In Re Shirley Mae TOMLIN, Debtor. COLONIAL AUTO CENTER, Plaintiff-Appellee, v. Shirley Mae TOMLIN, Defendant-Appellant

105 F.3d 933, 37 Collier Bankr. Cas. 2d 654, 1997 U.S. App. LEXIS 1748, 1997 WL 38122
CourtCourt of Appeals for the Fourth Circuit
DecidedFebruary 3, 1997
Docket95-2509
StatusPublished
Cited by152 cases

This text of 105 F.3d 933 (In Re Shirley Mae TOMLIN, Debtor. COLONIAL AUTO CENTER, Plaintiff-Appellee, v. Shirley Mae TOMLIN, Defendant-Appellant) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Shirley Mae TOMLIN, Debtor. COLONIAL AUTO CENTER, Plaintiff-Appellee, v. Shirley Mae TOMLIN, Defendant-Appellant, 105 F.3d 933, 37 Collier Bankr. Cas. 2d 654, 1997 U.S. App. LEXIS 1748, 1997 WL 38122 (4th Cir. 1997).

Opinion

Reversed and remanded by published opinion. Judge MOTZ wrote the opinion, in which Judge ERVIN and Judge WILKINS joined.

OPINION

DIANA GRIBBON MOTZ, Circuit Judge:

In this ease a creditor asserts that an order dismissing “with prejudice” a bankrupt debtor’s Chapter 7 petition precluded the debtor from subsequently seeking to discharge debts existing at the time of that order. Although a bankruptcy court certainly has the power to bar a debtor from further litigating the dischargeability of pending debts, the order at issue here is ambiguous. For this reason, we defer to the bankruptcy court’s interpretation of its own order as one limiting subsequent filings, not forever prohibiting the right to seek a discharge of existing debt, and revérse the district court’s contrary holding.

I.

On December 27, 1991, Shirley Mae Tomlin and her husband signed a retail installment contract with Colonial Auto Center, Inc. (“Colonial”) to purchase a pickup truck. Eight months later, Colonial repossessed the truck, then sold it at public auction. . The sale left a deficiency of $5,284.63. On May 28, 1993, Colonial obtained a state court judgment against Tomlin for the amount of the deficiency plus interest and court costs. Subsequently, Colonial obtained another judgment against Tomlin for $1,500.00 plus interest, arising from her failure to pay a deposit owing to Colonial. The balance remaining on these two judgments constitute the debt at issue in this ease.

This is the sixth bankruptcy petition Tomlin has filed in the past seven years. On May 25, 1990, Tomlin and her husband filed a petition pursuant to Chapter 13 of the Bankruptcy Code, 11 U.S.C. §§ 1301-1330 (1994). On August 20, 1990, the bankruptcy court confirmed the Tomlins’ Chapter 13 plan (an amended plan was confirmed on November 14,1990). On January 17,1991, Union Planters National Bank (“Union Planters”) moved for relief from the stay imposed pursuant to Chapter 13. On May 3,1991, the bankruptcy court ordered the stay lifted. On July 15, 1991, the bankruptcy court granted the Tom-lins’ voluntary motion to dismiss.

On July 25, 1991, Tomlin individually filed a second Chapter 13 petition. She did not submit a confirmable plan and on September 12, 1991, Union Planters moved for relief from the stay. On December 6, 1991, the bankruptcy court granted Tomlin’s motion to dismiss the petition.,

On April 24, 1992, Tomlin, again with her husband, filed still another Chapter 13 petition. During the pendency of this petition, the Tomlins neither attended creditors’ meetings nor timely filed bankruptcy schedules. On June 22, 1992,' the bankruptcy court heard the trustee’s motion to dismiss and ordered the Tomlins to cure all defaults by June 26, 1992. The Tomlins failed to abide by that order. On July 6, 1992, the bankruptcy court ordered the petition dismissed.

*936 On September 18, 1992, Tomlin filed a pro se Chapter 7 petition to stop the foreclosure sale of her residence. 11 U.S.C. §§ 701-728 (1994). During the pendency of this petition, Tomlin did not pay the filing fee, did not attend the creditors’ meeting, and did not file schedules. On November 13,1992, the bankruptcy court dismissed the petition.

On December 17,1992, Tomlin filed another pro se Chapter 7 petition again to stop the foreclosure sale of her residence. The next day, after Union Planters filed an emergency motion for relief from the stay, the bankruptcy court lifted the stay in an order in which it noted that it appeared that Tomlin had filed the petition in violation of 11 U.S.C. § 109(g) (1994). A month later, on January 21, 1993, the trustee filed a motion to dismiss Tomlin’s petition “with prejudice” because she had caused unreasonable delay that was prejudicial to her creditors by failing to: appear at an initial creditors’ meeting, timely file her schedules, or prosecute the bankruptcy case she had filed two months before. Tomlin did not respond in any way to the trustee’s motion. After a hearing, which Tomlin did not attend, on February 11,1993, the bankruptcy court issued a dismissal order, stating only that “[f]or the reasons set forth” in the trustee’s motion, Tomlin’s petition would be dismissed “with prejudice.”

Twenty months later, on October 14, 1994, Tomlin filed another Chapter 7 petition; this time she was represented by counsel. On November 15, 1994, the bankruptcy court entered an order discharging Tomlin’s debts.

Prior to that discharge order, Colonial filed the instant action to determine the dis-chargeability of debts pending as of the February 11, 1993 order dismissing “with prejudice” Tomlin’s December 17, 1992 Chapter 7 petition. Colonial moved for summary judgment, asserting that the February 11 order barred Tomlin fi-om subsequently seeking to discharge debts existing at that time.

After a hearing, the bankruptcy court issued an order and a memorandum opinion denying Colonial’s motion for summary judgment. The bankruptcy court reasoned:

[T]he [February 11, 1993] dismissal order, although ambiguously designated simply “with prejudice,” was intended only to invoke the sanction set forth in the first paragraph of § 109(g) — that the debtor be barred from filing another petition for 180 days. The matters addressed in the trustee’s motion do not warrant imposition of the far more serious sanction of making all pending debts nondischargeable. The trustee did not request such a severe sanction in either the motion or at the hearing. And because the debtor did not appear at the hearing, the order dismissing the case was in effect by default.

(footnotes omitted).

Colonial appealed to the district court, which reversed. Colonial Auto Center, Inc. v. Tomlin, 184 B.R. 720 (W.D.Va.1995). The district court recognized that, if there were “any ambiguity or obscurity” in an order, reference could properly be made to the “findings and entire record for determining what was decided.” Id. at 727 (quoting Security Mut. Cas. Co. v. Century Cas. Co., 621 F.2d 1062, 1066 (10th Cir.1980)). However, the district court found no “ambiguity or obscurity” in the bankruptcy court’s order and so held the order had the “res judicata effect of precluding the discharge of debts in subsequent bankruptcy petitions.” Id. Tomlin appeals.

II.

The first question presented here is a deceptively simple one: is the bankruptcy court’s February 11, 1993 order ambiguous. Our review of this legal question is de novo.

Colonial asserts that “dismissed with prejudice” can have “only one reasonable interpretation,” namely, the final dismissal of all claims that were, or could have been, brought in the action. Brief for Appellee at 8.

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Bluebook (online)
105 F.3d 933, 37 Collier Bankr. Cas. 2d 654, 1997 U.S. App. LEXIS 1748, 1997 WL 38122, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-shirley-mae-tomlin-debtor-colonial-auto-center-plaintiff-appellee-ca4-1997.