In Re Betts

165 B.R. 233, 1994 Bankr. LEXIS 272, 1994 WL 74377
CourtUnited States Bankruptcy Court, N.D. Illinois
DecidedJanuary 18, 1994
Docket16-29065
StatusPublished
Cited by14 cases

This text of 165 B.R. 233 (In Re Betts) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Betts, 165 B.R. 233, 1994 Bankr. LEXIS 272, 1994 WL 74377 (Ill. 1994).

Opinion

MEMORANDUM OPINION

JOHN H. SQUIRES, Bankruptcy Judge.

These matters come before the Court on the petition of John A. Betts (the “Debtor”) for a rule to show cause against Sharon Becker (“Becker”), William Surin (“Surin”), Kevin Mason (“Mason”), and the Honorable Stephen D. White (“Judge White”), requesting this Court to enter an order requiring them to show why they should not be held in contempt of this Court and for other relief. Becker, Surin and Mason have all filed responsive pleadings in opposition, and their own respective motions to strike and dismiss the Debtor’s petition. In addition, the Debt- or has filed a motion to disqualify the Court and Craig M. Armstrong (“Armstrong”) as attorney for Becker and Surin. For the reasons set forth herein, the Court hereby denies the Debtor’s petition and motions. The Court grants the motions of Becker and Mason and dismisses the petition. The Debtor is ordered to pay the $130.00 statutory fee for reopening this case pursuant to 28 U.S.C. § 1930(b), Appendix thereto, subsection (a).

I. JURISDICTION AND PROCEDURE

The Court has jurisdiction to entertain these matters pursuant to 28 U.S.C. § 1334 and local General Rule 2.33(A) of the United States District Court for the Northern District of Illinois. All matters are core proceedings under 28 U.S.C. § 157(b)(2)(A) and (O). 1

*236 II. FACTS AND BACKGROUND

Some of the relevant facts and background of this case are contained in earlier Opinions. Attorney Registration & Disciplinary Com. of Supreme Court v. Betts, 142 B.R. 819 (Bankr.N.D.Ill.1992); Attorney Registration & Disciplinary Com. of Supreme Court v. Betts, 143 B.R. 1016 (Bankr.N.D.Ill.1992); Attorney Registration & Disciplinary Com. of Supreme Court v. Betts, 149 B.R. 891 (Bankr.N.D.Ill.1993); and Attorney Registration & Disciplinary Com. of Supreme Court v. Betts, 157 B.R. 631 (Bankr.N.D.Ill.1993). In those Opinions the Court respectively denied the Debtor’s motion to dismiss an adversary complaint filed against him; denied the Debtor’s motion to disqualify the Court; granted summary judgment against the Debtor and found a debt non-dischargeable under 11 U.S.C. § 523(a)(7); and denied the Debtor’s post-trial motion to alter or amend the judgment.

On October 11, 1991, the Debtor, a practicing Illinois attorney, filed a pro se Chapter 7 case. The petition was accompanied with a list of creditors which did not include any of the parties respondent in the instant matters. The Debtor did not file requisite schedules of assets and liabilities, and the statement of affairs as required by Official Bankruptcy Forms 6 and 7. Those untimely papers were filed on February 12, 1992.

The Debtor’s filed schedules and statement of affairs listed no interest in real property, “$250.00 in cash on hand, and in one bank account”, and the Debtor’s wearing apparel. All were claimed exempt. The Debtor listed four creditors holding disputed claims for attorneys’ fees and costs, a funeral bill, and copying expenses which totalled $1,500.00. The Debtor’s statement of affairs listed three pending lawsuits, none of which involved Becker, Surin, Armstrong, Mason or Judge White.

On July 31, 1992, Becker, as the appointed personal representative of the probate estate of Glenn Serby (the “Serby estate”), requested relief from the automatic stay. Becker is represented by Surin and Armstrong. The Debtor opposed that motion. At the time of the preliminary hearing on that motion, the Court found the relief requested moot by reason of the July 17, 1992 order of discharge. The automatic stay had terminated pursuant to 11 U.S.C. § 362(c)(2)(C) upon the entry of the discharge order under 11 U.S.C. § 524. No appeal was taken from that determination. Thereafter, the bankruptcy case was closed on September 15, 1992. The related adversary proceeding was concluded in this Court in 1993.

Without reopening the bankruptcy case, the Debtor filed the instant petition on August 6, 1993, seeking a rule to show cause against Becker, Surin, Armstrong, Mason, and Judge White. In March, 1992, Becker, represented by Surin, petitioned the Circuit Court of the Thirteenth Judicial Circuit, La-Salle County, Illinois, for issuance of a citation to discover assets in the Serby estate against the Debtor. The citation required the Debtor to produce any property in his possession allegedly belonging to the Serby estate and to answer questions relating thereto. Mason was appointed special process server by the state court. He served the Debtor with the citation. The Debtor failed to appear at the hearing on the citation. Subsequently, a rule to show cause was entered against the Debtor by Judge White on April 14, 1992.

The gravamen of the Debtor’s instant petition is that the respondents’ individual and collective actions violated the automatic stay, and that all respondents should be held in contempt of this Court. In addition, the Debtor requests that his attorney’s fees and costs be taxed against them in an amount of at least $1,500.00. Also, he asks that Judge White should be ordered to dismiss the citation proceedings and, if he does not, additional relief be awarded. The Court notes that the Debtor waited over one year to file the petition at bar.

Becker, Surin, and Mason request the Court to dismiss the Debtor’s petition be *237 cause the citation was not to recover against the Debtor personally, but was only to recover property of the Serby estate. They maintain that the actions taken against the Debt- or were in order to recover property or information belonging to the Serby estate, and were not seeking to collect any pre-petition claim against the Debtor in person-am, or any of the property of the bankruptcy estate, or any of the Debtor’s individually owned property as scheduled by the Debtor. Becker and Surin further contend that they were not then advised that the Debtor had filed the instant Chapter 7 case. It was not until June 15, 1992, as the result of a supplemental motion filed in the state court to dismiss the probate proceedings against the Debtor, did they become aware of the pen-dency of this case. Thus, Becker and Surin claim that their actions in the Serby estate proceedings were taken without knowledge of the pendency of the bankruptcy ease and were not a willful violation of the automatic stay. In reply, the Debtor argues that what constitutes probate estate property could be more appropriately determined in this federal bankruptcy court.

Mason’s response notes, among other things, that he was appointed by order of the state court, and thus was acting under its authority.

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Bluebook (online)
165 B.R. 233, 1994 Bankr. LEXIS 272, 1994 WL 74377, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-betts-ilnb-1994.