Floody v. Kearney (In Re Kearney)

433 B.R. 640, 2010 WL 2639882
CourtUnited States Bankruptcy Court, S.D. Texas
DecidedJune 24, 2010
Docket17-30369
StatusPublished
Cited by6 cases

This text of 433 B.R. 640 (Floody v. Kearney (In Re Kearney)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Floody v. Kearney (In Re Kearney), 433 B.R. 640, 2010 WL 2639882 (Tex. 2010).

Opinion

MEMORANDUM OPINION ON PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT UNDER § 523(a)(15) *643 OF THE BANKRUPTCY CODE 1

[Adv. Doc. No. 10]

JEFF BOHM, Bankruptcy Judge.

I. Introduction

The issue facing this Court involves what appears to be the latest in a series of disputes continuing since the parties’ divorce on September 26, 2005, in the Superior Court of Fulton County, Georgia. [Plaintiffs Ex. No. 5]. Prior to marriage, James H. Floody (the Plaintiff) and Christina Ann Kearney (the Defendant) entered into a prenuptial agreement, in which they agreed that the property located at 12900 Old Course Dr., Roswell, Georgia (the Property) would remain the Plaintiffs sole and separate property (the Prenuptial Agreement). [Plaintiffs Ex. No. 1]. During the pendency of the divorce, on November 21, 2005, the Defendant’s attorney filed a lis pendens on the Property. [Plaintiffs Ex. No. 4]. The Georgia court entered both the Final Judgment and Decree and the Final Order Effecting Equitable Division of Property in the divorce on February 17, 2006 (the Divorce Decree). [Plaintiffs Ex. No. 5]. In the Divorce Decree, the Georgia court explicitly noted its previous ruling that the Prenuptial Agreement was enforceable. [Plaintiffs Ex. No. 5].

While trying to sell his house in 2008, following the issuance of the Divorce Decree, the Plaintiff discovered that the Defendant never removed the lis pendens. [Plaintiffs Ex. No. 6]. On March 27, 2008, the Plaintiff filed a Petition for Citation of Contempt against the Defendant in the same Georgia court, alleging that the Defendant had not removed the lis pendens after the Plaintiffs request, and that the lis pendens caused a loss of profits from the sale of his home. [Plaintiffs Ex. No. 6]. On June 28, 2008, the Georgia court entered a Temporary Order ordering the Defendant to remove the lis pendens. [Plaintiffs Ex. No. 7].

The Defendant then filed the Notice of Dismissal of Lis Pendens on July 2, 2008, [Plaintiffs Ex. No. 8] and the parties entered into a settlement agreement. [Plaintiffs Ex. No. 10]. On November 3, 2008, the Georgia court incorporated the terms of that settlement agreement, including the specific terms of payment, in its Final Order on Plaintiffs Motion for Contempt (the First Contempt Order). [Plaintiffs Ex. No. 10]. The Georgia court noted that the Defendant agreed to reimburse the Plaintiff for travel and filing costs associated with the contempt action. [Plaintiffs Ex. No. 6]. The Georgia court also enjoined the parties from engaging in harassing or threatening behavior toward each other. [Plaintiffs Ex. No. 10]. Lastly, and of chief importance, the Georgia court ordered that “the [p]arties are forever barred from filing or threatening to file any more claims against the other, lawsuits and/or actions which arise out of the marriage and divorce of the parties, except as to the default of this agreement.” [Plaintiffs Ex. No. 10].

Despite the settlement and the subsequent court order, the Defendant failed to make the payments toward the debt owed to the Plaintiff that were required under the order. The Plaintiff then filed another Petition for Citation of Contempt in the same court, alleging that the Defendant had not complied with the payment terms *644 of the First Contempt Order. [Plaintiffs Ex. No. 11]. In response, the Defendant filed a Motion to Dismiss for Lack of Personal Jurisdiction. [Plaintiffs Ex. No. 13]. The Georgia court held a hearing in the case on June 23, 2009, and subsequently-entered the Final Order Re: Contempt (the Second Contempt Order) on July 15, 2009. [Plaintiffs Ex. No. 15]. The Georgia court, pursuant to section 9-10-91(5) of Georgia’s long arm statute, held that a Georgia state court may exercise personal jurisdiction over any non-resident “with respect to proceedings for alimony, child support, or division of property in connection with an action for divorce.” [Plaintiffs Ex. No. 15]. Rejecting the Defendant’s personal jurisdiction argument, the Georgia court ruled that the issue was a “contempt arising out of an [o]rder of the [c]ourt in relation to the partiesf] divorce case.” [Plaintiffs Ex. No. 15].

On August 19, 2009, the Defendant filed a Chapter 7 bankruptcy petition in this Court. [Case No. 09-36017-H4-7, Doc. No. 1]. The Defendant listed the $10,000.00 owed to the Plaintiff as an unsecured debt incurred on June 4, 2008. [Case No. 09-36017-H4-7, Doc. No. 2],

II. Procedural Background

On October 6, 2009, the Plaintiff, representing himself pro se, initiated this adversary proceeding under § 523(a)(6) and § 523(a)(15). 2 [Adv. Doc. No. 22], On March 29, 2010, the Plaintiff filed his Motion for Collateral Estoppel and Summary Judgment Under § 523(a)(6) of the Bankruptcy Code [Adv. Doc. No. 9] and Motion for Collateral Estoppel and Summary Judgment under § 523(a)(15) of the Bankruptcy Code (the Motion) [Adv. Doc. No. 10]. On April 14, 2010, the Defendant, representing herself pro se, filed Defendant’s Answer to Plaintiffs Motion for Collateral Estoppel And Summary Judgment Under § 523(a)(6) of the Bankruptcy Code. [Adv. Doc. No. 11], The Defendant also filed Defendant’s Answer to Plaintiffs Motion for Collateral Estoppel and Summary Judgment Under § 523(a)(15) of the Bankruptcy Code (the Response). [Adv. Doc. No. 12],

In the Motion, the Plaintiff asserts twelve factual allegations, alleging that each element of collateral estoppel as applied to § 523(a)(15) is met. [Adv. Doc. No. 10]. The Defendant has denied the allegation that the Defendant filed a lis pendens on the Property, and responded to the remaining allegations only by summarily asserting that they “ha[ve] no merit as to the dischargeability of this case.” [Adv. Doc. No. 12]. The Defendant attached no affidavits or documentary evidence in contravention of the exhibits that the Plaintiff attached to the Motion. 3

*645 III. Conclusions of Law

A. Jurisdiction and Yenue

The Court has jurisdiction over this dispute pursuant to 28 U.S.C. §§ 1334(b) and 157(a). This dispute is a core proceeding pursuant to 28 U.S.C. § 157(b)(2)(A), (J), (0), and the general “catch-all” language of 28 U.S.C. § 157(b)(2). See In re Southmark Corp., 163 F.3d 925, 930 (5th Cir.1999) (“[A] proceeding is core under section 157 if it invokes a substantive right provided by title 11 or if it is a proceeding that, by its nature, could arise only in the context of a bankruptcy case.”); De Montaigu v. Ginther (In re Ginther Trusts),

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Cite This Page — Counsel Stack

Bluebook (online)
433 B.R. 640, 2010 WL 2639882, Counsel Stack Legal Research, https://law.counselstack.com/opinion/floody-v-kearney-in-re-kearney-txsb-2010.