham Jaffe, Steven Jankelow, James Hoffman, *261 and unknown owners, No. 90 Ml-134636 in 1990. That complaint was based on an alleged determination by the Illinois Department of Labor that Currie Motors was liable to Mr. Chapman for unpaid wages due pursuant to the Illinois Wage Payment and Collection Act, 820 ILCS 115/1 et seq. (formerly Ill.Rev.Stat. Ch. 48, §§ 39m-1 et seq.). See Complaint, Exs. A & B. On December 13, 1991, a default judgment was entered against state court defendant Steven Jankelow and in favor of Mr. Chapman in the amount of $202,574.25 plus costs. Exs. C & D. Mr. Burton Berger of BB & A represented the defendants in this action.

That judgment was later voided by order of Judge Smith on February 6, 1992, and Mr. Chapman’s suit was dismissed. Plaintiff contends that this judicial order was not entered pursuant to notice. See Complaint, Count I, II25 (“without notice, motion or jurisdiction, defendant Burton Berger & Associates, acting in conjunction with defendant James Gregory Smith entered a State Court Order ... ”).

On June 26, 1992, sanctions were awarded against Mr. Chapman in the amount of $20,350.00. He now asserts that this sanction was not entered pursuant to a previously filed motion. See Complaint Count II, ¶ 20 (“This Order of Sanctions was entered without notice or petitions being filed with the Clerk of the Circuit Court”).

Plaintiff pleads that the firm of- BB & A and Judge Smith acted in conjunction to deprive Mr. Chapman of his rights in violation of 42 U.S.C. § 1983, and he seeks damages in the amount of the allegedly valid judgment against Mr. Jankelow.

Jurisdiction

This matter is before the Court pursuant to 28 U.S.C. § 157 and is referred here under Local District Court Rule 2.33. Subject matter jurisdiction lies under 28 U.S.C. § 1334(b).

Since the Plaintiff-Debtor is objecting to BB & A’s proof of claim as well as filing a counterclaim thereto, the controversy between this Debtor and BB & A is a core proceeding under 28 U.S.C. § 157(b)(2)(B) and (C). In re Chapman, 132 B.R. 132, 142 (Bankr.N.D.Ill.1991).

However, the controversy between Plaintiff and Judge Smith consists of a claim for damages under 42 U.S.C. § 1983. This action does not invoke any substantive right provided by the Bankruptcy Code, and it certainly could arise outside the context of a bankruptcy case. Therefore, the Court has only “related to” jurisdiction over the controversy between Plaintiff and Judge Smith. See Diamond Mortgage Corp. of Ill. v. Sugar, 913 F.2d 1233, 1239 (7th Cir.1990), cert. denied, 498 U.S. 1089, 111 S.Ct. 968, 112 L.Ed.2d 1054 (1991), quoting Barnett v. Stern, 909 F.2d 973, 981 (7th Cir.1990) (“a proceeding is core under section 157 if it invokes a substantive right provided by title 11 or if it is a proceeding that, by its nature, could arise only in the context of a bankruptcy case").

Procedural Standards for Motions to Dismiss

In order for Defendants to prevail on their motions to dismiss, it must appear from the pleadings that the Plaintiff can prove no set of facts in support of his claims which would entitle him to relief. Conley v. Gibson, 355 U.S. 41, 45-46, 78 S.Ct. 99, 101-02, 2 L.Ed.2d 80 (1957); Gorski v. Troy, 929 F.2d 1183, 1186 (7th Cir. 1991). The issue is not whether the Plaintiff can ultimately prevail, but whether he has pleaded a cause of action sufficient to entitle him to offer evidence in support of his claims. Scheuer v. Rhodes, 416 U.S. 232, 236, 94 S.Ct. 1683, 1686, 40 L.Ed.2d 90 (1974); Perkins & Gaynor v. Silverstein et al., 939 F.2d 463, 466 (7th Cir.1991).

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Cite This Page — Counsel Stack

Bluebook (online)
154 B.R. 258, 1993 WL 146752, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chapman-v-burton-berger-associates-in-re-chapman-ilnb-1993.