In re Ramirez

547 B.R. 449, 2016 WL 873177
CourtUnited States Bankruptcy Court, S.D. Florida.
DecidedMarch 7, 2016
DocketCase No. 08-29681-JKO
StatusPublished

This text of 547 B.R. 449 (In re Ramirez) 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 Ramirez, 547 B.R. 449, 2016 WL 873177 (Fla. 2016).

Opinion

ORDER ON MOTION FOR SANCTIONS

John K. Olson, Judge,

United States Bankruptcy Court

This case came before the Court on October 5, 2015, on the Debtors’ Motion for Sanctions (the “Motion”) [ECF 173] against Magnolia Court Condominium Association (the “Association”) for violation of the discharge injunction-.

On September 30, 2015, the Association filed its Response [ECF 177]. On October 7, 2015, this Court' entered an Order Directing a Briefing Schedule [ECF 179] with respect to Debtors’ Motion. On October 26, 2015, Debtors timely filed a Memorandum of Law in Support of Debtors’ Motion [ECF 183]. On November 2, 2015, the Association timely filed a Reply [ECF 184]. On December 30, 2015, the Association also filed a Notice of Supplemental Authority [ECF 185].

I. Facts

On December 22, 2008, the Debtors filed this Chapter 13 bankruptcy case [ECF 1], The Association was listed as a creditor on [451]*451Schedule D for unpaid 'condominium assessments on real property located at 7638 Forest City Road # 73, Orlando, FL 32810 (the “Real Property”). On August 3, 2009, the Debtors filed a Second Amended Chapter 13 Plan [ECF 103] that was confirmed, by Order [ECF 107] on August 26, 2009. The Debtors received a discharge [ECF 166] on April 8, 2014 pursuant to 11 U.S.C. § 1328(a) as they had completed all payments due under the plan. The case was subsequently closed on June 4, 2014 [ECF 170].

After the discharge was entered, the Association, through counsel, made demand upon the Debtor, Ivanna Ramirez, for post petition assessments. Following the Debtor’s refusal to pay, the Association filed a law suit in the Ninth Judicial Circuit in and for Orange County, Florida, and proceeded to obtain a monetary judgment against the Debtor. See Case No.2015-ca-6436-o.

On September 15, 2015, the Debtors filed this Motion for Sanctions for Violation of the Discharge Injunction [ECF 173].

II. Analysis

Some historical context is important. In 1990, the Seventh Circuit Court of Appeals considered whether, in a chapter 7 context, a bankruptcy court’s discharge order discharged the Debtors’ obligation to pay post-petition condominium assessments for a condominium in which the Debtors did not reside. See In re Rosteck, 899 F.2d 694 (7th Cir.1990). In Rosteck, the Court began its inquiry with' the question of when the debt arose. The 7th Circuit held that the condominium declaration was a pre-petition contract from which the post-petition assessments arose. Id. at 696-97. Accordingly, the debt was deemed discharged by the bankruptcy court’s discharge order.

In 1994, the Fourth Circuit Court of Appeals considered whether, in a chapter 7 context, “a discharge in bankruptcy relieves a debtor from personal liability for [postpetition] assessments of cooperative housing dues.” In re Rosenfeld, 23 F.3d 833, 835 (4th Cir.1994). The court in Rosenfeld declined to follow the reasoning in Rosteck. The court in Rosenfeld concluded that the “obligation to pay assessments is a function of owning the land with which the covenant runs” and the “obligation to pay assessments ar[ises] from [the Debt- or’s] continued ownership of the property and not from a [prepetition] contractual obligation. See id. at 837.

On October 22, 1994, Congress responded to Rosteck and its progeny by adding § 523(a)(16) to the bankruptcy code. The Bankruptcy Reform Act of 1994 became Public Law No. 103-394 on October 22, 1994 and § 523(a)(16) was further amended in 2005 by the Bankruptcy Abuse and Consumer Protection Act, Pub.L. 109-8 Stat. 23 § 442 (Apr. 20, 2005). In effect, these laws legislatively overruled Rosteck and Rosenfeld (emphasis added).

Pursuant to 11 U.S.C. § 523(a)(16):

(a) A discharge under section 727, 1141, 1228(a), 1228(b), or 1328(b) of this title does not discharge an individual debtor from any debt — (16) for a fee or assessment that becomes due and payable after the' order for relief to a membership association with respect to the debtor’s interest in a unit that has condominium ownership, in a share of a cooperative corporation, or a lot in a homeowners association, for as long as the debtor or the trustee has a legal, equitable, or possessory ownership interest in such unit, such corporation, or such lot, but nothing in this paragraph shall except from discharge the debt of a debtor for a membership association fee or assessment for a period arising be[452]*452fore entry of the order for relief in a pending or subsequent bankruptcy case.

11 U.S.C. § 523(a)(16) (emphasis added)1.

Pursuant to 11 U.S.C. § 1328(a)(2):

(a) Subject to subsection (d), as soon as practicable after completion by the debtor of all payments under the plan, and in the case of a debtor who is required by a judicial or administrative order, or by statute, to pay a domestic support obligation, after such debtor certifies that all amounts payable under such order or such statute that are due on or before the date of the certification (including amounts due before the petition was filed, but only to the extent provided for by the plan) have been paid, unless the court approves a written waiver of discharge executed by the debtor after the order for relief under this chapter, the court shall grant the debtor a discharge of all debts provided for by the plan or disallowed under section 502 of this title, except any debt— (2) of the kind specified in section 507(a)(8)(C) or in paragraph (1)(B), (1)(C), (2), (3), (4), (5), (8), or (9) of section 523(a).

11 U.S.C. § 1328(a)(2) (emphasis added).

On occasion, this Court has referred to the concept of the plain meaning rule as one of the canons of construction. See In re TUSA Florida, Inc., 186 B.R. 542 (Bankr.S.D.Fla.1995) (Hyman, J.) (stating “the plain meaning of legislation is conclusive, except in the rare cases in which the literal application of a statute will produce a result demonstrably at odds with the intention of its drafters”); see In re Benedetti, 372 B.R. 90 (Bankr.S.D.Fla.2007), but see In re David Ari Weinshank, 406 B.R. 413 (Bankr.S.D.Fla.2009) (stating “the plain meaning rule is not to be blindly applied if application leads to an absurd or futile result”). The Eleventh Circuit notes that “the clear language of a statutory provision holds a status above that of any other canon of construction, and often vitiates the need to consider any of the other canons. See CBS Inc., et al., v. Primetime 21 Joint venture,

Related

Glatter v. Mroz
65 F.3d 1567 (Eleventh Circuit, 1995)
Jove Engineering, Inc. v. Internal Revenue Service
92 F.3d 1539 (Eleventh Circuit, 1996)
Hardy v. United States Ex Rel. Internal Revenue Service
97 F.3d 1384 (Eleventh Circuit, 1996)
Merritt v. Dillard Paper Company
120 F.3d 1181 (Eleventh Circuit, 1997)
Chambers v. Nasco, Inc.
501 U.S. 32 (Supreme Court, 1991)
In Re Weinshank
406 B.R. 413 (S.D. Florida, 2009)
In Re Benedetti
372 B.R. 90 (S.D. Florida, 2007)
Foster v. Double R Ranch Ass'n (In Re Foster)
435 B.R. 650 (Ninth Circuit, 2010)
In re Coonfield
517 B.R. 239 (E.D. Washington, 2014)

Cite This Page — Counsel Stack

Bluebook (online)
547 B.R. 449, 2016 WL 873177, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-ramirez-flsb-2016.