In Re Jeffrey

239 B.R. 859, 42 Collier Bankr. Cas. 2d 1395, 1999 Bankr. LEXIS 970, 1999 WL 826079
CourtUnited States Bankruptcy Court, N.D. New York
DecidedMay 12, 1999
Docket19-60141
StatusPublished

This text of 239 B.R. 859 (In Re Jeffrey) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, N.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 Jeffrey, 239 B.R. 859, 42 Collier Bankr. Cas. 2d 1395, 1999 Bankr. LEXIS 970, 1999 WL 826079 (N.Y. 1999).

Opinion

MEMORANDUM — DECISION AND ORDER

ROBERT E. LITTLEFIELD, Jr., Bankruptcy Judge.

Before the court is a Motion for Contempt and Damages filed by Jeffrey and Geneva Durant (“Debtors”) on July 30, 1998. The Debtors ask that the Jefferson County Department of Social Services (“JCDSS”) and Amy Farmer (“Farmer”), a caseworker at the JCDSS’s Child Support Enforcement Services, be held in civil contempt for violating a prior order of this court and the automatic stay provisions of 11 U.S.C. § 362. 1

JURISDICTION

The court has jurisdiction over the parties and the subject matter of this core proceeding under 28 U.S.C. §§ 1334(b), 157(b)(1), and 157(b)(2)(A).

FACTS

On August 28, 1987, Jeffrey Durant (“Durant”) obtained a Judgment of Divorce against Wendy Durant (now known as Wendy Boice) (“Boice”) from Hon. George G. Inglehart of the State of New York Supreme Court, County of Jefferson. Judge Inglehart ordered Durant to pay Boice thirty-five dollars per week as child support for each of the three children residing with her. Boice then filed a Petition for Enforcement of Child Support Payments against Durant on October 25, 1993. On August 23, 1994, James L. Gorman, Hearing Examiner, Jefferson County Family Court issued a decision whereby child support payments were to be made through the JCDSS’s Support Collection Unit from an income execution on Durant’s milk checks.

Debtors filed a Chapter 12 petition on November 5, 1996. Thereafter, JCDSS continued to levy on the Debtors’ milk checks. Debtors’ counsel then brought a contempt proceeding returnable March 27, 1997. On April 17, 1997, this court signed an order directing that all income levies and executions filed by JCDSS against the income of the Debtors shall cease effective March 27, 1997. According to Farmer’s affidavit, she was told by her supervisors to terminate the income execution on March 26, 1997.

On October 20, 1997, Durant filed a petition in Jefferson County Family Court for a downward modification of his child support obligations to Boice, which was denied by Robert Jenkins, Hearing Examiner, Jefferson County Family Court, on June 19, 1998. According to Durant’s affidavit, on July 24, 1998, Debtors received an income execution for child support arrears of $9,324.78. Debtors, however, claim that all post-petition support was current and that the pre-petition support claim was treated in the plan.

In her affidavit, counsel for the JCDSS and Farmer, Charu Narang, Esq. (“Nar-ang”), Assistant County Attorney for the County of Jefferson, states that she authorized Farmer to garnish the milk checks of the Debtors on June 25, 1998, for current support only because she believed that the Debtors’ Chapter 12 Plan had been confirmed and that it contained no provision for the payment of the child support. *862 (Narang Am.Aff. at 2, ¶ 7.) Farmer’s affidavit describes that on March 26,1997, she was first told to terminate the income execution on Debtor’s milk checks. (Farmers Aff. at 2, ¶ 7.) Then on April 21, 1998, she was again told to suspend the child support income executions.' (Farmer Aff. at 2, ¶ 9.) Further, on June 25, 1998, Farmer states that she was told by Narang that she could levy an income execution on Debtors, milk checks for current support. (Farmer Aff. at 2, ¶ 11.) This stayed in effect until July 30, 1998, when the execution was amended to garnish only for current support as the original execution inadvertently garnished for arrears. (Farmer Aff. at 2, ¶ 12.) Finally, Narang directed Farmer to suspend the execution entirely on August 10, 1998. (Farmer Aff. at 2, ¶ 13.)

Debtors’ motion alleges that the JCDSS and Farmer, individually, should be held in civil contempt for violating this court’s prior Order of April 17, 1997, and the automatic stay provisions of 11 U.S.C. § 362. The court held a hearing on the matter on September 10, 1998. At the conclusion of the hearing, the parties were asked to submit briefs in support of their positions on the motion for contempt.

ARGUMENT

In their opposition to the motion for contempt, JCDSS and Farmer explain their continuing levy on the Debtors’ milk checks, in alleged violation of a prior order of this court and the automatic stay. As an explanation, they contend that this court’s order lacked specificity and was therefore not effective. (Narang Am.Aff. at 4, ¶¶ 22, 23.) Further, they contend that despite an order of this court specifically requiring all income levies and executions by the JCDSS against the Debtors to cease, as well as the automatic stay provisions of § 362, 2 in order for the JCDSS Support Collection Unit to terminate these services, a modification petition must be filed by the Debtors in Jefferson County Family Court. (Narang Am.Aff. at 4, ¶¶ 25, 26.) The memoranda of law submitted by the JCDSS and Farmer contain only one defense which is that they are immune from any liability under the doctrine of sovereign immunity and the Eleventh Amendment.

Debtors argue: the Eleventh Amendment does not apply or if it does apply, it has been waived; the respondents should be held in contempt; damages should be awarded against them; and sanctions should be ordered in accordance with Fed.R.Bankr.P. 9011.

DISCUSSION

In their original memorandum of law, JCDSS and Farmer rely on Seminole Tribe of Florida v. Florida, 517 U.S. 44, 116 S.Ct. 1114, 134 L.Ed.2d 252 (1996), which stands for the proposition that each state is a sovereign entity which is not subject to suit by an individual without that state’s consent. In order for Seminole to apply it must first be shown that JCDSS and Farmer are each considered an “arm of the state” for Eleventh Amendment purposes. In their Supplemental Memorandum of Law, they cite to New York State Social Services Law (“SSL”) in an attempt to show that they warrant this type of treatment. SSL section 111-h governs the establishment of the County Support Collection Unit and states in relevant part:

1. Each social services district shall establish a support collection unit in accordance with regulations of the department to collect, account for and disburse funds paid pursuant to any order of *863 child support or child and spousal support issued under the provisions of section two hundred thirty six or two hundred forty of the domestic relations law, or article four, five, five-A or five-B of the family court act ...

N.Y. Social Services Law § 111-h (McKinney Supp.1998).

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Bluebook (online)
239 B.R. 859, 42 Collier Bankr. Cas. 2d 1395, 1999 Bankr. LEXIS 970, 1999 WL 826079, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-jeffrey-nynb-1999.