Foss v. Hall County Child Support Office (In Re Foss)

328 B.R. 780, 54 Collier Bankr. Cas. 2d 41, 2005 Bankr. LEXIS 926, 2005 WL 1269367
CourtUnited States Bankruptcy Appellate Panel for the Eighth Circuit
DecidedMay 31, 2005
Docket05-6001 NE
StatusPublished
Cited by8 cases

This text of 328 B.R. 780 (Foss v. Hall County Child Support Office (In Re Foss)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Appellate Panel for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Foss v. Hall County Child Support Office (In Re Foss), 328 B.R. 780, 54 Collier Bankr. Cas. 2d 41, 2005 Bankr. LEXIS 926, 2005 WL 1269367 (bap8 2005).

Opinion

PER CURIAM.

Debtor, Mark Henry Foss, filed an adversary proceeding seeking a determination that his child support obligations were dischargeable. The bankruptcy court 1 granted a motion to dismiss, which had been filed by defendant, the Hall County Child Support Office (Hall County). Mr. Foss appeals that dismissal. We affirm.

FACTUAL BACKGROUND

Mr. Foss has been found to be the father of two children born of Paula Shultz. One child was born in 1991, and one child was born in 1999. The State of Nebraska *782 has provided support to the children in the form of Aid to Dependent Children and Medicaid. The State brought suit against Mr. Foss to determine paternity and to establish the amount of support Mr. Foss must pay. On March 4, 2003, the District Court Child Support Referee entered Findings and Recommendations modifying previously-awarded child support, finding Mr. Foss was the father of the child born in 1999, determining the amount of medical expenses still owed, and holding Mr. Foss in contempt. 2 Mr. Foss took exception to these findings, and the matter is now pending before the District Court of Hall County, Nebraska.

On July 2, 2004, Mr. Foss filed a Chapter 7 bankruptcy petition, and on September 13, 2004, he filed an adversary proceeding. In his adversary proceeding he alleged that the State of Nebraska’s child support guidelines fail to determine an economically-appropriate award, therefore, they violate federal law and the United States Constitution. He also alleged that awards made payable to child support enforcement agencies are dischargeable in bankruptcy. On September 30, 2004, Hall County filed a motion to dismiss. The county argued that Mr. Foss’ claims are barred by the Rooker-Feldman Doctrine, that Mr. Foss failed to name all proper party defendants, that Mr. Foss failed to state a cause of action for which relief could be granted in federal court, and that these claims are for child support, and are, therefore, nondischargeable. On November 19, 2004, the court held a hearing. On January 18, 2005, the court entered an order granting Hall County’s motion. Mr. Foss appeals that order.

STANDARD OF REVIEW

A bankruptcy appellate panel shall not set aside findings of fact unless clearly erroneous, giving due regard to the opportunity of the bankruptcy court to judge the credibility of the witnesses. 3 We review the legal conclusions of the bankruptcy court de novo. 4 In reviewing an order granting a motion to dismiss we must accept all well-plead facts as true and draw all reasonable inferences in favor of the appellant. 5 We review conclusions of law de novo. 6

DISCUSSION

As a preliminary matter, Hall County requested an extension of time in which to file its brief because the attorney who represented Hall County in the bankruptcy court had resigned. Such brief was due on April 5, 2005. The newly-assigned attorney, through an inter-office routing error, did not receive the appellant’s brief until March 31, 2005. Mr. Foss objected to Hall County’s request for an extension of time. We overrule that objection and will, therefore, consider Hall County’s brief, which was filed on April 20, 2005.

The bankruptcy court found that the Rooker-Feldman Doctrine prohibits lower federal courts from reviewing state court decisions. The Rooker-Feldman doctrine is a jurisdictional rule that applies to final judgments or orders, not to pending litigation in state courts. 7 While the *783 District Court Child Support Referee entered Findings and Recommendations, the District Court had not entered an Order as to those Findings and Recommendations prior to July 2, 2004, when Mr. Foss filed this bankruptcy petition. Therefore, it would appear that the Rooker-Feldman Doctrine would not apply. However, the bankruptcy court also found that this matter should be dismissed because there is currently pending in the District Court of Hall County, Nebraska litigation with regard to each and every concern raised by Mr. Foss in this adversary proceeding. We concur that abstention is appropriate and we affirm on that basis.

Congress confers jurisdiction on the district courts by virtue of 28 U.S.C. § 1334:

(a) Except as provided in subsection (b) of this section, the district courts shall have original and exclusive jurisdiction of all cases under title ll. 8

That jurisdiction is not, however, exclusive:

(b) Notwithstanding any Act of Congress that confers exclusive jurisdiction on a court or courts other than the district courts, the district courts shall have original but not exclusive jurisdiction of all civil proceedings arising under title 11, or arising in or related to cases under title ll. 9

The district courts are authorized to refer all civil proceedings arising under title 11, or arising in or related to cases under title 11, to the bankruptcy courts. 10 Congress, however, provided that the bankruptcy court, after the referral, could abstain from exercising its jurisdiction if either justice or comity required such abstention:

(c)(1) Nothing is this section prevents a district court in the interest of justice, or in the interest of comity with State courts or respect for State law, from abstaining from hearing a particular proceeding arising in or related to cases under title ll. 11

The issues presented here are either related to the bankruptcy case, or arise in the bankruptcy case. The bankruptcy court, therefore, had jurisdiction to decide the issues. But, the court, likewise, had discretion to abstain in the interest of comity with State courts or out of respect for state law. 12 “‘Congress wisely chose a broad jurisdictional grant and a broad abstention doctrine over a narrower jurisdictional grant so that the district court could determine in each individual case whether hearing it would promote or impair efficient and fair adjudication of bankruptcy cases.’ ” 13 Courts have established certain factors to provide guidance when considering abstention. 14 We have identified these factors to include the following:

(1) the effect or lack thereof on the efficient administration of the estate if a Court recommends abstention;
(2) the extent to which state law issues predominate over bankruptcy issues;

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Bluebook (online)
328 B.R. 780, 54 Collier Bankr. Cas. 2d 41, 2005 Bankr. LEXIS 926, 2005 WL 1269367, Counsel Stack Legal Research, https://law.counselstack.com/opinion/foss-v-hall-county-child-support-office-in-re-foss-bap8-2005.