Chapman v. Currie Motors, Inc. (In re Chapman)

154 B.R. 267, 1993 Bankr. LEXIS 735
CourtUnited States Bankruptcy Court, N.D. Illinois
DecidedMay 4, 1993
DocketBankruptcy No. 92 B 14548; Adv. No. 92 A 1501
StatusPublished
Cited by1 cases

This text of 154 B.R. 267 (Chapman v. Currie Motors, Inc. (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. Currie Motors, Inc. (In re Chapman), 154 B.R. 267, 1993 Bankr. LEXIS 735 (Ill. 1993).

Opinion

MEMORANDUM OPINION ON DEFENDANT’S MOTIONS TO DISMISS

JACK B. SCHMETTERER, Bankruptcy Judge.

Debtor Plaintiff Lamar Chapman filed this pro se adversary complaint seeking to disallow the claim filed by defendant Currie Motors, Inc. (“Currie Motors”) and to force Currie Motors to pay a judgment allegedly due to Debtor. Currie Motors moved to dismiss pursuant to Fed.R.Civ.P. 12(b)(6), and for sanctions under Fed.R.Bankr.P. 9011. For reasons stated below, the motion of Currie Motors is allowed. By separate order, debtor’s complaint is dismissed, and the motion for sanctions is set for hearing.

PROCEDURAL BACKGROUND

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

Currie Motors filed its proof of claim in this bankruptcy proceeding on October 29, 1992, claiming an unsecured debt in the amount of $710.35. The basis for this claim is a judgment order entered on May 22,1992 by the Circuit Court of Cook County in Chapman v. Currie Motors, Case No. 90 Ml 134636, which states:

This cause coming on the 2 petitions of defendants Currie Motors ... for sanctions[,] fees [and] costs[;] the court having [sic] arguments from Mr. Chapman and the attorney for defendants:
It is hereby ordered that the defendants Currie Motors ... are awarded [illegible] costs in the amount of $710.35, and Judgment is hereby entered in their favor and against Lamar Chapman III in the amount of $710.35 and execution to issue thereon....

FACTUAL ALLEGATIONS

Paragraphs 6 through 15 of Chapman’s complaint purports to respond to this claim. Chapman admits that Currie Motors has a judgment against him by admitting to I1111-5 of the proof of claim. The only assertion that Chapman denies is the statement in II 6 of the form which states, “[t]he amount of all payments on this claim has been credited and deducted for the purpose of making this proof of claim. In filing this claim, claimant has deducted all amounts that claimant owes to debtor.” The basis for Chapman’s position is that Currie Motors owes him money for a judgment allegedly entered in that same state court ease.

Chapman then goes on to allege that he was formerly employed by Currie Motors and obtained a judgment against it based on a default judgment entered on May 4, 1992. Attached to the complaint is a docket entry in Case No. 90 Ml 134636 which states that “Default and Conditional Judgment vs. (employer) defendant Currie Motors ($204,621.79) ... ”. There is also a notation in the entry which states, “EMPLOYER SUM.FLD.RET.SERV[the remainder of this word is illegible]”. This order was allegedly entered because Currie Motors failed to appear in court or answer a summons. Based on this conditional default judgment, Chapman alleges that Cur-rie Motors owes him $204,621.79 which must be set off against Currie’s claim and the balance paid to him. Complaint, ¶ b. Based on his prayer for relief, the Court treats Chapman’s request for payment on [269]*269his judgment as a counterclaim filed in response to Currie Motors’ claim.

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 Chapman is objecting to Currie Motors’ proof of claim as well as filing a counterclaim thereto, the controversy between them 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).

Procedural Standards for Motions to Dismiss

In order for the defendant to prevail on its motion 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, 101-102, 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). When reviewing a motion to dismiss, the court must consider both well-pleaded facts and reasonable inferences drawn therefrom in a light most favorable to the plaintiff. Gorski v. Troy, 929 F.2d at 1186; Corcoran v. Chicago Park District, 875 F.2d 609 (7th Cir.1989).

Facts Outside the Complaint Argued by Defendants

In its arguments, Currie Motors referred to facts and documents outside of the complaint which are asserted to establish that Mr. Chapman’s asserted judgment against it was later voided by subsequently entered state court orders. These facts were not referenced in Chapman’s complaint. Therefore, they are outside of the pleadings. See Venture Associates Corp. v. Zenith Data Systems Corp., 987 F.2d 429 (7th Cir.1993) (“Documents that a defendant attaches to a motion to dismiss are consideréd part of the pleadings if they are referred to in the plaintiff’s complaint and are central to her claim”).

Rule 12(b), Fed.R.Civ.P. (Fed.R.Bankr.P. 7012) provides,

If, on a motion ... to dismiss for failure. of the pleading to state a claim upon which relief can be granted, matters outside the pleading are presented to and not excluded by the court, the motion shall be treated as one for summary judgment and disposed of as provided in Rule 56, and all parties shall be given reasonable opportunity to present all material made pertinent to such a motion by Rule 56.

Rule 12(b) thus presents a trial court with a choice when movants present materials beyond the pleadings. A court can either accept the materials and treat the motion as one for summary judgment under Fed.R.Civ.P. 56

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154 B.R. 267, 1993 Bankr. LEXIS 735, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chapman-v-currie-motors-inc-in-re-chapman-ilnb-1993.