Goldstein v. Humway

191 N.E.2d 593, 92 Ohio Law. Abs. 65, 28 Ohio Op. 2d 368, 1963 Ohio Misc. LEXIS 225
CourtCuyahoga County Municipal Court
DecidedJune 26, 1963
DocketNo. 724
StatusPublished
Cited by2 cases

This text of 191 N.E.2d 593 (Goldstein v. Humway) is published on Counsel Stack Legal Research, covering Cuyahoga County Municipal Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Goldstein v. Humway, 191 N.E.2d 593, 92 Ohio Law. Abs. 65, 28 Ohio Op. 2d 368, 1963 Ohio Misc. LEXIS 225 (Ohio Super. Ct. 1963).

Opinion

Klein, J.

On October 22, 1956, the plaintiffs filed their Petition in the South Euclid Municipal Court. The Petition alleged that the defendant - - who was driving a vehicle in a northerly direction on Green Eoad while under the influence of intoxicants, suddenly and without warning and without due regard for the safety of other vehicles in the road, swerved the vehicle he was driving across the center line of the roadway and into the southbound lanes causing it to strike plaintiff Goldstein’s automobile in the left front — causing it to depreciate in the sum of $1,430.00.”

On May 29, 1957, the defendant filed a Motion to Stay Proceedings on the ground that the defendant had filed a voluntary petition in bankruptcy on April 19, 1957. Plaintiffs opposed the granting of this motion on the ground that the claim set forth in the petition was one for willful and malicious injury, and; therefore, not subject to discharge under the Bankruptcy Act. On July 6, 1957, defendant’s Motion to Stay was overruled by Judge Lawrence McGurk, who at that time was Judge of the South Euclid Municipal Court.

On November 2, 1957, defendant filed his Answer alleging therein that plaintiffs had been listed as creditors in the schedule filed by the defendant bankrupt in the United States District Court and that the defendant was discharged of said obligation on September 18, 1957.

On November 7, 1957, Plaintiffs filed a Eeply denying that the defendant had been discharged of the obligations set forth in the Petition and stating further that this claim is “---not one which is subject to a discharge under the Bankruptcy Act.”

On September 21,1962, this cause came on for trial. Neither the defendant nor his attorney of record appeared although said attorney of record was notified of the trial date by mail on or about August 31, 1962. Evidence was presented by Plaintiffs that the defendant was intoxicated (a South Euclid Police Officer testified that defendant was very drunk), and the Plain[67]*67tiff Goldstein testified that defendant crossed the center line and collided with his (Goldstein’s) vehicle.

On September 21, 1962, judgment was rendered for the Plaintiffs for $1,430.00 and costs. The Journal Entry read as follows:

Case called; plaintiffs in court; defendant not; trial had. Court finds for the plaintiffs and against the defendant in the sum of $1,430.00 and costs.

On December 27, 1962, a Motion for Permanent Stay of Execution was filed by the defendant on the ground that this claim was discharged by defendant’s bankruptcy. Plaintiffs objected to the granting of this Motion.

DECISION

The sole question before this Court is whether this Motion for a Permanent Stay should be granted.

It is an elementary rule of law that a discharge in bankruptcy must be pleaded and proved-, otherwise, the defense is waived and the resulting judgment is good. This principle is clearly stated as follows in 8 Bemington on Bankruptcy, Section 324°.

“A discharge in bankruptcy is a defense against liability only where properly pleaded and proved. It is a purely personal defense, therefore capable of waiver and considered as waived unless properly set up and insisted upon.
“The defense of discharged in bankruptcy can also be waived by consenting to adverse judgment after pleading it.” (Emphasis added.)

8B C. J. S. Bankruptcy, Section 586b, Page 149, states the rule as follows:

“For a discharge in bankruptcy to be available as a defense ---, not only must the bankrupt plead it, as stated supra Section 584a, but it is incumbent on him to prove it in the action.” (Emphasis added.)

In 6 Am. Jur., Bankruptcy, Sections 522, 524 and 525, this subject is discussed as follows:

Section 522. ‘ ‘ Generally — A discharge in bankruptcy must be pleaded and proved as a defense in an action by a creditor against the bankrupt upon a discharged debt; otherwise, the defense is waived and the resulting judgment is good.—

[68]*68“The plea of a discharge in bankruptcy is not an unconscionable or odious defense to an action to recover a debt; such a defense is not more technical or less favored by the courts than that of the statute of limitations.” (Emphasis added.)

Section 524. “Burden of Proof — The authorities are uniform that where a discharge in bankruptcy is pleaded as a defense to an action, and the plea is traversed, the burden is upon the defendant to prove his discharge.” (Emphasis added.)

Section 525. “Evidence — The authorities are not clear as to the proper manner of proving a discharge in bankruptcy. Under the earlier acts it was held that a discharge in bankruptcy might be proved by the certificate without an exemplification of the record. It is certain, however, that discharge may be proved by putting in evidence a certified copy of the order granting the discharge.”

To the same effect as the above are the following court decisions:

Gordon v. Davis, 173 A., 528 — In this case, the court stated as follows:

“To be effective as a defense in an action against him by a creditor whose debt was created prior to the filing of the bankruptcy petition, the discharge must, therefore, be both pleaded and proved by the bankrupt.” (Emphasis added.)

Tubbs et al v. McCabe, 165 A., 336—In this case, the court stated as follows:

“This is apparent from the fact that in order for it (bankrutpcy) to bar a subsequent action, it must be both pleaded and proved.” (Emphasis added.)

Fierce v. Fleming, 217 N. W., 806 (Supreme Court of Iowa). On Page 807 of its decision, the court stated as follows:

“---it is quite elemental that, in order for the appellants to avail themselves of the claimed satisfaction of the note by virtue of their discharge in bankruptcy, such fact must be pleaded cmd proved as a defense.” (Emphasis added.)

Bryan v. Orient Lumber & Coal, 156 P., 897 (Supreme Court of Oklahoma) — Syllabus 4 in this case states as follows:

“In order to successfully maintain the defense of discharge in bankruptcy from the claim sued upon, the fact of such dis[69]*69charge in bankruptcy must be pleaded and proved.” (Emphasis added.)

In the instant case, the defendant’s Answer pleaded a discharge; plaintiffs Reply denied that defendant had been discharged of the obligation set forth in the Petition and further stated that plaintiffs claim was “---not one which is subject to a discharge under the Bankruptcy act.” Since plaintiffs’ Reply contraverted the affirmative defense of bankruptcy set forth in defendant’s Answer, this put the defense of bankruptcy into issue. At the trial of this cause, the defendant failed to appear; therefore, no evidence of a discharge was offered in evidence. A general judgment was rendered for the plaintiffs.

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Bluebook (online)
191 N.E.2d 593, 92 Ohio Law. Abs. 65, 28 Ohio Op. 2d 368, 1963 Ohio Misc. LEXIS 225, Counsel Stack Legal Research, https://law.counselstack.com/opinion/goldstein-v-humway-ohmunictcuyahog-1963.