Coones v. Federal Deposit Insurance Corp.

796 P.2d 803, 1990 Wyo. LEXIS 95, 1990 WL 124657
CourtWyoming Supreme Court
DecidedAugust 30, 1990
Docket89-209
StatusPublished
Cited by17 cases

This text of 796 P.2d 803 (Coones v. Federal Deposit Insurance Corp.) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Coones v. Federal Deposit Insurance Corp., 796 P.2d 803, 1990 Wyo. LEXIS 95, 1990 WL 124657 (Wyo. 1990).

Opinion

URBIGKIT, Justice.

The United States District Court for the District of Wyoming certified to this court the following three questions which arose during a bankruptcy case. The stated questions, which involve the statutory interpretation of Wyoming’s execution exemptions, are:

1. May a husband and wife each claim as exempt $2,000.00 of tools of trade under W.S. § l-20-106(b) (for a total of $4,000.00) when both are involved in the same occupation.’
2. May a rancher or farmer claim as exempt 75% of the proceeds derived from the sale of non-purchase money livestock under W.S. § 1-15-408.
3. May a rancher or farmer claim as exempt 75% of the value of the crops and livéstock offspring, planted or born after *804 the perfection of a security interest under W.S. § 1-15-408.

We answer “yes” to the first question and “no” to the last two questions.

FACTS

Appellants were married to one another and engaged in a farming/ranching operation at the time they filed a petition in the United States Bankruptcy Court for the District of Wyoming under Chapter 11 of the Bankruptcy Code. Appellee Federal Deposit Insurance Corporation acts as a receiver and seeks to recover the collateral listed in a Security Agreement between appellants and Stockmen’s Bank & Trust Company when appellants secured a loan from the bank. Pursuant to that petition, appellants each claimed $2,000 in value as a tools of trade exemption under W.S. 1-20-106(b) for a total of $4,000. They also claimed as exempt seventy-five percent-of the value of personal service earnings from the sale of livestock born and crops planted after the Security Agreement. The United States Bankruptcy Court for the District of Wyoming denied those claimed exemptions and that decision was 1 appealed to the United States District Court from which this certification is provided. Appellants argue Lingle State Bank of Lingle v. Podolak, 740 P.2d 392 (Wyo.1987) is materially relevant to the last two certified questions.

DISPOSITION OF CERTIFIED QUESTIONS

1. Joint or Sole Exemption When Two Business Participants File a Joint Petition

The first certified question involves the statutory interpretation of W.S. l-20-106(b) (June 1988 Replacement) as it relates to tools of trade exemptions:

The tools, a motor vehicle, team, implements or stock in trade of any person, used and kept for the purpose of carrying on his trade or business, not exceeding in value two thousand dollars ($2,000.00), or the library, instruments and implements of any professional person, not exceeding in value two thousand dollars ($2,000.00), are exempt from levy or sale upon execution, writ of attachment or any process out of any court in this state.

(Emphasis added.)

The United States Bankruptcy Court for the District of Wyoming decided, as appel-lee argues, that this statute permits only one exemption per business. This misinterprets the statute. The statute establishes an exemption for anyone and not only one exemption per enterprise. We see no difference between a husband and wife being jointly engaged in a farm operation and a husband being a farmer and the wife being a school teacher. With passage of the married women’s statute in 1876, now found in part in W.S. 20-1-202, 34-1-108 and 34-1-109, a husband and wife are each entitled to equal consideration and separate identity. These provisions of the Wyoming statutes, although pre-dating statehood, are required by provision in Wyo. Const, art. 6, § 1 mandating both the right to vote and the right of equality to enjoy civil, political and religious freedoms. See Coyne v. State ex rel. Thomas, 595 P.2d 970 (Wyo. 1979) and Ward Terry & Co. v. Hensen, 75 Wyo. 444, 297 P.2d 213, 216 (1956).

We decline to interpret the statutory phrase “any person” to mean other than that each person is allowed such exemptions when such an exemption can be claimed. Statutes must be construed so no part is inoperative or superfluous. Thomson v. Wyoming In-Stream Flow Committee, 651 P.2d 778 (Wyo.1982). Consequently, we hold that any or each person engaged in a business enterprise is entitled to the statutory $2,000 tools of the trade levy or execution sale exemption whether or not each may be jointly engaged in the same business or enterprise.

2. Sale Proceeds From Crops and Livestock as a Personal Earning Exemption

The second and third certified questions can be answered by joint discussion. The argument made by appellants ' presents thoughtfulness and ingenuity. All litigants recognize that the statute *805 which was involved in Podolak, 740 P.2d 392 no longer exists and appellants now seek to apply the Wyoming garnishment statute broadly to create an execution exemption. 1

Any definition of exemption is confined to statutory provisions. The general exemption statute, W.S. 1-20-101 through 1-20-110, does not provide any provision for earnings exemption. Appellants contend that a transferred application of the garnishment statute execution, W.S. 1-15-102, should provide a basis for holding contrary to the decision of the United States Bankruptcy Court for the District of Wyoming. Specifically, appellants contend that W.S. 1-15-408, Garnishment of Earnings for Personal Services, and the definition of earnings or earnings from personal services under W.S. l-15-102(a)(vi) allow a rancher or farmer to claim a seventy-five percent exemption of proceeds from the sale of non-purchase money livestock and seventy-five percent of the value of crops planted and livestock born after the security interest was perfected.

Podolak, 740 P.2d 392 provides no prece- . dent since the application in that case was one of garnishment and the defining statute was superceded by W.S. 1-15-102(a)(vi), which provides:

“Earnings” or “earnings from personal services” means compensation paid or payable for personal services, whether denominated as wages, salary, commission, bonus, proceeds of any pension or retirement benefits or deferred compensation plan or otherwise[.]

Appellants assert that the impact of 11 U.S.C. § 544, which provides a trustee for the estate with powers of a judgment creditor, inures to appellants as a debtor in possession under 11 U.S.C.

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Bluebook (online)
796 P.2d 803, 1990 Wyo. LEXIS 95, 1990 WL 124657, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coones-v-federal-deposit-insurance-corp-wyo-1990.