In Re Lopez

405 B.R. 382, 61 Collier Bankr. Cas. 2d 1716, 21 Fla. L. Weekly Fed. B 714, 2009 Bankr. LEXIS 1045
CourtUnited States Bankruptcy Court, S.D. Florida.
DecidedApril 17, 2009
Docket18-01410
StatusPublished
Cited by10 cases

This text of 405 B.R. 382 (In Re Lopez) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, S.D. Florida. primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Lopez, 405 B.R. 382, 61 Collier Bankr. Cas. 2d 1716, 21 Fla. L. Weekly Fed. B 714, 2009 Bankr. LEXIS 1045 (Fla. 2009).

Opinion

AMENDED ORDER SUSTAINING DEBTOR’S OBJECTION TO CLAIM OF JOSE RODRIGUEZ 1

LAUREL M. ISICOFF, Bankruptcy Judge.

This matter came before the Court on March 5, 2009, on Debtor Maria Lopez’ Objection to Claim of Jose Rodriguez [Claim # 7] (DE # 65); and Response to Debtor’s Objection to Claim (DE # 72) and Supplemental Memorandum of Law in Response (DE # 77) filed by Creditor Jose Rodriguez (“Rodriguez”). The Court has reviewed the pleadings filed by the parties, the record, the argument of counsel, and all other matters. For the reasons stated below, the Debtor’s objection to Claim # 7 of Jose Rodriguez is SUSTAINED.

ANALYSIS

Rodriguez, the Debtor’s ex-husband, filed an unsecured priority claim in the amount of $64,002.75. The proof of claim, which identifies the obligation as a domestic support obligation entitled to priority pursuant to 11 U.S.C. §§ 507(a)(1)(A) or (a)(1)(B), arises from an award of attorney fees in a dissolution proceeding. The Debtor objects to Rodriguez’ proof of claim on the basis that the award of attorney fees upon which the proof of claim is based is not a domestic support obligation and therefore is not entitled to priority status. The Debtor’s objection seeks to treat the full amount claimed as a general unsecured claim.

Section 507(a) of the Bankruptcy Code provides that certain claims are entitled to priority status; among these are domestic support obligations owed to a former spouse. While an award of attorney fees may be considered a domestic support obligation, as more fully discussed by this Court in Manz v. Palomino (In re Palomino), 355 B.R. 349 (Bankr.S.D.Fla. 2006), not every award of attorney fees in a dissolution proceeding will be considered as such. See also Simon, Schindler & Sandberg, LLP v. Gentilini (In re Gentilini), 365 B.R. 251 (Bankr.S.D.Fla.2007).

A “domestic support obligation,” as used in section 507(a)(1), is defined at 11 U.S.C. § 101(14A):

The term “domestic support obligation” means a debt that accrues before, on, or after the date of the order for relief in a case under this title, including interest that accrues on that debt as provided under applicable non-bankruptcy law notwithstanding any other provision of this title, that is—
(A) owed to or recoverable by—
(i) a spouse, former spouse, or child of the debtor or such child’s parent, legal guardian, or responsible relative; or
(ii) a governmental unit;
*384 (B) in the nature of alimony, maintenance, or support (including assistance provided by a governmental unit) of such spouse, former spouse, or child of the debtor or such child’s parent, without regard to whether such debt is expressly so designated;
(C) established or subject to establishment before, on, or after the date of the order for relief in a case under this title, by reason of applicable provisions of—
(i) a separation agreement, divorce decree, or property settlement agreement;
(ii) an order of a court of record; or
(iii)a determination made in accordance with applicable non-bankruptcy law by a governmental unit; and
(D) not assigned to a nongovernmental entity, unless that obligation is assigned voluntarily by the spouse, former spouse, child of the debtor, or such child’s parent, legal guardian, or responsible relative for the purpose of collecting the debt

In order for a debt to be considered a domestic support obligation, it must meet all four requirements of section 101(14A).

The only element of section 101(14A) in question in this case is whether the attorney fees are “in the nature of alimony, maintenance, or support.” Citing to a number of cases interpreting the pre-BAPCPA 2 version of 11 U.S.C. § 523(a)(5), 3 Rodriguez argues that because the attorney fees on which the proof of claim is based are related to a custody, parentage, or visitation matter, the fees are in the nature of support. Rodriguez reads the case law too broadly.

The determination of whether a debt is “support” is a matter of federal law. Strickland v. Shannon (In re Strickland), 90 F.3d 444, 446 (11th Cir.1996). When determining whether an award of attorneys’ fees in a state court action constitutes support “the Bankruptcy Court may only undertake a simple inquiry as to whether the debt can be characterized as ‘support.’ ” Smallwood v. Finlayson (In re Finlayson), 217 B.R. 666, 669 (Bankr.S.D.Fla.1998) (citing In re Harrell, 754 F.2d 902, 906 (11th Cir.1985)). “Since federal law controls, a domestic obligation may be deemed in the nature of support under § 523(a)(5) even though it may not be classified as support under state law.” Id. However, the Court may look to state law for guidance on whether the obligation should be considered “in the nature of support.” Id. (citing In re Jones, 9 F.3d 878, 880 (10th Cir.1993)). Thus, despite Rodriguez’ assertions to the contrary, not every obligation created in connection with, or arising out of, a domestic matter, ipso facto, qualifies as a domestic support obligation.

The attorney fees award upon which the proof of claim is based arises from the family court’s Order Taxing and Awarding Attorney Fees and Costs and Supplemental Final Judgment entered in the Debtor’s and Rodriguez’s divorce action [In re Lopez v. Rodriguez, Case No. 06-22218 FC *385 17, ¶ 7 (Miami-Dade Cir. Ct. Family Div. April 8, 2008) (attached as exhibit to Claim of Creditor Jose A. Rodriguez, Claim # 7-1) ] (the “State Court Order”). The State Court Order, which was entered after the family court entered its Final Judgment of Dissolution of Marriage, specifically held that “[t]his Court’s award of attorney fees and costs in favor of the former Husband is based upon and supported by the bad faith litigation misconduct of the former Wife, and is not based upon the respective wages or ability of the parties to pay.” (Emphasis added). The plain language of the State Court Order contradicts Rodriguez’ assertion that the award was for “support,” whether this Court looks at the state law definition of support or the federal law definition of support.

Rodriguez relies on Section 61.16 of the Florida Statutes, cited in his supplemental memorandum. Fla. Stat.

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Cite This Page — Counsel Stack

Bluebook (online)
405 B.R. 382, 61 Collier Bankr. Cas. 2d 1716, 21 Fla. L. Weekly Fed. B 714, 2009 Bankr. LEXIS 1045, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-lopez-flsb-2009.