Ciccimaro v. Emore (In Re Ciccimaro)

364 B.R. 184, 2007 Bankr. LEXIS 2279, 2007 WL 777853
CourtUnited States Bankruptcy Court, E.D. Pennsylvania
DecidedMarch 12, 2007
Docket19-11206
StatusPublished
Cited by2 cases

This text of 364 B.R. 184 (Ciccimaro v. Emore (In Re Ciccimaro)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ciccimaro v. Emore (In Re Ciccimaro), 364 B.R. 184, 2007 Bankr. LEXIS 2279, 2007 WL 777853 (Pa. 2007).

Opinion

MEMORANDUM

BRUCE FOX, Bankruptcy Judge.

Defendant Jacqueline F. Emore has filed a motion to dismiss the above-captioned adversary proceeding, contending either that the plaintiff seeks an advisory opinion or that the issues posed can and should be decided by the state court. Defendant Maria Ciccimaro seeks summary judgment for the same reasons. The plaintiff opposes dismissal or summary judgment, initially contending that there are material facts in dispute, that no advisory opinion is sought, and that his complaint states a cause of action which must be first resolved in this court before any further adjudication is undertaken by the parties in state court. As will be discussed below, he now maintains that this proceeding has effectively been settled and only the issue of counsel fees remains.

After hearing oral argument on these two motions, it became apparent that both defendants were relying upon documents and representations beyond those found in the plaintiffs complaint. For the reasons stated in a memorandum dated January 16, 2007, I instructed the parties that I would consider defendant Emore’s motion *186 to dismiss as one for summary judgment, and that copies of state court pleadings and orders entered of record in an earlier contested matter (to reopen this bankruptcy case) would be considered in determining defendants’ two motions for summary judgment. I also set deadlines for the parties to submit affidavits and other documents in conformity with Fed. R. Bankr.P. 7056 (incorporating Fed.R.Civ.P. 56). All three parties have submitted affidavits in support of their respective positions. Thus, properly before me are the defendants’ two motions for summary judgment. 1

I.

The following facts are undisputed.

On October 20, 2003, the debtor filed a voluntary petition in bankruptcy under chapter 7. He received a chapter 7 discharge under 11 U.S.C. § 727 on March 4, 2004. Thereupon, his bankruptcy case was closed on March 8, 2004, pursuant to 11 U.S.C. § 350(a).

On June 5, 2006 — more than two years after his case was closed — the debtor sought to reopen the bankruptcy case, see 11 U.S.C. § 350(b), alleging that defendants Emore and Ciccimaro were violating the statutory discharge injunction found in section 524(a) by positions taken in connection with the Ciccimaros’ pending state court divorce action.

During the pendency of his 2003 bankruptcy case, the debtor and Mrs. Ciccima-ro were opposing parties in a divorce action in the Montgomery County Court of Common Pleas, docketed in the state court at No. 03-00043. In Mr. Ciccimaro’s bankruptcy schedules, he listed his wife as a co-debtor (but not a creditor) and Ms. Emore as an unsecured creditor. 2

In July 2004, Ms. Emore brought suit against Ms. Ciccimaro (who is her daughter) in state court. This civil action was based upon a loan made by Ms. Emore to the Ciccimaros prior to Mr. Ciccimaro’s bankruptcy filing. Ms. Emore obtained a judgment against Ms. Ciccimaro by default in the amount of $71,414.88 on March 16, 2005.

On May 12, 2005, the state court entered a decree in divorce. That order further provided that issues of equitable distribution of marital property, alimony, and counsel fees would later be determined. Prior to any such resolution, and after learning of Ms. Emore’s judgment against Ms. Ciccimaro, on January 11, 2006, Mr. Ciccimaro filed an emergency petition in state court seeking to join Ms. Emore as a party in the divorce litigation and seeking to enjoin Ms. Emore from executing on her judgment against the proceeds of the impending sale of the marital home.

Thereafter, Ms. Emore filed her own petition to intervene in the divorce litigation. Her intervention petition alleged that she had lent to the Ciccimaros $65,000 to aid them in the purchase of their family residence, and mortgaged her home to obtain those funds. When the loan payments ceased, she brought suit against her daughter and obtained a judgment. She further asserted that intervention was appropriate as her daughter has no assets that are not marital assets. Upon the filing of Ms. Emore’s petition to intervene, Mr. Ciccimaro withdrew his own petition to join Ms. Emore as a party.

*187 At oral argument, it was undisputed that the marital residence had been sold after the original closure of Mr. Ciccimaro’s bankruptcy case, and the net proceeds of sale, $111,000, were placed in escrow. The parties’ present dispute concerns these funds, which are acknowledged by all to be marital property subject to equitable distribution under Pennsylvania law. See 23 Pa.C.S.A. § 3501(a) (defining marital property, with certain exceptions, as “all property acquired by either party during the marriage and the increase in value of any nonmarital property [during the marriage]”).

In seeking to reopen this bankruptcy case and proceed with litigation to enforce the discharge injunction, Mr. Ciccimaro was concerned that if Ms. Emore’s petition to intervene were granted, she would request of the state court that her judgment against Ms. Ciccimaro be satisfied prior to the equitable division of funds from the parties’ marital assets: viz., the realty sale proceeds held in escrow. Such a distribution method, the debtor believed, would obligate his equitable distribution portion of the realty sale proceeds to be used to repay a portion of Ms. Emore’s discharged debt, in violation of 11 U.S.C. § 524(a).

For reasons previously detailed in a memorandum dated September 7, 2006, I felt that the state court judicial system was capable of addressing this issue — see, e.g., Cohen v. Goldberg, 554 Pa. 201, 720 A.2d 1028 (1998); Hogg v. Hogg (In re Hogg), 816 A.2d 314 (Pa.Super.2003) — and thus could provide Mr. Ciccimaro any relief under section 524(a) to which he might be entitled. Therefore, I was disinclined to reopen his closed bankruptcy case solely for an adjudication regarding the scope of the bankruptcy discharge injunction as it applied to equitable distribution. See generally In re Apex Oil Co., Inc., 406 F.3d 538, 543 (8th Cir.2005).

However, in his bankruptcy case, Mr. Ciccimaro had disclosed that there was only $5,000 in equity in the marital residence. Yet, after the case was closed, the realty was sold yielding $111,000 in net proceeds.

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Bluebook (online)
364 B.R. 184, 2007 Bankr. LEXIS 2279, 2007 WL 777853, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ciccimaro-v-emore-in-re-ciccimaro-paeb-2007.