County of LaCrosse v. Stevens (In Re Stevens)

436 B.R. 107, 2010 Bankr. LEXIS 1583, 2010 WL 2010863
CourtUnited States Bankruptcy Court, W.D. Wisconsin
DecidedMay 17, 2010
Docket1-19-10595
StatusPublished
Cited by3 cases

This text of 436 B.R. 107 (County of LaCrosse v. Stevens (In Re Stevens)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, W.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
County of LaCrosse v. Stevens (In Re Stevens), 436 B.R. 107, 2010 Bankr. LEXIS 1583, 2010 WL 2010863 (Wis. 2010).

Opinion

*108 MEMORANDUM DECISION

ROBERT D. MARTIN, Bankruptcy Judge.

In 2005, defendant Heather Stevens filed a paternity action in LaCrosse County. When the parties were unable to resolve issues of custody and placement, the family court commissioner ordered a custody evaluation in November 2007. Three persons were appointed to a custody assessment team: a guardian ad litem, a member of the mediation and family court services division, and a child development specialist. The team filed its report recommending that Ms. Stevens’ placement be reduced in favor of the child’s father. The court adopted this recommendation on January 5, 2009. No child support payments were ever awarded.

On May 29, 2009, Ms. Stevens moved for a de novo review of the custody order. While the motion was pending, the parties engaged in a variety of legal maneuvers. The guardian ad litem recommended that Ms. Stevens be required to pay in to court $10,000 as a deposit before proceeding with an appeal, Ms. Stevens moved to have the deposit waived, but the court denied the motion, Ms. Stevens then moved to have a new guardian ad litem appointed. The court also denied this motion. Finally, in June 2009, counsel for Ms. Stevens and the guardian ad litem disagreed about Ms. Stevens’ access to the custody investigation file.

Ms. Stevens then withdrew her motion for a de novo hearing and entered into a stipulation and order with the child’s father. That agreement provided in great detail for the custody and placement of the minor child. After the parties reached this resolution, the court held a hearing on August 3, 2009 at which the fees of the custody team were discussed. Attorneys for both Ms. Stevens and the child’s father appeared, as did the guardian ad litem. In an order entered on August 24, 2009, the court found that the custody team was owed a total of $3,993.67. The sum was comprised of $3,331.17 in fees to the guardian ad litem, $225 in fees to the mediation service, and $437.50 in fees to the child development specialist. The court found this sum to be reasonable and directed that LaCrosse County pay the fees and be reimbursed by Ms. Stevens. The court declined to require the child’s father to pay any of the fees, finding that Ms. Stevens’ conduct was largely responsible for running up the fees. Pursuant to this order, the county paid the custody team members.

On September 21, 2009, Adam and Heather Stevens filed a chapter 7 petition. They scheduled the debt to the custody team as an unsecured, non-priority debt. LaCrosse County initiated this adversary proceeding on January 19, 2010, contending that the $3,993.67 it paid on Ms. Stevens’ behalf is a non-dischargeable domestic support obligation under 11 U.S.C. § 523(a)(5).

The Bankruptcy Code provides that a chapter 7 filing does not discharge an individual debtor’s “domestic support obligations.” 11 U.S.C. § 523(a)(5). The Code defines a domestic support obligation in relevant part as:

“a debt that accrues before, on, or after the date of the order for relief in a case under this title, including interest that accrues on that debt as provided under applicable nonbankruptcy law notwithstanding any other provision of this title, that is—
(A) owed to or recoverable by—
(i) a spouse, former spouse, or child of the debtor or such child’s parent, legal guardian, or responsible relative; or
(ii) a governmental unit;
*109 (B) in the nature of alimony, maintenance, or support (including assistance provided by a governmental unit) of such spouse, former spouse, or child of the debtor or such child’s parent, without regard to whether such debt is expressly so designated; (C) established or subject to establishment before, on, or after the date of the order for relief in a case under this title, by reason of applicable provisions of—
[•••]
(ii) an order of a court of record”

11 U.S.C. § 101(14A), The parties to this action agree that the debt is owed to a governmental unit and were established pursuant to the county court’s order. The only element they dispute is whether the debt is “in the nature of alimony, maintenance, or support.” It is the plaintiffs burden to demonstrate that the debt is non-dischargeable. In re McFarland, 84 F.3d 943 (7th Cir.1996). On the parties’ stipulated facts, the county has met this burden.

In determining the nature of the debt, neither Wisconsin law nor any designation adopted by the parties is disposi-tive. Rather, federal bankruptcy law governs. See, Sommer & McGarity, Collier Family Law and the Bankruptcy Code ¶ 6.03[1] (2009). A bankruptcy court may, however, look to state law for guidance in making this decision. Id.; In re Coleman, 37 B.R. 120 (Bankr.W.D.Wis.1984); In re Chambers, 36 B.R. 42 (Bankr.W.D.Wis.1984).

In Wisconsin, a guardian ad litem is charged with a statutory duty to “be an advocate for the best interests of a minor child as to paternity, legal custody, physical placement, and support.” Wis. Stat. § 767.407(4). A guardian ad litem is expected to advocate for the child before the court and to review and comment on mediation agreements, stipulations, parenting plans, and custody and placement studies. Id. Wisconsin law also authorizes county courts to commission legal custody and physical placement studies. Wis. Stat. § 767.405(14)(a). Those studies are to investigate matters including the condition of the home, the conduct of each parent, and “any other matter relevant to the best interest of the child.” Id.

Debts incurred pursuant to a statutory duty to act in the best interests of the child will almost inevitably be for support of a child, within the meaning of § 523(a)(5). In re Coleman, 37 B.R. at 124 In Coleman, this court held that a guardian ad litem’s fees for a custody determination and a contempt motion against one parent were non-dischargeable. This court recognized that, in general:

“The services of a guardian ad litem in the primary divorce proceeding, though extending beyond support to custody and visitation, are generally sufficiently connected to the core concern of the Code for protection of family obligations to except a reasonable fee for such services from discharge.”

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Cite This Page — Counsel Stack

Bluebook (online)
436 B.R. 107, 2010 Bankr. LEXIS 1583, 2010 WL 2010863, Counsel Stack Legal Research, https://law.counselstack.com/opinion/county-of-lacrosse-v-stevens-in-re-stevens-wiwb-2010.