Edmonds v. Lawrence National Bank & Trust Co., N.A.

823 P.2d 219, 16 Kan. App. 2d 331, 1991 Kan. App. LEXIS 1094
CourtCourt of Appeals of Kansas
DecidedDecember 20, 1991
Docket66,506
StatusPublished
Cited by15 cases

This text of 823 P.2d 219 (Edmonds v. Lawrence National Bank & Trust Co., N.A.) is published on Counsel Stack Legal Research, covering Court of Appeals of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Edmonds v. Lawrence National Bank & Trust Co., N.A., 823 P.2d 219, 16 Kan. App. 2d 331, 1991 Kan. App. LEXIS 1094 (kanctapp 1991).

Opinion

Rulon, J.:

Plaintiffs Benny and Shirley Edmonds appeal a decision of the district court which granted summary judgment to defendant Lawrence National. Bank & Trust Co., N.A. We must decide two narrow issues: (1) Does the existence of federal sanctions for the filing of frivolous and malicious bankruptcy pleadings constitute an implicit rejection of state court remedies for a similar action; and (2) did the district court err in rejecting plaintiffs’ claim for malicious prosecution by holding that action was premature? We affirm the judgment of the district court. .

UNDISPUTED FACTS

Plaintiffs, tell us this case involves claims asserted by them against defendant for abuse of process and malicious prosecution arising from defendant’s filing of a complaint to revoke plaintiffs’ discharge granted by the U.S. Bankruptcy Court for the District of Kansas and defendant’s filing of a replevin action in the District Court of Douglas County. Plaintiffs contend that defendant’s primary purpose in filing these actions was to extract money from them for repayment of a debt which was previously discharged in bankruptcy or was never owed.

The district court granted summary judgment to defendant on plaintiffs’ claims, reaching the following conclusions: (1) Fed. R. *332 Civ. Proc. 11 and Fed. R. Bankr. Proc. 9011 preempt state causes of action seeking sanctions for alleged misuse of process in bankruptcy court; and (2) plaintiffs failed to state a claim upon which relief could be granted for either abuse of process or malicious prosecution.

STANDARD OF REVIEW

The standard of review of a decision granting summary judgment is stated in Bacon v. Mercy Hosp. of Ft. Scott, 243 Kan. 303, 306-07, 756 P.2d 416 (1988):

“The burden on the party seeking summary judgment is a strict one. The trial court is required to resolve all facts and inferences which may reasonably be drawn from the evidence in favor of the party against whom the ruling is sought. On appeal we apply the same rule, and where we find reasonable minds could differ as to the conclusions drawn from the evidence, summary judgment must be denied. [Citation omitted.] The party opposing summary judgment, however, has the affirmative duty to come forward with facts to support its claim, although it is not required to prove its case. [Citations omitted.] If factual issues do exist, they must be material to the case to preclude summary judgment. [Citation omitted.]”

Furthermore, the law is well settled that our review of questions of law is unlimited. Hutchinson Nat’l Bank & Tr. Co. v. Brown, 12 Kan. App. 2d 673, 674, 753 P.2d 1299, rev. denied 243 Kan. 778 (1988).

PREEMPTION

The plaintiffs contend the district court erred in granting the defendant’s summary judgment motion by holding that Fed. R. Civ. Proc. 11 and Fed. R. Bankr. Proc. 9011 preempt any state common-law actions for malicious prosecution or abuse of process arising from defendant’s complaint to revoke plaintiffs’ discharge filed in U.S. Bankruptcy Court. Plaintiffs do agree there are no contradicting facts regarding this issue.

“The Supremacy Clause of Art. VI of the Constitution provides Congress with the power to preempt state law.” Louisiana Public Service Comm’n v. FCC, 476 U.S. 355, 368, 90 L. Ed. 2d 369, 106 S. Ct. 1890 (1986). One method utilized to determine if Congress has preempted state law is to consider whether federal legislation has comprehensively occupied the entire “field of regulation and [left] no room for the States to supplement federal law.” 476 U.S. at 368.

*333 Defendant cites East-Bibb Twiggs Neighborhood v. Macon-Bibb Plan., 674 F. Supp. 1475 (M.D. Ga. 1987), for support that Rule 11 preempts state causes of action against abusive federal litigation. The East-Bibb court stated that:

“Congress has specifically addressed the problem of abusive litigation when it promulgated Rule 11 of the Federal Rules of Civil Procedure. By explicitly delineating what rights a defendant has when an abusive claim based upon federal law is brought against that party, Congress has simply pre-empted this entire area of the law . . . .” 674 F. Supp. at 1476-77.

Plaintiffs, on the other hand, argue that East-Bibb can be distinguished because there the court relied not only upon Rule 11, but on 42 U.S.C. § 1988 (1988) as it relates to frivolous actions regarding a 42 U.S.C. § 1983 cause of action. 674 F. Supp. at 1476.

The plaintiffs rely heavily on Cohen v. Lupo, 927 F.2d 363 (8th Cir. 1991), to support their contention that the area is not preempted by federal law. In Cohen a federal court awarded Rule 11 sanctions against eight plaintiffs. The defendants then sued the plaintiffs in federal court for the state cause of action for malicious prosecution. 927 F.2d at 364. The United States Court of Appeals for the Eighth Circuit found that Rule 11 sanctions have no res judicata effect on a claim for malicious prosecution. 927 F.2d at 365. The Cohen court stated that “Rule 11 is a procedural tool that under the Rules Enabling Act can not ‘abridge, enlarge or modify any substantive right.’ 28 U.S.C. § 2072.” 927 Fed. 2d at 365. Plaintiffs further contend that while East-Bibb appears to state Congress has preempted the area of abusive litigation, Cohen states that “Rule 11 can not abridge the substantive state law of malicious prosecution, nor was it adopted to serve as surrogate for an action based upon a claim of malicious prosecution resulting from frivolous, harassing, or vexatious litigation.” 927 F.2d at 365.

A federal case we believe more persuasive is Gonzales v. Parks, 830 F.2d 1033 (9th Cir. 1987), where Gonzales filed for bankruptcy and Parks filed an action in a California state court alleging that the bankruptcy filing was an abuse of process. The court stated:

“Implicit in the Parkses’ appeal is the notion that state courts have subject matter jurisdiction to hear a claim that the filing of a bankruptcy petition *334 constitutes an abuse of process. We disagree with that assumption.

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Bluebook (online)
823 P.2d 219, 16 Kan. App. 2d 331, 1991 Kan. App. LEXIS 1094, Counsel Stack Legal Research, https://law.counselstack.com/opinion/edmonds-v-lawrence-national-bank-trust-co-na-kanctapp-1991.