Hill v. Fidelity Financial Services (In Re Hill)

152 B.R. 204, 1993 Bankr. LEXIS 352, 24 Bankr. Ct. Dec. (CRR) 50, 1993 WL 82192
CourtUnited States Bankruptcy Court, S.D. Ohio
DecidedMarch 15, 1993
DocketBankruptcy No. 3-92-03130, Adv. No. 3-92-0322
StatusPublished
Cited by16 cases

This text of 152 B.R. 204 (Hill v. Fidelity Financial Services (In Re Hill)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hill v. Fidelity Financial Services (In Re Hill), 152 B.R. 204, 1993 Bankr. LEXIS 352, 24 Bankr. Ct. Dec. (CRR) 50, 1993 WL 82192 (Ohio 1993).

Opinion

DECISION ON ORDER DENYING PLAINTIFF’S MOTIONS FOR SUMMARY JUDGMENT AND GRANTING DEFENDANT’S MOTION FOR SUMMARY JUDGMENT

THOMAS F. WALDRON, Bankruptcy Judge.

This proceeding, which arises under 28 U.S.C. § 1334(b) in a case referred to this court by the Standing Order of Reference entered in this district on July 30, 1984, is determined to be a core proceeding pursuant to 28 U.S.C. § 157(b)(2)(F) — proceedings to determine, recover, or avoid preferences.

Pending before the court are motions for summary judgment (Doc. 12-1, 16-1) filed by the plaintiff, the debtor, James Lee Hill (the “Debtor”), 1 and a motion for summary judgment (Doc. 9-1) filed by the defendant, Fidelity Financial Services (“Fidelity”). The Debtor asserts that he is entitled to summary judgment pursuant to 11 U.S.C. § 547. Fidelity asserts, however, that it is entitled to summary judgment because a *205 debtor does not have standing to bring an action under § 547.

FACTS

1. On or about June 9, 1992, the Debtor purchased and obtained a 1992 Buick Park Avenue Ultra automobile from Reichard Buick Inc. (Doc. 15-1, para. 1).

2. On June 10, 1992, the Débtor borrowed money, $9,278.09, from Fidelity to pay the balance due on the purchase of the automobile to Reichard Buick Inc. (Doc. 15-1, para. 2).

3. The Debtor granted Fidelity a security interest in the automobile as security for the June 10, 1992, loan. (Doc. 15-1, para. 3).

4. On June 17,1992, a certificate of title was issued for the automobile. (Doc. 15-1, para. 4).

5. On June 30, 1992, Fidelity noted its lien upon the automobile’s certificate of title. (Doc. 15-1, para. 5).

6. On July 7, 1992, Debtor filed for relief under chapter 13 of the Bankruptcy Code.

7. Debtor initiated this adversary proceeding under 11 U.S.C. § 547(b).

8. Fidelity filed a Motion For Summary Judgment (Doc. 9-1). The defendant, George W. Ledford, chapter 13 trustee, filed Trustee’s Response To Motion For Summary Judgment (Doc. 10-1). The Debtor filed Plaintiff’s Response To Motion For Summary Judgment (Doc. 11-1), Plaintiff’s Motion For Summary Judgment (Doc. 12-1), and Affidavit Of James Lee Hill (Doc. 13 — l). 2

DISCUSSION

The issue in this proceeding is whether a chapter 13 debtor has standing to avoid a preference under 11 U.S.C. § 547. If a chapter 13 debtor does possess standing, this court must determine whether the Debtor is entitled to summary judgment.

Summary judgment is governed by Federal Rule of Bankruptcy Procedure 7056 which incorporates Rule 56 of the Federal Rules of Civil Procedure. Rule 7056(c), in relevant part, provides:

The judgment sought shall be rendered forthwith if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.

No genuine issues of material fact exist; therefore, this proceeding is appropriate for summary judgment.

In resolving this issue, the court commences with the methodology set forth by the Supreme Court for statutory interpretation. Although “canons of construction are no more than rules of thumb that help courts determine the meaning of legislation,” Connecticut Nat’l Bank v. Germain, — U.S.-,-, 112 S.Ct. 1146, 1149, 117 L.Ed.2d 391 (1992), the subject of an “appropriate analytical task” and an “agreed upon methodology” in statutory interpretation of the Bankruptcy Code has been continually emphasized in recent Supreme Court decisions. Patterson v. Shumate, — U.S.-,-n. 4 and-, 112 S.Ct. 2242, 2248 n. 4 and 2251, 119 L.Ed.2d 519 (1992).

Initially, examination commences with the language of the statute. Pennsylvania Dept. of Public Welfare v. Davenport, 495 U.S. 552, 557, 110 S.Ct. 2126, 2130, 109 L.Ed.2d 588 (1990) (“the fundamental canon [of] statutory interpretation begins with the language of the statute itself.”). “[C]ourts must presume that a legislature says in a statute what it means and means in a statute what it says there.” Germain, — U.S. at-, 112 S.Ct. at 1149. If the statutory language is ambiguous a court must resort to examination of legislative history. See United States v. Ron Pair Enterprises, Inc., 489 U.S. 235, 240-41, 109 S.Ct. 1026, 1030, 103 L.Ed.2d *206 290 (1989). As the Supreme Court stated in Ron Pair, “[t]he plain meaning of legislation should be conclusive, except in the ‘rare cases [in which] the literal application of a statute will produce a result demonstrably at odds with the intention of its drafters.’ ” 489 U.S. at 242, 109 S.Ct. at 1031. “In such cases, the intention of the drafters, rather than the strict language, controls.” Id.

Section 547, in relevant part, provides:

(b) Except as provided in subsection (c) of this section, the trustee may avoid any transfer of an interest of the debtor in property[.]

11 U.S.C. § 547 (emphasis added). The plain meaning of the language contained in § 547 provides that the trustee is the only party who has the authority to avoid a preference under § 547.

The language contained in other provisions of the Code further indicates that Congress did not intend for debtors to have authority to avoid preferences under § 547. Section 1303 expressly grants powers to a chapter 13 debtor which would otherwise be reserved for the trustee. Section 1303 provides:

Subject to any limitations on a trustee under this chapter, the debtor shall have, exclusive of the trustee, the rights and powers of a trustee under sections 363(b), 363(d), 363(e), 363(f), and 363(Z), of this title.

The plain meaning of Section 1303 does not provide a chapter 13 debtor with any avoidance powers. See e.g., In re Redditt, 146 B.R.

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Bluebook (online)
152 B.R. 204, 1993 Bankr. LEXIS 352, 24 Bankr. Ct. Dec. (CRR) 50, 1993 WL 82192, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hill-v-fidelity-financial-services-in-re-hill-ohsb-1993.