In re Borchers

17 Ohio Misc. 146, 46 Ohio Op. 2d 217, 1968 Ohio Misc. LEXIS 237
CourtDistrict Court, S.D. Ohio
DecidedDecember 20, 1968
DocketNo. 38556
StatusPublished
Cited by3 cases

This text of 17 Ohio Misc. 146 (In re Borchers) is published on Counsel Stack Legal Research, covering District 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
In re Borchers, 17 Ohio Misc. 146, 46 Ohio Op. 2d 217, 1968 Ohio Misc. LEXIS 237 (S.D. Ohio 1968).

Opinion

Nut,t,utter, Referee.

This cause came on for consideration, after due notice and hearing, upon a certain motion filed herein by counsel for the bankrupt on August 21,1968. The hearing was held September 24, 1968, at which time the trustee and his attorney, Larry E. Staats, appeared in [147]*147opposition, and Robert P. DiRosario, attorney for the bankrupt, appeared in support of the motion. Attorney Philip R. Bradley also appeared. At said hearing, Mr. DiRosario requested and was granted leave to amend his motion orally which amended motion was reduced to writing and filed the next day, September 25, 1968, along with a memorandum in support. On October 8, 1968, the trustee’s memorandum in opposition to the motion was filed by Mr. Staats. On October 25, 1968, Mr. DiRosario filed a reply memorandum and a second amended motion. The second amended motion is as follows :

“Now comes the bankrupt, Joseph T. Borehers, by his counsel and respectfully moves the court to instruct or order the trustee to abandon the personal injury claim in the first cause of action of the pending law suit in the Common Pleas Court of Franklin County, Ohio, being Case No. 228,612, to the bankrupt for the reason that such claim is not subject to the jurisdiction of the court and is the exclusive right of the bankrupt.”

Counsel have presented the matter as a question of law only. There seems to be no dispute as to facts, and thus no findings of fact are needed. The issue of law, however, is important not only to this bankrupt, his creditors and the trustee in this case, but important as well to parties in numerous other bankruptcy proceedings presently pending on the docket of this court. In addition, I am informed that the same issue arises often to plague trustees in bankruptcy and attorneys representing bankrupts, not to mention other referees in bankruptcy, and has caused extreme delay in the administration of a substantial number of pending bankruptcy cases throughout Ohio. The delay reflected by the record in this case is typical when the issue presented here arises. Perhaps this case will serve, as counsel have suggested, as an appropriate vehicle to obtain from one or more upper courts definitive rulings which will serve as guidelines in pending and future bankruptcy proceedings in Ohio involving the same issue. Therefore, it is deemed appropriate to set forth a recital of background in somewhat greater detail than would ordi[148]*148narily be necessary when factual background is not in dispute.

On or about June 10, 1965, Joseph T. Borchers while operating a 1965 Honda motorcycle was involved in a collision with a vehicle operated by one Frederick Royalty, suffering as a result bodily injuries, medical expense, loss of earnings and damage to his motorcycle. Thereafter, he retained attorney Philip R. Bradley to represent him in the matter. On August SO, 1965, Joseph Borchers and his wife, Claudietta, filed voluntary petitions in bankruptcy. Attorney Robert P. DiRosario is counsel of record and represents the Borchers in the bankruptcy proceedings. Mr. DiRosario and Mr. Bradley are associated in the practice of law under the name Bradley, Farris and DiRosario. In the schedules attached to Joseph Borchers’ petition there appears the following:

“Schedule B-3
Choses in Action
c. — Unliquidated claims of every nature, with the estimated value.
Possible claim for property damage as a result of collission (sic) between Honda motorcycle driven by petitioner and automobile driven by Frederick Royalty on June 10, 1965. No estimated value at this time.”

The schedules did not disclose any unliquidated claims for bodily injury, medical expense or loss of earnings. However, at the first meeting of creditors held on September 14,1965, the bankrupt, in response to questioning by the referee, disclosed such additional claims. It was also disclosed at that time that Mr. Bradley was actively engaged in representing Mr. Borchers on these claims, that offers of settlement had been made and rejected by Mr. Bradley, and that settlement negotiations were continuing. Only two creditors appeared at the first meeting, both being secured creditors. Creditors failed to elect a trustee at that time as might have been done under Section 44 of the [149]*149Bankruptcy Act. The court reserved ruling upon the question of the appointment of a trustee.

After further investigation and consideration, it was determined that the best interests of creditors and of the estate required the appointment of a trustee. On October 15, 1965, Robert E. Sexton was appointed trustee, and on the same date he qualified as such by posting bond in the amount of $2,000.00 duly approved by order of the court. On October 25,1965, Mr. Sexton filed his application seeking authority to employ as his attorney, Larry E. Staats, which application was granted, effective October 29, 1965.

On November 29, 1965, the trustee filed an Interim Report in which he stated that he had been “ * * * informed by attorneys for the bankrupts that an application or applications to dismiss these bankruptcies without prejudice may be filed within the near future.” No such motion was presented, and the trustee proceeded with routine matters of administration. On February 21,1966, the trustee filed his application seeking authority to employ as his special counsel Philip R. Bradley to prosecute the claims growing out of the motorcycle accident of June 10, 1965. On the same date an Order Appointing Special Counsel was entered. On April 19, 1966, a motion, without memorandum and giving no reasons, was filed by Mr. DiRosario on behalf of Joseph Borchers seeking dismissal of his bankruptcy proceeding without prejudice. No similar motion was filed on behalf of Mrs. Borchers. No hearing was requested upon the motion, and the same was later withdrawn by an order entered on February 1, 1967, approved by Mr. DiRosario and based upon his oral motion that the same be withdrawn.

On August 12, 1966, the trustee applied for and was granted authority to file suit in the Common Pleas Court of Franklin County, Ohio, upon the claims growing out of the motorcycle accident. Pursuant thereto a petition was prepared, signed “Philip R. Bradley, Attorney for Plaintiff,” and filed in the Common Pleas Court of Franklin County, Ohio, on November 5, 1966. The case is No. 228,612 on the docket of that court and is styled “Joseph T. [150]*150Borchers by Robert E. Sexton, Trustee, vs. Frederick Royalty.” The petition (a copy is attached to the trustee’s memorandum filed October 8, 1968) sets forth two causes of action. The first cause of action sets forth bodily injury, medical expenses of $859.89 and loss of earnings of $540.46. The second cause of action pleads property damage to the 1965 Honda motorcycle in the amount of $265.35. The prayer of the petition is for judgment of $26,500.00.

On March 16, 1967, the trustee filed an Interim Report with the court, disclosing that he had liquidated assets and collected funds resulting in proceeds to that date of $369.20 and $52.50 respectively in the estates of Joseph and Claudietta Borchers. Other than the disposition of some tangible assets of minimal value, there appeared to be nothing preventing the termination of administration of the estates except the pending action in Common Pleas Court.

On November 3, 1967, the trustee filed an Interim Report, disclosing that Mr.

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17 Ohio Misc. 146, 46 Ohio Op. 2d 217, 1968 Ohio Misc. LEXIS 237, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-borchers-ohsd-1968.