Gonzalez v. Moffitt

Bankruptcy Appellate Panel of the Sixth Circuit·Decided September 20, 2000·No. 00-8016·Published

Opinion

(/(&7521,&&,7$7,21)('$SS3 WK&LU

)LOH1DPHES

%$1.5837&<$33(//$7(3$1(/2)7+(6,;7+&,5&8,7

,QUH &+$5/(6(02)),77

'HEWRU

BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 526('(/,$*21=$/(=

3ODLQWLII$SSHOOHH

Y

1R

&+$5/(6(02)),77

'HIHQGDQW$SSHOODQW

BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB $SSHDOIURPWKH8QLWHG6WDWHV%DQNUXSWF\&RXUW IRUWKH1RUWKHUQ'LVWULFWRI2KLR:HVWHUQ'LYLVLRQDW7ROHGR 1R$GY3URF

$UJXHGsXO\

'HFLGHGDQG)LOHG6HSWHPEHU

%HIRUH$8*%52:1DQG5+2'(6%DQNUXSWF\$SSHOODWH3DQHOsXGJHV

BBBBBBBBBBBBBBBBBBBB

&2816(/

$5*8('  :LOOLDP / 6ZRSH 5$1'< / 5((9(6 &2 /3$ )LQGOD\ 2KLR IRU $SSHOODQW/RXLV<RSSROR6+,1'/(51())+2/0(6 6&+/$*(7(57ROHGR2KLR IRU$SSHOOHH21%5,():LOOLDP/6ZRSH5$1'</5((9(6&2/3$)LQGOD\ 2KLR IRU $SSHOODQW  /RXLV <RSSROR 6+,1'/(5 1()) +2/0(6  6&+/$*(7(5 7ROHGR2KLRIRU$SSHOOHH

BBBBBBBBBBBBBBBBBBBB

23,1,21

BBBBBBBBBBBBBBBBBBBB

s9,1&(17$8*s5%DQNUXSWF\$SSHOODWH3DQHOsXGJH7KH%DQNUXSWF\&RXUW JDYH SUHFOXVLYH HIIHFW WR D 'LVWULFW &RXUW MXU\ YHUGLFW LQ IDYRU RI 3ODLQWLII 5RVH 'HOLD *RQ]DOH]LQWKHDPRXQWRIRQKHUFODLPWKDWWKH'HEWRULQWHQWLRQDOO\FDXVHGKHU VHULRXVHPRWLRQDOGLVWUHVVWKHUHIRUHILQGLQJWKDWWKHMXGJPHQWGHEWZDVQRQGLVFKDUJHDEOH XQGHU86&† D  :H$)),50

, ,668(6 21 $33($/

7KHILUVWLVVXHLVZKHWKHUWKH%DQNUXSWF\&RXUWFRUUHFWO\DSSOLHGWKHSULQFLSOHRI SUHFOXVLRQVSHFLILFDOO\FROODWHUDOHVWRSSHOWRWKH'LVWULFW&RXUWMXU\YHUGLFWUHODWLYHWRERWK WKHZLOOIXODQGPDOLFLRXVHOHPHQWVRI† D   7KHVHFRQGLVVXHLVZKHWKHUWKHUHLVVXIILFLHQWHYLGHQFHWRVXSSRUWWKHILQGLQJVWKDW WKH'HEWRUDFWHGZLOOIXOO\DQGPDOLFLRXVO\WRZDUGV*RQ]DOH]

,,s85,6',&7,21$1'67$1'$5'2)5(9,(:

7KH%DQNUXSWF\&RXUWjVRUGHUJUDQWLQJVXPPDU\MXGJPHQWLQIDYRURI*RQ]DOH]LQ WKHDGYHUVDU\SURFHHGLQJLVILQDODQGDSSHDODEOHE\ULJKWXQGHU86&† D   %HOIDQFHY%XVKH\ ,QUH%XVKH\ %5 %$3WK&LU  $QRUGHUJUDQWLQJVXPPDU\MXGJPHQWLVDFRQFOXVLRQRIODZDQGLVUHYLHZHGGH QRYR,G$SSOLFDELOLW\RIWKHSULQFLSOHRISUHFOXVLRQLVDOVRUHYLHZHGGHQRYR0DUNRZLW] Y&DPSEHOO ,QUH0DUNRZLW]

)G WK&LU 'HQRYRPHDQVWKDWWKH DSSHOODWHFRXUWGHWHUPLQHVWKHODZLQGHSHQGHQWO\RIWKHWULDOFRXUWjVGHWHUPLQDWLRQ,QUH %XVKH\%5DW FLWLQJ5D]DYLY&RPPjU)G WK&LU 



