In Re Chavez

381 B.R. 582, 2008 Bankr. LEXIS 300, 2008 WL 361199
CourtUnited States Bankruptcy Court, E.D. New York
DecidedFebruary 11, 2008
Docket1-14-43557
StatusPublished
Cited by4 cases

This text of 381 B.R. 582 (In Re Chavez) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Chavez, 381 B.R. 582, 2008 Bankr. LEXIS 300, 2008 WL 361199 (N.Y. 2008).

Opinion

DECISION

CARLA E. CRAIG, Chief Judge.

This matter comes before the Court on the motion (“Motion”) of the debtor, Marco Antonio Chavez (the “debtor” or “Mr. Chavez”) to estimate proof of claim No. 6 under 11 U.S.C. § 502(c) at one dollar, representing nominal damages to pro se claimant Carla Duncan (the “claimant” or “Ms. Duncan”). For the reasons set forth below, Ms. Duncan’s claim, which arose from her wrongful eviction by the debtor *585 from her apartment, is estimated at $28,916.04 representing compensatory and punitive damages, including $4,416.04, representing prejudgment interest at the rate of 9% per annum provided by C.P.L.R. §§ 5001(b).

Jurisdiction

This Court has jurisdiction over this matter under 28 U.S.C. §§ 1384(b) and the Eastern District of New York standing order of reference dated August 28, 1986. The estimation process under 11 U.S.C. § 502(c) is a core proceeding under 28 U.S.C. § 157(b)(2)(B). See In re Chateaugay Corp., III B.R. 67, 72 (Bankr.S.D.N.Y.1990). This decision constitutes the Court’s findings of fact and conclusions of law to the extent required by Fed. R. Bank. P. 7052.

Factual Background

The following is a summary of portions of the relevant testimony given by the claimant at a two-day evidentiary hearing: 1

In December 2003, the debtor rented Ms. Duncan a basement apartment (the “Apartment”) in a building he owned located at 2093 Dean Street, Brooklyn, New York, for $1,400 per month, and during the relevant period she paid the rent each month in cash. (Tr. 2, 118:23-24.) Ms. Duncan resided in the Apartment with her boyfriend and her minor daughter.

In March 2004, Ms. Duncan notified the debtor that her stove was not working and asked the debtor to fix it. (Tr. 2, 131:13-14.) In response, the debtor left a note in the Apartment saying that he “came by to fix [the] stove,” but could not get it to work, and that he would contact a mechanic to repair it. (Tr. 1, 53:3-5; Tr. 2, 131:15-16.) At the end of April, the stove had not been repaired, so Ms. Duncan informed the debtor that she was going to call 311 to attempt to arrange to have the stove fixed. (Tr. 2, 132:2-4.) Ms. Duncan testified that she and the debtor were subsequently notified that the City was investigating whether Mr. Chavez was renting Ms. Duncan an illegal basement apartment. 2 (Tr. 2, 135:2; 13-14.) On May 5, 2004, the debtor entered the Apartment and demanded that Ms. Duncan leave, and an argument ensued. (Tr. 2, 143:19-22.) The debtor then, according to Ms. Duncan, locked himself in the Apartment’s bathroom and flushed an entire roll of toilet paper down the toilet. (Tr. 2, at 146:17-20.)

On May 8, 2004, the Apartment flooded, except for the kitchen, the bathroom, and the master bedroom. (Tr. 2, 150:13-14.) Ms. Duncan contends that the debtor caused the flood by clogging the plumbing system in order to force her to vacate when he learned of the investigation of the illegal occupancy of a basement apartment at the premises. (Tr. 1, 138:17-19; Tr. 2, 135:12-15; 146:9-20; 147:9-10; 161:6-8.) With the help of neighbors, Ms. Duncan loaded as many of her belongings as she could from the flooded Apartment into garbage bags, and contacted Rent-A-Center, from which she had rented the furni *586 ture in the Apartment, notifying them of the flood and requesting that they remove the furniture. (Tr. 2, 148:12-14; 157:19— 21; 158:1-6.) Though she was able to remove some of her personal property, Ms. Duncan testified that she left much of her property in the Apartment, including, among other things, clothing, toys, food, a laptop, kitchen appliances, and $5,000 in cash she kept hidden in a locked closet. (Tr. 2, 166:15-17; 167:15; 168:3-5.) After the flood, Ms. Duncan and her daughter stayed for several days with a neighbor, because the Apartment was uninhabitable. (Tr. 2,155:22-24; 157:1-10.)

On May 11, Ms. Duncan returned to the Apartment and discovered that the debtor had nailed shut the door to the Apartment. (Tr. 2, 154:2-5; 155:6-9; 158:11-12.) On May 12, Ms. Duncan obtained an order restoring her to possession of the Apartment from the New York County Civil Court, in which Judge Dawn M. Jimenez awarded Ms. Duncan a final judgment of possession (“Order of Possession”) based on testimony she provided that established an illegal lock-out by Mr. Chavez. (Order, May 12, 2004). Judge Jimenez sent an officer of the court (“Officer Boyette”) to the Apartment to ensure the Order of Possession was complied with. (Tr. 2, 152:19-22) Upon entering the Apartment with Officer Boyette, Ms. Duncan found her belongings strewn about, mixed with trash in standing water. (Tr. 2, 14:6-7.) The kitchen cabinets were broken and partially removed, and the refrigerator was gone, later to be discovered in the shed with other kitchen appliances and the toilet. (Tr. 2, 14:5-6; 38:1-3; 166:24-25.) “My whole house was destroyed; food, clothes, toys, our dishes, you name it, pots, pans, everything [was] destroyed.” (Tr. 2, 166:15-20.) Ms. Duncan testified that her property that remained in the Apartment was removed by the debtor, and that she never recovered it. Ms. Duncan testified that she has suffered emotionally as a result of the debtor’s actions and losing her possessions and home, and that she has been diagnosed with bi-polar disorder which was exacerbated by these events. (Tr. 2,196:8-12; 202:13-17.)

Procedural Background

On May 13, 2004, Ms. Duncan commenced a pre-petition action against the debtor in the New York City Civil Court, Kings County (the “Civil Court Action”), for damages sustained as a result of the alleged unlawful eviction. (Motion, 1.) On May 9, 2006, Mr. Chavez filed a voluntary petition under Chapter 13 of the U.S. Bankruptcy Code, thereby staying the Civil Court Action under § 362(a) of the Bankruptcy Code. (Id. at 1.) Ms. Duncan timely filed a proof of claim on June 15, 2006 (the “Claim”) in the amount of $228,000, representing her claimed damages in the Civil Court Action. (Proof of Claim No. 6.) The debtor filed an objection to the Claim (“Objection”), requesting that the Claim be expunged. (Objection, 1.) Based on the record established at the October 18, 2006 hearing on the Objection, the Court denied the Objection and modified the automatic stay to permit the Civil Court Action to proceed to judgment, but not execution. (Order Lifting Stay, Oct. 27, 2006.) By decision and order dated April 19, 2007, Judge Kenneth B. Sherman directed that the case be transferred to the Supreme Court of New York on grounds that it exceeded the monetary jurisdictional limit of the Civil Court. By motion dated August 9, 2007, the debtor requested that the Bankruptcy Court estimate the Claim in order to avoid further delay in seeking confirmation of his Chapter 13 plan. (Motion, 1.) The Court granted the debtor’s motion. (Order dated October 12, 2007.) An evidentiary hearing to estimate Ms.

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Cite This Page — Counsel Stack

Bluebook (online)
381 B.R. 582, 2008 Bankr. LEXIS 300, 2008 WL 361199, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-chavez-nyeb-2008.