In Re Sumpter

171 B.R. 835, 1994 Bankr. LEXIS 1371, 1994 WL 483890
CourtUnited States Bankruptcy Court, N.D. Illinois
DecidedAugust 22, 1994
Docket19-05432
StatusPublished
Cited by51 cases

This text of 171 B.R. 835 (In Re Sumpter) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Sumpter, 171 B.R. 835, 1994 Bankr. LEXIS 1371, 1994 WL 483890 (Ill. 1994).

Opinion

MEMORANDUM OPINION

JOHN H. SQUIRES, Bankruptcy Judge.

This matter comes before the Court on the amended motion for contempt for an alleged willful violation of the automatic stay of 11 U.S.C. § 362(a), filed by Jimmie Lee Sump-ter, Jr. (the “Debtor”) seeking an award of actual and punitive damages, costs and attorney’s fees, pursuant to 11 U.S.C. § 362(h). Responses in opposition thereto have been filed by the respondents, Russell Zimmerman and Cheryl Zimmerman (the “Creditors”), and Thomas Fitzgerald, Sheriff of Will County, Illinois (the “Sheriff’). In addition, the Sheriff moved for judgment pursuant to Federal Rule of Bankruptcy Procedure 7052, incorporating by reference Federal Rule of Civil Procedure 52(c), at the conclusion of the presentation of the Debtor’s evidence at trial. The Court reserved ruling until the close of all the evidence. After consideration of the parties’ pleadings, arguments and all the evidence adduced at trial, the Court holds that the Creditors willfully violated the automatic stay of sections 362(a)(1), (a)(2) and (a)(6) by using agents who were off-duty employees of the Village of Bolingbrook, Illinois, to complete the post-bankruptcy removal and storage of the Debtor’s personal property. No actual damages for injury to or wrongful detention of the Debtor’s personal property are awarded for failure of proof. Punitive damages, however, are awarded in the sum of $1,000.00, as well as $1,000.00 for the Debtor’s reasonable attorney’s fees, plus court costs.

The Court grants the Sheriff’s motion for judgment. All relief against the Sheriff is denied. The Court finds the evidence showed no willful violation of the automatic stay by the Sheriff or his duly authorized deputies who assisted in the pre-petition eviction of the Debtor and his family from the subject real property. Moreover, the Sheriffs assertion of the sovereign immunity defense is well-founded and sustained.

I. JURISDICTION AND PROCEDURE

The Court has jurisdiction to entertain this motion pursuant to 28 U.S.C. § 1334 and Local General Rule 2.33(A) of the United States District Court for the Northern District of Illinois. This matter constitutes a core proceeding under 28 U.S.C. § 157(b)(2)(A) and (O). The Court rejects the Creditors’ argument that it lacks subject matter jurisdiction over this contested motion. Although Illinois law is involved in determination of some of the issues, the ultimate relief claimed under section 362(h) is a matter which arises under the Bankruptcy Code for purposes of 28 U.S.C. § 1334(b). Moreover, much of the conduct complained of occurred post-petition, so the relief sought arises in connection with the Debtor’s bankruptcy case. See Barnett v. Stern, 909 F.2d 973, 981 (7th Cir.1990); In re Spaulding & Co., 131 B.R. 84, 88 (N.D.Ill.1990).

II. FACTS AND BACKGROUND

Under date of December 28, 1992, the Creditors, as sellers, and the Debtor, his spouse, Beverly Sumpter, their daughter, Michelle Wilson, and her spouse, Henry Wilson, (collectively the “Buyers”), entered into Articles of Agreement for Deed (the “Agreement”) for the residential property commonly known as 1436 Carriage Lane, Bolingbrook, Illinois (the “Real Property”). See Creditors’ Exhibit No. 1. Like many Illinois contracts for deed, paragraph 21 of the Agreement *840 contained alternative provisions and remedies for default by the Buyers, which included the Creditors’ rights to forfeit the Buyers’ rights under the Agreement, and a right to maintain an action to recover possession of the Real Property under the Illinois Forcible Entry and Detainer Act (735 ILCS 5/9-101 et seq.), subject to the Buyers’ reinstatement rights.

The Creditors declared a forfeiture of the Agreement, inter alia, for failure to make the installment payments under the Agreement for the period February 1993, through August 1993. On September 15, 1993, the Creditors caused written notice to be sent of their demand to cure all defaults by or before October 15, 1993, and for possession thereafter for any failure to so cure. See Creditors’ Exhibit Nos. 2 and No. 3. The Creditors subsequently declared the Agreement forfeited by the Buyers for failure to cure. See Creditors’ Exhibit No. 4. A declaration of forfeiture was sent to the Buyers on October 15, 1993. See Creditors’ Exhibit No. 5. The Creditors then filed a state court action under the Illinois Forcible Entry and Detainer Act against the Buyers in the Circuit Court of Will County, Illinois, in order to regain possession of the Real Property. See Creditors’ Exhibit No. 6. On November 9, 1993, the state court entered an order for possession (the “State Court Order”) of the Real Property in favor of the Creditors against the Buyers. See Creditors’ Exhibit No. 7. None of the Buyers left the Real Property. The Debtor and his family occupied the Real Property as their residence. After entry of the State Court Order, the Creditors made ready to evict the Debtor and his family using deputies of the Sheriff.

Henry Wilson, the Debtor’s son-in-law, stopped the Creditors’ first efforts to enforce the State Court Order when he filed a Chapter 7 petition on November 16, 1993. Upon learning of Wilson’s bankruptcy, the Sheriffs deputies and the Creditors immediately stayed all efforts to enforce the State Court Order. The Creditors moved this Court pursuant to section 362(d) for an order modifying the automatic stay in that case. They were successful in obtaining such an order on December 3, 1993. That order authorized the Creditors to proceed with the eviction of the Debtor and his family.

The eviction and enforcement of the State Court Order began in the early afternoon of December 7,1993, when two deputy Sheriffs, the Creditors and other members of the Creditors’ family met at the Real Property at approximately 1:30 p.m. After Sergeant Bergeson and Deputy Ealey explained the process to the Debtor’s family members who were present (the Debtor was not present), the eviction began at approximately 2:00 p.m. The Creditors, assisted by other members of their family, began to physically remove all items of personal property from the interior of the dwelling structure used as a residence on the Real Property. The. locks were changed around 2:30 p.m., and the Creditors continued to move the personal property from the residence and stack it in the front yard area. The Creditors testified that they followed the directions of the Sheriffs deputies in moving and placing all personal property in the front yard.

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Cite This Page — Counsel Stack

Bluebook (online)
171 B.R. 835, 1994 Bankr. LEXIS 1371, 1994 WL 483890, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-sumpter-ilnb-1994.