,,,)$&76

7KHIROORZLQJIDFWVDUHWDNHQIURPWKH8QLWHG6WDWHV&RXUWRI$SSHDOVIRUWKH6L[WK &LUFXLWDIILUPLQJWKH8QLWHG6WDWHV'LVWULFW&RXUWIRUWKH1RUWKHUQ'LVWULFWRI2KLRjV m'LVWULFW &RXUWl MXGJPHQWLQIDYRURI*RQ]DOH] >7KH'HEWRU@DQG*RQ]DOH]PDUULHGLQ>7KH'HEWRU@DGPLWVKH KDGDWOHDVWWKUHHH[WUDPDULWDODIIDLUVVSDQQLQJIURPWKHODWHVXQWLOWKHLU GLYRUFHLQ+HWHVWLILHGWKDWKHXVHGDFRQGRPGXULQJKLVLQWHUFRXUVH XQWLODSSUR[LPDWHO\$WWKLVWLPHKHVWRSSHGXVLQJDFRQGRPUHJXODUO\ GXULQJKLVDIIDLUZLWK/DXUD$[HZKRPKHODWHUPDUULHG'XULQJWKLVSHULRG >WKH'HEWRU@FRQWLQXHGWRHQJDJHLQVH[XDODFWLYLW\ZLWK*RQ]DOH]

7KURXJKRXW WKH ODVW \HDUV RI WKHLU PDUULDJH *RQ]DOH] UHSHDWHGO\ TXHVWLRQHG>WKH'HEWRU@DVWRZKHWKHUKHZDVKDYLQJDIIDLUVEXWKHDOZD\V GHQLHGKDYLQJDQ\DIIDLUV,Q0DUFK*RQ]DOH]QRWLFHGZDUWVLQ>WKH 'HEWRU@jVJHQLWDODUHD*RQ]DOH]TXHVWLRQHG>WKH'HEWRU@DERXWWKHJHQLWDO ZDUWVEXWKHFRQYLQFHGKHULWZDVPHUHO\DmZLQWHUUDVKl6DWLVILHGE\KLV DQVZHU*RQ]DOH]HQJDJHGLQXQSURWHFWHGVH[ZLWK>WKH'HEWRU@/DWHUWKDW \HDU>WKH'HEWRU@ILOHGIRUGLYRUFH

$IWHU*RQ]DOH]GLVFRYHUHG>WKH'HEWRU@jVQXPHURXVDIIDLUVVKHZHQW WR D GRFWRU WR GHWHUPLQH LI VKH VXIIHUHG IURP DQ\ VH[XDOO\ WUDQVPLWWHG GLVHDVHV7KHUHVXOWVVKRZHGWKDW*RQ]DOH]VXIIHUHGIURPKXPDQSDSLOORPD YLUXVRU+39FRPPRQO\UHIHUUHGWRDVJHQLWDOZDUWV$SHUVRQFDQRQO\ FRQWUDFW+39WKURXJKVH[XDOLQWHUFRXUVH*RQ]DOH]WHVWLILHGWKDWVKHQHYHU KDGVH[XDOLQWHUFRXUVHZLWKDQ\RQHH[FHSW>WKH'HEWRU@ *RQ]DOH]Y0RIILWW1R:/ WK&LU$SULO  ,Q)HEUXDU\*RQ]DOH]LQLWLDWHGDQDFWLRQDJDLQVWWKH'HEWRULQ'LVWULFW&RXUW *RQ]DOH]j'LVWULFW&RXUWFRPSODLQWLQFOXGHGDFRXQWVRXQGLQJLQLQWHQWLRQDODQGRUQHJOLJHQW LQIOLFWLRQRIHPRWLRQDOGLVWUHVV$WULDOFRPPHQFHGRQ$XJXVWDQGWKHMXU\UHWXUQHG D XQDQLPRXV YHUGLFW LQ IDYRU RI *RQ]DOH]  7KH MXU\ IRXQG WKDW *RQ]DOH] SURYHG E\ D SUHSRQGHUDQFHRIWKHHYLGHQFHWKDWWKH'HEWRUmLQWHQWLRQDOO\RUUHFNOHVVO\ ZLWKFRQVFLRXV GLVUHJDUG FDXVHGVHULRXVHPRWLRQDOGLVWUHVVlWR*RQ]DOH]DQGWKDWKHUSURYHQGDPDJHV WKHUHIRUZHUH7KH'HEWRUDSSHDOHGWKLVGHFLVLRQWRWKH6L[WK&LUFXLW

 7KH UHOHYDQW MXU\ LQWHUURJDWRU\ ZDV DV IROORZV

'R \RX ILQG WKDW WKH 3ODLQWLII KDV SURYHG E\ D SUHSRQGHUDQFH RI WKH HYLGHQFH WKDW 'HIHQGDQW LQWHQWLRQDOO\ RU UHFNOHVVO\ ZLWK FRQVFLRXV GLVUHJDUG

FDXVHG VHULRXV HPRWLRQDO GLVWUHVV WR 3ODLQWLII"

