Florida Outdoor Equipment, Inc. v. Deresinski (In Re Deresinski)

214 B.R. 35, 11 Fla. L. Weekly Fed. B 119, 38 Collier Bankr. Cas. 2d 1669, 1997 Bankr. LEXIS 1761, 31 Bankr. Ct. Dec. (CRR) 831, 1997 WL 688727
CourtUnited States Bankruptcy Court, M.D. Florida
DecidedNovember 3, 1997
DocketBankruptcy No. 96-7363-BKC-3P7, Adversary No. 97-95
StatusPublished
Cited by5 cases

This text of 214 B.R. 35 (Florida Outdoor Equipment, Inc. v. Deresinski (In Re Deresinski)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Florida Outdoor Equipment, Inc. v. Deresinski (In Re Deresinski), 214 B.R. 35, 11 Fla. L. Weekly Fed. B 119, 38 Collier Bankr. Cas. 2d 1669, 1997 Bankr. LEXIS 1761, 31 Bankr. Ct. Dec. (CRR) 831, 1997 WL 688727 (Fla. 1997).

Opinion

FINDINGS OF FACT AND CONCLUSIONS OF LAW

GEORGE L. PROCTOR, Bankruptcy Judge.

This proceeding came before the Court upon Defendant’s Motion to Dismiss Complaint to Determine Dischargeability, for failure to make effective service pursuant to Federal Rule of Civil Procedure 4(m), made applicable by Federal Rule of Bankruptcy Procedure 7004(a). After considering the pleading, briefs and arguments made at the hearing held on October 1, 1997, the Court makes the following Findings of Fact and Conclusions of Law.

FINDINGS OF FACT

1. On November 25, 1996, James Edmund Deresinski (Defendant) and Beverley Ann Deresinski filed a voluntary joint petition for relief under Chapter 7 of the Bankruptcy Code. 11 U.S.C. §§ 101-1330 (1997).

2. On March 25, 1997, Florida Outdoor Equipment, Inc. (Plaintiff), filed a complaint to determine dischargeability. Plaintiff alleges that Defendant misappropriated $32,-735.92 from the sale of goods and merchandise subject to a security interest held by Plaintiff, in violation of 11 U.S.C. §§ 523(a)(4) and 523(a)(6). March 25, 1997, was also the bar date for filing complaints to determine dischargeability pursuant to Federal Rule of Bankruptcy Procedure 4007(c). Fed. R.BANKR.P. 4007(c) (1997).

3. The Clerk issued an alias summons and notice of pretrial conference on April 28, 1997. The summons and complaint were served on Defendant by first class mail on May 14,1997.

4. A pretrial conference was held on June 4, 1997, at which time Plaintiff’s counsel was informed that the attempted service was untimely. Plaintiff made no further attempts to serve Defendant.

5. On August 8, 1997, Defendant filed a motion to dismiss because service had not been effected within 120 days from the filing of the complaint, pursuant to Federal Rule of Civil Procedure 4(m), made applicable by Federal Rule of Bankruptcy Procedure 7004(a).

6. Plaintiff filed a response on August 25, 1997, admitting to the untimely service and requesting an additional ten days in which to secure and serve an alias summons.

7. The Court held a hearing on Defendant’s motion to dismiss on October 1, 1997. At the hearing, Plaintiff acknowledged that there was no good cause for its failure to timely serve Defendant. However, Plaintiff contends that in the absence of good cause, the Court has the discretion to grant Plaintiff additional time to effect proper service. Plaintiff maintains that such discretion is appropriate because the bar date for determining dischargeability has passed, and dismissal of the complaint would effectively be with prejudice, thereby precluding a determination of the complaint on the merits.

8. Defendant argues that discretionary relief should not be afforded because Plaintiff made no reasonable effort to serve the complaint within the 120 day time period.

CONCLUSIONS OF LAW

The Court will first address whether Federal Rule of Civil Procedure 4(m), made applicable by Federal Rule of Bankruptcy Procedure 7004(a), permits a court to extend the time for service of process, even in the absence of good cause. 1 Rule 4(m) provides:

*37 if service of the summons and complaint is not made upon a defendant within 120 days after the filing of the complaint, the court, upon motion or its own initiative after notice to the plaintiff, shall dismiss the action without prejudice as to that defendant or direct that service be effected within a specified time; provided that if the plaintiff shows good cause for the failure, the court shall extend the time for service for an appropriate period.

Fed.R.Civ.P. 4(m) (1997).

The Third Circuit was the first federal appellate court to consider whether Rule 4(m) grants courts the discretionary authority to extend the time for service, even in the absence of good cause. See Petrucelli v. Bohringer and Ratzinger, GMBH, et al., 46 F.3d 1298 (3d Cir.1995). In Petrucelli, the Third Circuit held “[w]e read the new rule to require a court to extend time if good cause is shown and to allow a court discretion to dismiss or extend time absent a showing of good cause.” Id. at 1305. The court relied primarily on the Advisory Committee’s explanation of Rule 4(m): “[t]he new subdivision explicitly provides that the court shall allow additional time, if there is good cause for the plaintiffs failure to effect service in the prescribed 120 days, and authorizes the court to relieve a plaintiff of the consequences of an application of this subdivision even if there is no good cause shown.” Fed.R.Civ.P. 4(m) advisory committee’s note (1993) (emphasis added).

Several circuits have followed the rationale of Petrucelli concluding that Rule 4(m) grants courts the discretionary authority to extend the time for service of process, even in the absence of good cause. See e.g., Pananas v. Liquid Carbonic Indus. Corp., 94 F.3d 338, 340 (7th Cir.1996) (holding that if good cause does not exist, the court has the discretion to either dismiss the action without prejudice, or direct that service be effected within a specified time); Thompson v. Brown, 91 F.3d 20, 21 (5th Cir.1996) (holding that the plain language of the rule broadens a court’s discretion to extend time for service, even if good cause has not been shown); Espinoza v. United States, 52 F.3d 838, 840-41 (10th Cir.1995) (holding that an extension of time in which to serve process may be granted, despite the absence of good cause).

After examining the case law, the plain language of Rule 4(m), and the Advisory Committee notes, the Court concludes that it has the discretionary authority to extend the time for service of process, even if no good cause is shown. Now the Court must determine whether it should exercise that discretion and grant Plaintiff additional time in which to secure and serve an alias summons.

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214 B.R. 35, 11 Fla. L. Weekly Fed. B 119, 38 Collier Bankr. Cas. 2d 1669, 1997 Bankr. LEXIS 1761, 31 Bankr. Ct. Dec. (CRR) 831, 1997 WL 688727, Counsel Stack Legal Research, https://law.counselstack.com/opinion/florida-outdoor-equipment-inc-v-deresinski-in-re-deresinski-flmb-1997.