Gulamali v. Dinh (In re Dinh)

562 B.R. 122
CourtUnited States Bankruptcy Court, S.D. Texas
DecidedDecember 13, 2016
DocketCase No. 14-34123; Adversary No. 14-03320
StatusPublished
Cited by2 cases

This text of 562 B.R. 122 (Gulamali v. Dinh (In re Dinh)) 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
Gulamali v. Dinh (In re Dinh), 562 B.R. 122 (Tex. 2016).

Opinion

FINDINGS OF FACT AND CONCLUSIONS OF LAW REGARDING: (1) LETTER/MOTION OF DEFENDANTS TO RELEASE FUNDS, [ADV. DOC. NO. 50]; (2) RESPONSE OF PLAINTIFF TO DEFENDANTS’ LETTER/MOTION TO RELEASE FUNDS AND APPLICATION FOR PAYMENT OF FUNDS FROM COURT’S REGISTRY, [ADV. DOC. NO. 51]; AND (3) INTERVENORS, 3410 TOWNSHIP GROVE, LLC, AND KRISTINE PHAM’S MOTION TO INTERVENE AND APPLICATION FOR PAYMENT OF FUNDS FROM THE COURT’S REGISTRY [ADV. DOC. NO. 57] [This Order Relates to Adv. Doc. Nos. 50, 51, & 57]

Jeff Bohm, United States Bankruptcy Judge

I. Introduction

Ngo Xuan Dinh (“Mr. Dinh”) and Nina Nhathuy Dinh (“Ms. Dinh”) are the debtors in the main Chapter 7 case and the defendants in the above-referenced adversary proceeding. On August 22, 2016, Mr. Dinh and Ms. Dinh (collectively, the “Defendants”), now representing themselves pro se, filed a hand-written letter/motion regarding, among other issues, the release of certain funds on deposit in the registry of the Court (the “Motion to Release Funds”).1 [Adv. Doc. No. 50], Gulam Gula-mali, the plaintiff (the “Plaintiff’), filed a response to the Motion to Release Funds. [Adv. Doc. No. 51]. On November 10, 2016, this Court held a hearing on the Motion to Release Funds.

The pending dispute between the Plaintiff and the Defendants is this: How much of the proceeds from the sale of the Defendants’ homestead (which total $97,000.00 and are sitting in the registry of this Court) should be distributed to the Plaintiff? There is no question that the Plaintiff held a $16,932.72 lien on the homestead prior to its sale, and the Defendants do not dispute that the Plaintiff is entitled to a distribution in this amount. However, the Defendants assert that the Plaintiff is not entitled to a dime more. For his part, the Plaintiff, who holds a $50,000.00 non-dis-chargeable judgment against Mr. Dinh, takes the position that the proceeds are no longer exempt because more than six months has passed since the sale of the homestead; and that, therefore, the Plaintiff is entitled to a distribution not only of the $16,932.72 but also of the remaining balance owed under the judgment after application of the $16,932.72—i.e., $33,067.28.

Pursuant to Federal Bankruptcy Rules 9014 and 7052, this Court now issues the [124]*124following Findings of Fact and Conclusions of Law. To the extent that any Finding of Fact is construed to be a Conclusion of Law, it is adopted as such. To the extent that any Conclusion of Law is construed to be a Finding of Fact, it is adopted as such. The Court reserves the right to make any additional Findings and Conclusions as may be necessary or as requested by any party. For the reasons set forth herein, the Court finds that the Plaintiff is entitled to a distribution of only $16,932.72.

