In re Haltermon

592 B.R. 311
CourtUnited States Bankruptcy Court, S.D. Ohio
DecidedFebruary 27, 2018
DocketCase No. 09-16243
StatusPublished
Cited by4 cases

This text of 592 B.R. 311 (In re Haltermon) is published on Counsel Stack Legal Research, covering United States Bankruptcy 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 Haltermon, 592 B.R. 311 (Ohio 2018).

Opinion

Jeffery P. Hopkins, United States Bankruptcy Judge

In September 2009, Debtors David Lee and Betsy Thurman Haltermon (the "Debtors" or referred to singularly as the "Debtor" when discussing Debtor David Haltermon) filed a Chapter 7 petition seeking protection from their creditors (Doc. 1). They obtained a discharge on January 12, 2010, which resulted in all prepetition debts owed to their creditors, whether they were scheduled or not, being discharged (Doc. 14). Years later, one of the creditors holding a prepetition unsecured claim against the Debtors, Dr. Lawrence Kurtzman ("Kurtzman"), filed a pro se action in state court seeking to collect on the debt. Debtors have filed the present Motion for Contempt (the "Motion for Contempt") (Doc. 19) seeking to enforce the discharge injunction and an order requiring Kurtzman to pay them monetary damages for having violated the discharge order. See 11 U.S.C. § 105(a) ; 11 U.S.C. § 524(a)(2), and 11 U.S.C. § 727. Complicating matters further, Debtors and Kurtzman had been in business together and co-debtors on certain business debt prior to the bankruptcy. After the bankruptcy, Debtors and Kurtzman continued to maintain a relationship and financial ties.

*314Kurtzman filed a Response (Doc. 23) denying that he violated § 524(a)(2). At first, Kurtzman claimed that he was unaware that the debt had been discharged in bankruptcy. In the alternative, Kurtzman asserted that he had been clueless about Debtors' bankruptcy altogether. Debtors filed a Reply challenging Kurtzman's asserted lack of knowledge about the bankruptcy or discharge of the debt (Doc. 26). The Court held an evidentiary hearing on May 9, 2017. After which, Debtors filed a Post-Hearing Brief (Doc. 34) and Kurtzman filed a Post-Hearing Memorandum (Doc. 33) and Response to the Post-Hearing Brief (Doc. 35).

JURISDICTION

The Court has jurisdiction over this action pursuant to 28 U.S.C. § 1334(b) and the Standing Order of Reference entered in this District. Pursuant to 28 U.S.C. § 157(b)(A) and (O), this is a core proceeding in which the Court possesses the authority to enter final judgment. This memorandum constitutes this Court's findings of fact and conclusions of law under Fed. R. Bankr. P. 7052.

FINDINGS OF FACTS

On September 24, 2009, Debtors filed a joint petition seeking relief from their creditors under Chapter 7. (Doc. 1). The petition stated that Mrs. Haltermon owed a creditor identified as Kurtzman on a debt of $10,000 for a personal loan. See Doc. 1, Schedule F. The purpose for the personal loan was not disclosed on the record. The Schedule also listed Kurtzman, and an individual named, Tome Kurtzman, presumably one of his relatives, and JJM Property Management, LLC, as co-debtors on a different obligation owed to McCormick 101, LLC. See Doc. 1, Schedule H. On January 12, 2010, Debtors received a discharge of all their prepetition obligations under 11 U.S.C. § 727 (the "Discharge Order"). (Doc. 14). On January 15, 2010, the Discharge Order was sent via first class mail to all creditors listed in the creditor matrix, including Kurtzman at his address located at 7439 E. Aracoma Drive, Cincinnati, Ohio 45237-2325. (Doc. 15).

On November 3, 2015, almost six years after the Discharge Order, Kurtzman's non-bankruptcy attorney, Matthew J. Hammer, an associate with the Deters Law Firm, who claims that he was unaware of Debtors' bankruptcy, emailed a letter to Debtor David Haltermon seeking to collect an "obligation on [an] agreement" on behalf of Kurtzman.1 See Doc. 19, Exhibit A. The letter provided Debtors with an ultimatum and reads as follows: "You have until next Monday to contact Dr. Kurtzman and make arrangements to resolve your obligation on your agreement. It is shameful what you have done. It is inexcusable you have ignored him. If you do not reach him to resolve, we not only sue you [sic], we publicly humiliate you [sic] by any means necessary, including social media/news. I don't bluff. Contact him. If not, so be it." (Emphasis in original). The letter did not provide any details regarding the nature of the obligation or the date the debt was incurred. Not surprisingly, *315the Debtors and Kurtzman never reached any resolution.

On January 14, 2016, Kurtzman filed a pro se complaint against Debtor David Haltermon in the Court of Common Pleas for Hamilton County (the "state court action"). Case No. A1600231. The complaint was filed just two months after Debtor received attorney Hammer's threatening email and letter. In the state court action, Kurtzman alleged that he had loaned Debtor $20,000 and that Debtor defaulted entirely on repayment. See Doc. 19, Exhibit B. Paragraph 6 of the state court complaint refers to a check Kurtzman purportedly wrote to Debtor evidencing the $20,000 loan. See Doc. 28-5. However, the state court complaint did not attach a copy of the check, nor did it disclose the date when the loan was made by Kurtzman or any of its terms or conditions.

On September 30, 2016, Debtor's attorney, who also represents him in the bankruptcy case, filed a notice of appearance in the state court action. (Doc. 30-4). In the answer to the state court complaint, Debtor's attorney asserted several affirmative defenses. See Doc. 19, Exhibit C. Debtor's tenth defense, in particular, states, "Kurtzman is barred from bringing this action by order of a court of competent jurisdiction." Id. None of the affirmative defenses contained specific language that the state court action was barred by the bankruptcy discharge.2 See Ohio R. Civ. P. 8(c).

Three months later, on January 24, 2017, the state court conducted a scheduling conference. See Docs. 30-6 and 32. Both attorneys appeared at the conference on behalf of their respective clients.3

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Bluebook (online)
592 B.R. 311, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-haltermon-ohsb-2018.