Crowley v. Crowley

715 S.W.2d 934, 1986 Mo. App. LEXIS 4625
Missouri Court of Appeals·Decided September 4, 1986·No. No. 13734·Published·Cited by 6 cases

Opinions

HOGAN, Presiding Judge.

This appeal is taken from an order distributing marital property pursuant to the provisions of § 452.330, RSMo Supp. 1984. The dispositive question — raised by motion to dismiss the appeal, but apparent from the record — is whether the trial court had jurisdiction to divide and assign the marital estate even though the petitioner and respondent had filed a joint Chapter 11 petition in the Bankruptcy Court for the Western Division of Missouri, and never attempted to obtain any release or modification of the “automatic stay” provision of the Bankruptcy Act of 1978, as amended, now codified as 11 U.S.C.A. §§ 362(a)(1) and (3) (West Supp.1986). Upon the record presented, we have concluded that the division of marital property is void and must be set aside.

On November 17, 1983, respondent Margaret Crowley, to whom we shall refer as the plaintiff, filed a petition for legal separation in the Circuit Court of Christian County. Thereafter, appellant Charles Crowley, to whom we shall refer as the defendant, filed a responsive pleading. The responsive pleading, for the most part, admitted the averments of the plaintiff’s petition, but also pleaded:

“9. Respondent advises that on the 27th day of October, 1983, Respondent and Petitioner filed a Joint Petition under Chapter 11 of the United States Bankruptcy Code, an action for reorganization, designated as Case No. 83-02837-S-11 in the United States Bankruptcy Court for the Western District of Missouri, Southern Division.
10. That pursuant to the United States Bankruptcy Code, upon the filing of said Petition automatic stay was granted by the bankruptcy court as part of an order for relief under said chapter whereby all actions to obtain possession of property of the bankruptcy estate are stayed. (11 USC, Section 362.) Accordingly, no action to divide any of the properly of the parties, marital or non-marital may be taken until such time as the automatic stay under Section 362 is lifted by the bankruptcy court, since the marital and non-marital property of the Petitioner and Respondent are a part of the bankruptcy estate.”

The defendant joined this responsive pleading with a petition for dissolution, averring in paragraph 5:

“Respondent states that there is marital property and marital debts to be divided. That they are to be divided upon the occurrence of the lifting of the automatic stay as alleged in Respondent’s Answer....”

By reply to the counterpetition, the plaintiff admitted the existence of the pendency of a joint Chapter 11 proceeding in bankruptcy, but denied that such action prevented the apportionment and distribution of [936] the marital property. We may note, parenthetically, that the evidence demonstrated and the trial court found that the marriage was irretrievably broken, and the trial court entered a decree of dissolution. Inasmuch as both parties averred that the marriage was irretrievably broken, the trial court was authorized to enter a decree of dissolution rather than the decree of legal separation requested by the plaintiff. O’Neal v. O’Neal, 673 S.W.2d 126, 127[1] (Mo.App.1984). That part of the decree dissolving the marriage became final long ago and is not in question on this appeal.

By way of general background, it may be said that the parties were married on September 14,1958, and were finally separated on October 8, 1983. They became the parents of three children, a female born February 21, 1960; a male child born December 18, 1961, and a second female bom January 27, 1969.

Both parties are well-educated, and in good health. At the time of trial, plaintiff was 43 years of age and the defendant was 47 years old. At the time of their separation, they had built up a large dairy farm operation. They owned nearly 800 acres of land, 132 head of cattle and a great deal of farming and dairy equipment. It is infera-ble from the record that the plaintiff assisted, at various times, in the management of the parties’ business operation. The plaintiffs evidence, on trial, was that the defendant was guilty of repeated marital infidelity and the defendant admitted as much. There was ample evidence to demonstrate that the marriage was irretrievably broken because the defendant had committed adultery and plaintiff found it intolerable to live with the defendant. Section 452.320.2(l)(a), RSMo 1978.

At the commencement of the trial, several amendments to the pleadings were allowed; specifically the plaintiff was permitted to amend her petition to request maintenance and attorney’s fees. It was also agreed that the parties’ two elder children were emancipated, and that the youngest child was 15 years of age. Counsel for plaintiff then announced to the trial court:

“MR. SWEERE: Your Honor, the parties are in bankruptcy, and it’s our contention at the present time,, there’s a negative net worth. The assets have substantial value, but they are secured and there are a number of secured— there are a number of debts against them, which results in a negative net figure from our point of view.
* * * * # *
THE COURT: Well, that aspect of the case is novel to me as an associate. As you all probably know, I don’t try a lot of divorce cases anyway, and I haven’t run into exactly this situation, so I’m going to have to give some thought to the issues that you raise with the pending bankruptcy.
MS. MILLER: Your Honor, if I might add, I was contemplating suggesting that perhaps we could brief what we see as the bankruptcy implications on the respective plans that we are submitting. I’m not a bankruptcy lawyer, but I can do some research, and if that would give some guidance to the Court, perhaps, I would be more than happy to do that. If the Court would rather not have that information, that’s fine, too.
MR. SWEERE: I think the matter — I think the bankruptcy aspects of the case, if the Court is liberal in allowing what effectively amounts to hearsay testimony, in terms of advice from their bankruptcy counsel, as to procedures and that stuff, a lot of that can come out in the testimony.
THE COURT: Well, I appreciate both of your suggestions, and probably will invite or insist on some further suggestions.
I don’t want myself or us to be here in a futile position of trying to solve or resolve something that the federal courts are going to set aside or be dealing with in a different way than we could here.
And so, I would need to know, frankly, the jurisdictional question of what I would actually have the authority to [937] do, that couldn’t be set aside or overridden by the federal courts.
MR. SWEERE: Judge Pudlowski [sic], to my understanding, at the hearing that we spoke of last week, indicated that if the Court felt the need to do so, it would enter whatever order was necessary to allow this hearing to proceed.
THE COURT: Well, we’ll just give it our best shot, I guess. Anything further in the way of preliminary motions, announcements, or arguments, or statements of suggestions?” (Emphasis ours.)

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Crowley v. Crowley, 715 S.W.2d 934, 1986 Mo. App. LEXIS 4625 (Mo. Ct. App. 1986).

715 S.W.2d 934 (Crowley v. Crowley) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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