 7KH'HEWRUVXEVHTXHQWO\ILOHGKLV&KDSWHUEDQNUXSWF\SHWLWLRQLQWKH8QLWHG6WDWHV %DQNUXSWF\&RXUWIRUWKH1RUWKHUQ'LVWULFWRI2KLR %DQNUXSWF\&RXUW RQ6HSWHPEHU   *RQ]DOH] WKHUHDIWHU ILOHG KHU FRPSODLQW WR GHWHUPLQH GLVFKDUJHDELOLW\ XQGHU  86&† D   m%DQNUXSWF\$GYHUVDU\3URFHHGLQJl  2Q$SULOWKH6L[WK&LUFXLWHQWHUHGDSHUFXULDPRSLQLRQDIILUPLQJWKH'LVWULFW &RXUW6SHFLILFDOO\WKH6L[WK&LUFXLWDIILUPHGWKHDZDUGRIFRPSHQVDWRU\ GDPDJHV IRU WKH LQWHQWLRQDO LQIOLFWLRQ RI HPRWLRQDO GLVWUHVV  7KH 6L[WK &LUFXLW DOVR GHWHUPLQHGWKDWWKHYHUGLFWZDVQRWKLJKO\H[FHVVLYH7KH6L[WK&LUFXLWVWDWHG WKDWWKH'HEWRUjVFRQGXFWZDVmH[WUHPHDQGRXWUDJHRXVlDQGWKHUHIRUHWKHHYLGHQFHZDV mVXIILFLHQW WR VXSSRUW *RQ]DOH]j FODLP IRU UHFNOHVV RU LQWHQWLRQDO LQIOLFWLRQ RI HPRWLRQDO GLVWUHVVl  *RQ]DOH] Y 0RIILWW  :/  DW   7KH 6L[WK &LUFXLW IRXQG WKDW *RQ]DOH]FRXOGPDLQWDLQLQGHSHQGHQWFODLPVIRUERWKQHJOLJHQFHDQGDQLQWHQWLRQDOWRUW EDVHGRQWKHVDPHFRQGXFW/DVWO\WKH6L[WK&LUFXLWIRXQGQRSODLQHUURUZLWKUHJDUGWRWKH MXU\LQVWUXFWLRQV 7KH SDUWLHV WKHQ ILOHG FURVVPRWLRQV IRU VXPPDU\ MXGJPHQW LQ WKH %DQNUXSWF\ $GYHUVDU\3URFHHGLQJ*RQ]DOH]DVVHUWHGWKDWWKH'HEWRUZDVFROODWHUDOO\HVWRSSHGIURP GHQ\LQJWKHQRQGLVFKDUJHDELOLW\RIWKHMXGJPHQWXQGHU† D  *RQ]DOH] DOVRFRQWHQGHGWKDWWKHMXU\ILQGLQJVLQWKH'LVWULFW&RXUWDFWLRQZHUHVXIILFLHQWWRFRQVWLWXWH DZLOOIXODQGPDOLFLRXVDFWXQGHU† D   7KH%DQNUXSWF\&RXUWIRXQGWKDWWKH'LVWULFW&RXUWMXU\PDGHDVSHFLILFILQGLQJWKDW WKH'HEWRUDFWHGLQWHQWLRQDOO\DQGWKDWWKHILQGLQJVKRXOGEHJLYHQSUHFOXVLYHHIIHFW7KH %DQNUXSWF\&RXUWDOVRIRXQGWKDWWKH'LVWULFW&RXUWMXU\GHFLGHGWKDWWKH'HEWRUDFWHGDW DPLQLPXPZLWKFRQVFLRXVGLVUHJDUGLQFDXVLQJHPRWLRQDOGLVWUHVVWR*RQ]DOH]WKDWWKLV ZDVHTXLYDOHQWWRDILQGLQJRIPDOLFHDQGWKDWWKHILQGLQJVKRXOGEHJLYHQSUHFOXVLYHHIIHFW ,QDGGLWLRQWKH%DQNUXSWF\&RXUWIRXQGDVDPDWWHURIODZDQGEDVHGRQWKHHYLGHQFH EHIRUHLWWKDWWKH'HEWRUjVFRQGXFWZDVZLOOIXODQGPDOLFLRXVIRUSXUSRVHVRI† D  

,9',6&866,21

7KH'HEWRUDUJXHVWKDWWKH'LVWULFW&RXUWMXU\YHUGLFWVKRXOGQRWEHJLYHQSUHFOXVLYH HIIHFWEHFDXVHWKHLQWHUURJDWRULHVZHUHZULWWHQLQWKHGLVMXQFWLYH$VVXFKWKH'HEWRU FRQWHQGVWKHMXU\FRXOGKDYHIRXQGWKDWWKH'HEWRUjVFRQGXFWZDVQRWZLOOIXODQGZDV PHUHO\UHFNOHVV7KH'HEWRUIXUWKHUFRQWHQGVWKDWXQGHU.DZDDXKDXY*HLJHU86

Free access — add to your briefcase to read the full text and ask questions with AI

Gonzalez v. Moffitt, (bap6 2000).

Gonzalez v. Moffitt (Gonzalez v. Moffitt) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.