In re: Joseph M. Gately

CourtUnited States Bankruptcy Appellate Panel for the Ninth Circuit
DecidedNovember 15, 2016
DocketCC-16-1086-TaFMc
StatusUnpublished

This text of In re: Joseph M. Gately (In re: Joseph M. Gately) is published on Counsel Stack Legal Research, covering United States Bankruptcy Appellate Panel for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re: Joseph M. Gately, (bap9 2016).

Opinion

FILED NOV 15 2016 1 NOT FOR PUBLICATION 2 SUSAN M. SPRAUL, CLERK U.S. BKCY. APP. PANEL OF THE NINTH CIRCUIT 3 UNITED STATES BANKRUPTCY APPELLATE PANEL 4 OF THE NINTH CIRCUIT 5 In re: ) BAP No. CC-16-1086-TaFMc ) 6 JOSEPH M. GATELY, ) Bk. No. 9:11-bk-12041-PC ) 7 Debtor. ) ______________________________) 8 ) JOSEPH M. GATELY, ) 9 ) Appellant, ) 10 ) v. ) MEMORANDUM* 11 ) BRIAN MOORE; ELIZABETH F. ) 12 ROJAS, Chapter 13 Trustee; ) JONI JENEA GATELY, ) 13 ) Appellees.** ) 14 ______________________________) 15 Submitted Without Oral Argument*** on October 21, 2016 16 Filed – November 15, 2016 17 Appeal from the United States Bankruptcy Court 18 for the Central District of California 19 Honorable Peter H. Carroll, Bankruptcy Judge, Presiding 20 21 * This disposition is not appropriate for publication. 22 Although it may be cited for whatever persuasive value it may have (see Fed. R. App. P. 32.1), it has no precedential value. 23 See 9th Cir. BAP Rule 8024-1(c)(2). 24 ** Neither Brian Moore nor Elizabeth Rojas filed a brief on 25 appeal. As a result, they waived the opportunity to appear in this case. 26 *** 27 The Panel unanimously determined that the appeal was suitable for submission on the briefs and record pursuant to 28 Rule 8019(b)(3). 1 2 Appearances: Appellant Joseph M. Gately, pro se, on brief; appellee Joni Gately, pro se, on brief. 3 4 Before: TAYLOR, FARIS, and MCKITTRICK,**** Bankruptcy Judges. 5 6 INTRODUCTION 7 Chapter 131 debtor Joseph Gately appeals from an order 8 denying his motion to avoid a judicial lien under § 522(f)(1). 9 We AFFIRM. 10 FACTS 11 Prior to the bankruptcy filing, the Debtor and Joni Gately 12 were married for nearly two years. The Debtor eventually sought 13 marital dissolution in the Family Law Division of the Superior 14 Court of California for the County of Ventura. 15 Following a trial regarding Joni’s2 assertion of spousal 16 support arrearages and the Debtor’s request for modification of 17 his interim support obligations, the family court issued its 18 Ruling on Submitted Matter (the “Ruling”). The Ruling’s second 19 paragraph contained an express acknowledgment of Joni’s then 20 pending bankruptcy case and the fact that: “[t]he parties [had] 21 agreed that the trial could proceed on the issue of status and 22 **** 23 The Honorable Peter C. McKittrick, United States Bankruptcy Judge for the District of Oregon, sitting by 24 designation. 25 1 Unless otherwise indicated, all chapter and section references are to the Bankruptcy Code, 11 U.S.C. §§ 101-1532. 26 2 27 Because Joni Gately retained the surname “Gately,” we, for the sake of clarity, refer to her by first name in this 28 bench memorandum. No disrespect is intended.

