In Re French

131 B.R. 138, 1991 Bankr. LEXIS 1219, 1991 WL 166187
CourtUnited States Bankruptcy Court, E.D. Missouri
DecidedAugust 19, 1991
Docket11-43468
StatusPublished
Cited by4 cases

This text of 131 B.R. 138 (In Re French) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, E.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re French, 131 B.R. 138, 1991 Bankr. LEXIS 1219, 1991 WL 166187 (Mo. 1991).

Opinion

MEMORANDUM OPINION AND ORDER

DAVID P. McDonald, Chief Judge.

JURISDICTION

This Court has jurisdiction over the parties and subject matter of this proceeding pursuant to 28 U.S.C. §§ 1334,151, and 157 and Local Rule 29 of the United States District Court for the Eastern District of Missouri. This is a “core proceeding” pursuant to 28 U.S.C. § 157(b)(2)(B), which the Court may hear and determine. FINDINGS OF FACT

Upon consideration of the record, briefs and argument of counsel, the Court makes the following findings of fact:

1. The Debtors, Kenneth Edward French and Karen Lee Behling French, (hereinafter “Debtors”) filed their voluntary Petition for Relief under Chapter 13 of the Bankruptcy Code (11 U.S.C. § 101, et seq.) on October 19,1989, which, inter alia, resulted in the stay of certain acts and proceedings against the Debtors and their properties as provided by 11 U.S.C. § 362. Debtors have remained in possession of the property of the estate.

2. Debtors, as lessees, executed a Consumer Lease with Movant, as lessor, on or about July 18,1989 (hereinafter “Lease I”), which provided for the leasing of a 1989 Honda Civic, serial number 2HGED645KH5331537. The monthly lease payment is $246.30. Lease I is in default.

3. Debtors, as lessees, executed a second Consumer Lease with Movant, as lessor, on or about August 3, 1989 (hereinafter “Lease II”), which provided for the leasing of a 1989 Honda Accord, serial number JHMCA5639KC097692. The monthly lease payment is $359.01. Lease II is in default.

4. On or about October 19, 1989, Debtors filed a Plan of Reorganization, which was confirmed on January 4, 1990 1 , without objection by Marine Midland. The Chapter 13 Plan proposed a monthly payment of $840.00 to the Trustee and also provided for the payment of arrearage on the lease prior to the payment of the Debtors’ attorney’s fees.

5. Debtors began making Plan payments pursuant to a wage order on November 18, 1989. Their first payment was not due until November 18, 1989. Debtors made the following Plan payments to the Trustee:

November 13, 1989 $420.00
December 8, 1989 840.00
January 11, 1990 840.00
February 12, 1990 840.00
March 12, 1990 840.00
April 10, 1990 840.00
May 11, 1990 840.00.

6.Movant filed Proofs of Claim with the Bankruptcy Court on December 15, 1989, which were identified as secured *140 claims and designated Claim Numbers 11 and 12. Movant did not provide the Trustee a copy of the proof of claim until February 20. The deadline to file a proof of Claim in this case was February 26.

7. On June 12, Debtors filed objections to the movant’s claims because they were filed as secured claims. On July 12, the Court sustained debtors’ objections to claims and thereby denied said claims. Movant was granted leave to file amended claims.

8. On or about June 1, Trustee stopped making payments to Movant in direct violation of the Order. However the Trustee asserts that he stopped payments as a result of the Court’s Order denying claims 11 and 12. Thereafter on October 1, movant filed claims numbers 24 and 25, as an unsecured non priority claims in the amounts of $11,583.49 and $16,884.50, as amendments to claims 12 and 11, respectively. It appears that the claims include both amounts due under the leases plus amounts representing prepetition arrearage.

9. On October 2, the movant’s attorneys Armstrong, Teasdale, Schlafly, Davis & Dicus filed claim number 26 as an administrative expense in the amount of $4,502.91. The claim is for arrearages, attorneys’ fees and costs incurred in connection the leases.

10. No one has filed any objections to claims numbers 24, 25 and 26.

11. Said Plan of Reorganization provides for the assumption of Lease I and Lease II and the immediate curing of all arrearage.

12. On January 11, Movant filed Motion A seeking to Compel Trustee to Make Payments Under the Chapter 13 Plan before the February 26 bar date.

13. Motion A was heard on February 8 and on February 20 the Court issued an Order granting Motion A, which further held: “... Trustee is hereby Ordered to commence payment to Movant within 10 days of the date of this Order including the curing of all arrearage as set forth in the Plan of Reorganization and any further payment of the Administrative Expense claim.”

14.The Trustee complied with the Court’s Order by making the following disbursements to Marine Midland:

February 28, 1990 $1,125.90
February 28, 1990 1,641.35
March 27, 1990 324.69
March 27, 1990 473.31
April 30, 1990 280.90
April 30, 1990 409.44

15. On February 20, Movant’s attorneys filed their Administrative Expense Claimant’s Request And Application For Payment, asserting that the Debtors are indebted to the movant pursuant to § 365(b)(1) of the Bankruptcy Code for ar-rearage, attorneys fees and interest, in the sum of $4,316.55.

16. On April 10, a hearing was conducted on Marine Midland’s Administrative Expense Claim. The parties orally stipulated to that portion of the Administrative Expense Claim relating to arrearages and narrowed the issue in dispute to the right of Marine Midland to recover attorneys’ fees resulting from its pursuit of arrearages under the leases. Marine Midland seeks reimbursement of attorneys’ fees and expenses in the amount of $1,290.00.

17. On April 19, Joseph Scapa, an unsecured creditor, filed his objection to the movant’s administrative expense claim for attorneys’ fees. Thereafter, on May 17, the Trustee filed his response objecting to movant’s administrative expense claim.

CONCLUSIONS OF LAW

The Debtors’ confirmed Chapter 13 Plan provides for the cure and subsequent assumption of two automobile leases entered into with Movant, Marine Midland. Section 365 of the Bankruptcy Code provides that an unexpired lease may not be assumed unless prepetition defaults have been cured or adequate assurance has been provided that such defaults will be cured promptly. 11 U.S.C. § 365(b)(1)(A).

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Bluebook (online)
131 B.R. 138, 1991 Bankr. LEXIS 1219, 1991 WL 166187, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-french-moeb-1991.