II. Findings of Fact

The findings of fact relevant to the Motion to Release Funds are as follows:

1. On October 29, 2015, this Court entered a judgment in the above-referenced adversary proceeding (the “Judgment”). [Adv. Doc. No. 29]. The Judgment set forth that the debt owed by Mr. Dinh to the Plaintiff in the amount of $50,000.00 is a non-dischargeable debt. [M]. The Judgment also ordered that “an equitable lien in the amount of $16,932.72 [be] attached to the townhome property commonly known as 3410 Township Grove Lane, Houston, Texas 77082 [(the “Townhome”) ].” [Id.]. The Townhome is the Defendants’ homestead, and they claimed this property as exempt in their Schedule C in their main case.' [Main Case No. 14-34123, Doc. Nos. 1 & 17]. Aside from granting the Plaintiff an equitable lien on the Townhome, the Judgment set forth that the Plaintiff is “entitled to pursue all actions necessary to foreclose his equitable lien on the [T]own-home under applicable Texas law.” [Adv. Doc. No. 29]. The Defendants did not appeal the Judgment.
2. On February 12, 2016, at the Plaintiffs request, the Clerk of Court issued an Abstract of Judgment for the benefit of the Plaintiff. [Adv. Doc. No. 31].
3. Also, on February 12, 2016, at the Plaintiffs request, the Clerk of Court issued a Writ of Execution to the U.S. Marshals Service commanding the Service to sell the Townhome for an amount sufficient to pay the Judgment in full and the cost of the writ. [Adv. Doc. No. 32].
4. On March 30, 2016, the U.S. Marshals Service levied on the Townhome. [Adv. Doc. No. 39].
5. On March 31 and April 2, 2016, the U.S. Marshals Service served process on the Defendants. [Adv. Doc. Nos. 37 & 38]. The documents completed and filed by the deputy U.S. Marshal who served process reflect that he personally traveled to the Townhome and met with Mr. Dinh on March 31, 2016 and Ms. Dinh on April 2, 2016 to serve the Writ of Execution on them, thereby giving them notice that the U.S. Marshals Service would be executing upon the Townhome.
6. On April 22, 2016, public notice was given setting forth that the U.S. Marshals Service, by virtue of the Writ of Execution, would hold a public auction to sell the Townhome on May 3, 2016 at 10:00 A.M. at the Bayou City Event Center, 9401 Knight Road, Houston, Texas 77045. [Adv. Doc. No. 40],
7. On May 3, 2016, the U.S. Marshals Service held a public auction to sell the Townhome. The highest bidder was Kristine Pham (“Ms. Pham”), who bid the cash sum of $97,000.00 for the Townhome (the “Sale Proceeds”). [Adv. Doc. No. 57].
8. On May 30, 2016, the Plaintiff filed his Application for Approval of Sale of Property and Issuance of Deed (the “Application to Sell”). [Adv. Doc. No. [125]*12543]. The Application to Sell requests this Court to enter an order that: (a) approves the sale of the Townhome to Ms. Pham; and (b) authorizes the U.S. Marshals Service to execute and deliver a deed for the Townhome to Ms. Pham. [M].
9. Also, on May 30, 2016, the Plaintiff filed his Motion to Deposit Monies Into the Registry of the Court (the “Motion to Deposit”). [Adv. Doc. No. 42]. The Motion to Deposit requested this Court to order that the Sale Proceeds being held by the U.S. Marshals Service be deposited into the registry of the Court and to remain on deposit until further order of this Court. [Id.].
10. On June 3, 2016, this Court granted the Application to Sell. [Adv. Doc. No. 46].
11. Also, on June 3, 2016, this Court granted the Motion to Deposit and entered an order entitled: “Order Allowing Deposit of Monies into thé Registry of the Court.” [Adv. Doc. No. 47].
12. On August 2, 2016, the U.S. Marshals Service, which had been holding the Sale Proceeds since receiving the payment from Ms! Pham, deposited the Sale Proceeds into the registry of the Court.
13. On August 22, 2016, the Defendants, representing themselves pro se, filed the Motion to Release Funds. [Adv. Doc. No. 60]. Among other things, the Defendants request that the funds from the sale of the Town-home, after payment of the mortgage, be released to them. [See id. at p. 2 of 2].
14. On September 12, 2016, the Plaintiff filed a pleading responding to the Motion to Release Funds and affirmatively applying for distribution of the funds to himself (the “Re-, sponse/Application”). [Adv. Doc. No. 61].

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Cite This Page — Counsel Stack

Bluebook (online)
562 B.R. 122, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gulamali-v-dinh-in-re-dinh-txsb-2016.