2 1 spousal support, but not on any other matters.” Bk. Dkt. 2 No. 130 at p. 10. The family court then awarded Joni support 3 arrearages, established the duration of the Debtor’s support 4 obligation, and reduced the amount of Debtor’s monthly support 5 obligation at the halfway point. The Ruling’s concluding 6 paragraphs included an acknowledgment that: “[a]s a result of 7 [Joni’s] pending bankruptcy, there are certain issues which the 8 family court cannot address.” Id. at p. 15. 9 As relevant to this appeal, the Ruling also awarded 10 attorney’s fees and costs to Joni and required payment of 11 $3,500 directly to Joni’s divorce attorney, Brian Moore. The 12 Ruling acknowledged that, when considering a fee award, the 13 family court was required by California Family Code § 2032 to 14 determine what was just and reasonable given the relative 15 circumstances of the parties. It then outlined the information 16 relied upon to reach a conclusion in that case; the information 17 expressly included “Income & Expense documentation submitted on 18 behalf of [Joni and the Debtor].” Bk. Dkt. No. 130 at p. 14. 19 The Ruling awarded fees to Joni, concluding that: “[t]o 20 equitably apportion the cost of the pending litigation the court 21 does find that it is just and reasonable to order that [the 22 Debtor] pay for a portion of the fees incurred by [Joni].” Id. 23 The Debtor did not pay the attorney’s fees, a writ of 24 execution issued, and the Ventura County Sheriff’s Office levied 25 on the Debtor’s wages in the amount of $3,777.90. Unhappy with 26 this development, the Debtor filed a chapter 13 petition and 27 claimed a wildcard exemption on the funds held by the Sheriff. 28 The Debtor later moved under § 522(f) to avoid what he

3 1 characterized as the lien held by Joni’s counsel.3 Although 2 Joni’s family court counsel did not oppose the motion, Joni 3 did.4 Among other things, she argued that the lien was not 4 subject to avoidance because it secured a claim that was in the 5 nature of spousal support pursuant to § 523(a)(5) and, thus, 6 excluded from avoidance by § 522(f)(1)(A). 7 At the hearing on the matter, the bankruptcy court denied 8 the Debtor’s motion. Although the Debtor argued that the 9 attorney’s fee award was separate and distinct from the spousal 10 support award, the bankruptcy court found that the fee award was 11 a domestic support obligation within the meaning of §§ 523(a)(5) 12 and 101(14A). It pointed out, in particular, that case law 13 established that an award of attorney’s fees made as part of the 14 Ruling was “entitled to the same priority and 15 non-dischargeability as the spousal support itself.” Hr’g Tr. 16 (Mar. 24, 2016) at 4:21-25. 17 Following the bankruptcy court’s entry of an order denying 18 the Debtor’s motion to avoid lien, the Debtor timely appealed. 19 3 The record does not describe the judicial lien at issue. 20 Perhaps, the judicial lien is an execution lien under California 21 Code of Civil Procedure § 697.710 or a lien created by an earnings withholding order under California Code of Civil 22 Procedure § 706.029. Joni argued before the bankruptcy court that no lien existed. She also argued that the Debtor lost 23 title to the funds at issue after levy. Because Joni does not 24 reassert these arguments on appeal, she has abandoned them and we do not address them. 25 4 A few documents were not included in the excerpts of 26 record. Thus, we exercise our discretion to take judicial 27 notice of documents electronically filed in the bankruptcy case. See Atwood v. Chase Manhattan Mortg. Co. (In re Atwood), 28 293 B.R. 227, 233 n.9 (9th Cir. BAP 2003).

4 1 JURISDICTION 2 The bankruptcy court had jurisdiction pursuant to 28 U.S.C. 3 §§ 1334 and 157(b)(2)(A). We have jurisdiction under 28 U.S.C. 4 § 158. 5 ISSUE 6 Whether the bankruptcy court erred in denying the Debtor’s 7 motion to avoid a lien pursuant to § 522(f)(1). 8 STANDARDS OF REVIEW 9 Whether a creditor’s judicial lien is avoidable under 10 § 522(f)(1) is a question of law, which we review de novo. 11 McCoy v. Kuiken (In re Kuiken), 484 B.R. 766, 769 (9th Cir. BAP 12 2013). Whether a debt constitutes a domestic support obligation 13 under the Code is a factual finding, which we review for clear 14 error. See Beaupied v. Chang (In re Chang), 163 F.3d 1138, 1140 15 (9th Cir. 1998). A factual finding is clearly erroneous if it 16 is illogical, implausible, or without support in inferences that 17 may be drawn from the facts in the record. See 18 TrafficSchool.com, Inc. v. Edriver Inc., 653 F.3d 820, 832 19 (9th Cir. 2011).

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In re: Joseph M. Gately, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-joseph-m-gately-bap9-2016.