In Re Foster

283 B.R. 917, 2002 Bankr. LEXIS 1094, 2002 WL 31234989
CourtUnited States Bankruptcy Court, E.D. Wisconsin
DecidedSeptember 4, 2002
Docket16-25959
StatusPublished
Cited by5 cases

This text of 283 B.R. 917 (In Re Foster) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Foster, 283 B.R. 917, 2002 Bankr. LEXIS 1094, 2002 WL 31234989 (Wis. 2002).

Opinion

DECISION

JAMES E. SHAPIRO, Bankruptcy Judge.

The debtor, Leroy L. Foster, has filed a motion for a new evidentiary hearing to *918 reconsider this court’s order dated July 16, 2002 granting relief from the automatic stay to the City of Milwaukee (“City”).

Upon a full consideration of the motions, briefs, and supporting affidavits of the debtor and City, the court DENIES debt- or’s motion for reconsideration.

In order to place this matter in its proper perspective, the following chronological history of the debtor’s bankruptcies over the past 19 years is provided:

Case Number Date of Filing Type of Case Judge Debtor’s Atty Disposition

83-21258 April 7,1983 Chapter 7 Ihlenfeldt John Savage Discharge 07/18/83

84-24680 Nov. 9,1984 Chapter 7 Ihlenfeldt Michael Hayes Dismissed 11/02/87

87-25005 Nov. 12,1987 Chapter 13 Eisenberg Michael Hayes Dismissed 03/19/90

90-25518 Oct. 16,1990 Chapter 13 Clevert Michael Hayes Dismissed 07/16/91

91-25290 August 9,1991 Chapter 13 Clevert Jeffrey Reitz Dismissed 06/16/93

93-23767 June 30,1993 Chapter 13 Eisenberg Clifton Owens Discharge * 10/11/95

95-27444 Nov. 20,1995 Chapter 13 Eisenberg Pro se Dismissed 09/24/96 with prohibition against filing another ch. 13 for 180 days

97-23665 April 18,1997 Chapter 13 McGarity Clifton Owens Voluntary dismissal 07/16/01

01-28465 July 20,2001 Chapter 7 Shapiro Clifton Owens Discharge 10/31/01

02-23351 March 22, 2002 Chapter 13 Shapiro Susan Kinzer Pending

On June 25, 2002, an evidentiary hearing was held on the motion of the City for relief from the automatic stay in connection with certain property located at 2377-79 North Holton Street, Milwaukee, Wisconsin. This property owned by the debt- or consists of a tavern and jazz club known as the “Jazz Oasis” and also is his residence. At the conclusion of this hearing, the court granted the City’s motion for relief from stay. The order for relief from stay included annulment of the stay for the purpose of validating the City’s judgment in its in rem foreclosure action in Milwaukee County circuit court, entered on Monday, March 25, 2002. Entry of this foreclosure judgment occurred shortly after the debtor filed this chapter 13 case on the previous Friday, March 22, 2002. The City first learned of such fifing after it already had entered this foreclosure judgment.

The debtor, in his motion for reconsideration, claims that material misrepresentations were made at the evidentiary hearing by both Jerome Gellert, Supervising Assessor for the City, and Assistant *919 City Attorney, Beverly A. Temple. The debtor asserts that Mr. Gellert falsely testified as to why the property is on the so-called “environmental hold” list (sometimes also referred to as the “do not acquire” list). The debtor further claims that Assistant City Attorney Temple’s statements that the debtor’s repeated bankruptcy filings frustrated the City’s efforts to obtain this property for many years were also false. In support of this latter charge against Assistant City Attorney Temple, the debtor states that the City never attempted to obtain relief from the automatic stay in any of the debtor’s previous bankruptcies.

The debtor is incorrect in his assertion that the City made no previous attempts to obtain this property through bringing a motion for relief from stay. In Case No. 93-23767, a hearing was held on June 6, 1995 before The Honorable Russell A. Ei-senberg on a motion for relief from the automatic stay brought by the City. Judge Eisenberg denied the City’s motion for relief from stay but directed that the debt- or make certain payments to the City as adequate protection. In his court minutes, Judge Eisenberg stated that: “The City has not received a penny towards payment of real estate taxes since 1976 — more or less.”

Regardless of whether Mr. Gellert made any false statements regarding the “environmental hold” list or whether Assistant City Attorney Temple made false statements regarding the City’s efforts to acquire this property, such statements, if made, were immaterial and had no bearing on this court’s decision. What the court found compelling was the debtor’s past pattern of repeated bankruptcy filings, debtor’s broken promises to make payments on past due real estate taxes, and the increasing arrearage of the debtor’s long-overdue real estate taxes. In the debtor s first bankruptcy case in 1983 (No. 83-21258), the outstanding real estate taxes due to the City totalled $10,211.43. That sum has now escalated to more than $115,000. As a result of these findings, the court found this case was filed in bad faith and that there was cause for relief from the automatic stay pursuant to 11 U.S.C. § 362(d)(1).

A lack of good faith in the filing of a bankruptcy petition constitutes “cause” for relief from the automatic stay within the meaning of 11 U.S.C. § 362(d)(1). In re Laguna Associates L.P., 30 F.3d 734, 737 (6th Cir.1994); Carolin Corp. v. Miller, 886 F.2d 693, 699 (4th Cir.1989); In re Little Creek Development Co., 779 F.2d 1068, 1071-72 (5th Cir.1986); In re Dixie Broadcasting, Inc., 871 F.2d 1023 (11th Cir.1989). This court concluded that it was time to end the debtor’s pattern of repeated bankruptcy filings. Even Judge Eisenberg, in granting the motion of the chapter 13 trustee to dismiss Case No. 95-27444 on September 24, 1996, commented that “enough is enough.”

The court agrees with the debtor that successive filings by a debtor are not per se prohibited, as was made clear in the holding of the United States Supreme Court in Johnson v. Home State Bank, 501 U.S. 78, 87, 111 S.Ct. 2150, 115 L.Ed.2d 66 (1991). The Supreme Court stated that Congress did not prohibit multiple filings per se and did not intend categorically to foreclose a chapter 13 filing to a debtor who previously filed for chapter 7 relief. However, the facts in Johnson are far different from the case at bar. In Johnson, the debtor in a chapter 7 case discharged the unsecured portion of his real estate mortgage and then, in order to avoid mortgage foreclosure, filed a chapter 13 case for the purpose of dealing with the remaining arrearage on the secured portion of the mortgage in his chapter 13 plan. *920 These facts differ from what is now before this court. In In re Fallon, 244 B.R.

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Cite This Page — Counsel Stack

Bluebook (online)
283 B.R. 917, 2002 Bankr. LEXIS 1094, 2002 WL 31234989, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-foster-wieb-2002.