Henkel v. McKissick (In Re Gosine)

454 B.R. 863, 2009 WL 8392404
CourtUnited States Bankruptcy Court, M.D. Florida
DecidedJune 18, 2009
DocketBankruptcy No. 6:08-bk-06010-ABB. Adversary No. 6:08-ap-00195-ABB
StatusPublished

This text of 454 B.R. 863 (Henkel v. McKissick (In Re Gosine)) 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
Henkel v. McKissick (In Re Gosine), 454 B.R. 863, 2009 WL 8392404 (Fla. 2009).

Opinion

MEMORANDUM OPINION AND ORDER

ARTHUR B. BRISKMAN, Bankruptcy Judge.

This matter came before the Court on the Complaint to Avoid and Recover Post-Petition Transfer and for Turnover of Property of the Estate (Doc. No. 1) filed by Marie E. Henkel, the Plaintiff and Chapter 7 Trustee herein (“Trustee”), seeking turnover of a motorcycle from Sor-aya McKissick, the pro se Defendant herein (“Defendant”).

A hearing was held on March 23, 2009 at which the Trustee, counsel for the Trustee, and the Defendant appeared. The Defendant, pursuant to the Court’s directive, submitted supplemental documentation post-hearing (Doc. Nos. 13,14). Judgment is due to be entered in favor of the Trustee and against the Defendant for the reasons set forth herein.

FINDINGS OF FACT

Gerald Gregory Gosine, the Debtor herein (“Debtor”), filed this case on July 16, 2008 (“Petition Date”). The Defendant and the Debtor live together at the Debt- or’s address of record of 913 Pondview Court, Celebration, Florida 34747 and were engaged at one time.

They own the Pondview Court property as joint tenants with right of survivorship and it is encumbered by a Mortgage held by SunTrust Mortgage, Inc., which the Debtor and Defendant jointly executed. 1 They jointly own a SunTrust Bank account, Account Number ******* *7738, titled “Gerald G. Gosine or Soraya McKissick” (“SunTrust Account”). 2

The Debtor, on the Petition Date, was named as the sole registered owner of a 1997 1350CC Harley Davidson motorcycle, YIN 1HD1FBR10VY608943 (“Motorcycle”), on the State of Florida Certificate of Title, Title Number 89142630, issued on June 20, 2005. 3 The Motorcycle is not encumbered by any liens. 4

The Debtor did not list the Motorcycle as an asset in Schedule B; he listed “None” for Question 25 regarding vehicles. 5 He did not claim the Motorcycle as exempt in Schedule C. 6 The Debtor set forth in Question 10 of his Statement of Financial Affairs (requiring disclosure of transfers of property made within two years of the Petition Date) he “sold motorcycle for $14k” to the Defendant on “7/20/07.” 7

*865 The Transfer of Title portion of the Motorcycle’s Certificate of Title is filled out in handwriting naming the Debtor as the “Seller” and the Defendant as “Purchaser” of the Motorcycle for a sales price of “14,-000.00.” 8 The odometer reading as of “7/20/07” is listed as 12,208 miles. 9 The Transfer of Title was purportedly executed by the Debtor and the Defendant on “7/20/07.” 10

The Debtor remained the registered owner of the Motorcycle on the Petition Date. The Transfer of Title was not recorded with the State of Florida until August 12, 2008 — approximately one month after the Petition Date. 11

The Trustee asserts the Motorcycle constituted non-exempt property of the Debt- or’s estate on the Petition Date and the transfer of title to the Defendant constitutes an unauthorized post-petition transfer. The Trustee seeks to avoid the transfer and recover the Motorcycle for the benefit of the estate through her strong-arm powers.

The Defendant asserts she had an interest in the Motorcycle on the Petition Date and such interest is not subject to avoidance. She presented two conflicting bases for her purported interest in the Motorcycle: (i) she purchased the Motorcycle from the Debtor for $14,100.00 prepetition; and (ii) she loaned the Debtor $14,100.00 and the Motorcycle is security for the loan. She explained the Debtor intended to transfer title to her prepetition, but she had forgotten to record the transfer until August 12, 2008.

The Defendant presented copies of a Bank of America cashier’s check, Check Number 5731097, made payable to the Debtor on July 20, 2007 and SunTrust Account statements. 12 She stated the Debtor had been experiencing financial difficulties, requested financial assistance, and the cashier’s check constituted funds from the liquidation of her 401 (k) retirement plan.

The cashier’s check was deposited into the SunTrust Account on July 20, 2007. 13 The deposited funds were fully expended. 14 The account records reflect the funds were used for the Defendant’s benefit through payment of the mortgage, credit card debts, and personal expenses. 15

The title transfer on August 12, 2008 was made while the Trustee was investigating the Motorcycle. The Defendant did not transfer the title until the Debtor had “informed [her] of the situation....” 16

The Defendant presented no documentation indicating she was granted a security interest in the Motorcycle. No liens are notated on the Certificate of Title.

Florida Statutory Law

The Motorcycle is a motor vehicle subject to the statutory registration and titling laws of the State of Florida. The registration and titling statutes are clear and unambiguous. The Debtor, as the named owner in the Certificate of Title, was the owner of the Motorcycle on the Petition Date pursuant to the plain meaning of the Florida registration and titling statutes. The Motorcycle constituted non *866 exempt property of the estate on the Petition Date.

Ownership of the Motorcycle was transferred to the Defendant on August 12, 2008 through registration of the Transfer of Title with the State of Florida. The recordation of the Transfer of Title constitutes a post-petition transfer of property of the estate. The Defendant is the initial transferee of the Motorcycle. The transfer was not authorized by the Bankruptcy Code or the Court.

No lien interest was notated on the Certificate of Title pursuant to the Florida motor vehicle lien recordation statute. Such lien recordation statute is clear and unambiguous. The Defendant does not have a lien interest in the Motorcycle pursuant to the plain meaning of the Florida lien recordation statute.

The Defendant had no judicially recognizable interest in the Motorcycle on the Petition Date. The Motorcycle constituted property of the estate on the Petition Date. The post-petition transfer of title on August 12, 2008 was not authorized by the Bankruptcy Code or the Court.

The transfer is avoidable. The Trustee is entitled to recover the Motorcycle from the Defendant. The Defendant is strictly liable to the Trustee for the return of the Motorcycle. The Motorcycle is free and clear of any claims.

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Related

Butner v. United States
440 U.S. 48 (Supreme Court, 1979)
In Re Coburn
250 B.R. 401 (M.D. Florida, 1999)
Lámar v. Wheels Unlimited, Inc.
513 So. 2d 135 (Supreme Court of Florida, 1987)
In Re Daugherty
261 B.R. 735 (M.D. Florida, 2000)

Cite This Page — Counsel Stack

Bluebook (online)
454 B.R. 863, 2009 WL 8392404, Counsel Stack Legal Research, https://law.counselstack.com/opinion/henkel-v-mckissick-in-re-gosine-flmb-2009.