In Re Thompson

456 B.R. 121, 2010 Bankr. LEXIS 1326, 2010 WL 1850232
CourtUnited States Bankruptcy Court, M.D. Florida
DecidedMay 6, 2010
Docket6:05-bk-16719
StatusPublished
Cited by1 cases

This text of 456 B.R. 121 (In Re Thompson) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, M.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 Thompson, 456 B.R. 121, 2010 Bankr. LEXIS 1326, 2010 WL 1850232 (Fla. 2010).

Opinion

MEMORANDUM OPINION

ARTHUR B. BRISKMAN, Bankruptcy Judge.

This matter came before the Court on the Emergency Motion to Reopen Case and the Motion for Contempt (Doc. Nos. 56, 73) filed by Cecil Thompson, the pro se Debtor (“Cecil”), alleging John R. Heffer-an, Jr. (“Hefferan”) willfully violated the discharge injunction of 11 U.S.C. Section 524(a) and is in contempt of Court. 1 A hearing was held on November 30, 2009 at which Cecil and Hefferan appeared.

Sanctions are due to be imposed against Hefferan for his willful violations of the discharge injunction and orders of this Court. The Court makes the following Findings of Fact and Conclusions of Law after reviewing the pleadings and evidence, hearing live proffers and argument, and being otherwise fully advised in the premises.

FINDINGS OF FACT

Synopsis

This sanctions matter derives from the divorce of Cecil and Valarie Thompson (“Valarie”) and a series of attorney fee awards entered by the Florida State Court for fees incurred by Hefferan as Valarie’s divorce counsel. Cecil and Valarie, post-divorce, each filed for Chapter 7 bankruptcy protection and received discharges. Cecil and Valarie, during the pendency of Cecil’s bankruptcy case (in which Valarie filed an adversary proceeding against Cecil), executed a global settlement agreement resolving all of their issues and pursuant to which Valarie released Cecil from any attorney’s fees indebtedness. The Florida State Court entered an order approving and ratifying their settlement agreement.

Hefferan participated in the bankruptcy cases. His attorney fee claims were discharged. Neither Cecil nor Valarie is indebted to Hefferan for any amount pursuant to their settlement agreement, the Florida State Court’s approval and ratification of the Settlement Agreement, and their Chapter 7 discharges. Hefferan has attempted to collect the discharged fees from Cecil in violation of the discharge injunction. His actions have been willful and egregious and warrant the imposition of significant sanctions.

Florida State Court Proceedings:

Fee Awards

Cecil instituted a divorce proceeding against Valarie in 2003 in the Circuit Court of the Eighteenth Judicial Circuit in and for Seminole County, Florida. 2 Four orders awarding attorney’s fees for Heffer-an’s services were entered (collectively, “State Court Fee Orders”):

(i) March lh 2005: Order for Temporary Attorney’s Fees entered against Cecil and in favor of Valarie awarding Valarie temporary attorney’s fees of $15,000.00 to be paid directly to Hef-feran. 3
*124 (ii) August 29, 2006: Corrected Order on Motion for Temporary Attorney’s Fees granting Valarie’s request for additional attorney’s fees of $15,000.00 and directing Cecil to pay such fees at the rate of $1,000.00 per month. 4
(iii) March 9, 2007: Order Adjudicating Charging Lien entered against Valarie and in favor of Hefferan for $28,126.00, plus interest at the legal rate:
as the remainder of [Hefferan’s] reasonable attorney’s fees ... [Hef-feran] has established and shall have a valid Attorney’s Charging Lien for said total sum due ($28,-216.00) directly from Valarie Thompson, which shall be payable from and attach to or to be distributed to all of Valarie Thompson’s right, title, and interest in [and to] any and all assets distributed to Valarie Thompson by virtue of any adjudication or settlement in this cause which are proceeds to be received by Valarie Thompson either by way of equitable distribution, lump-sum alimony immediately distributed to [Valarie] at Final Judgment. 5
(iv) November 9, 2009: Final Summary Judgment entered against Cecil and in favor of Hefferan for $27,258.31 plus accumulated interest of $7,218.16, with interest to accrue at the rate of nine percent. 6

The State Court Fee Orders do not specify the fee awards are for, or are in the nature of, alimony, maintenance, or support for Valarie or a child.

Cecil appealed the March 9, 2007 Charging Lien Order to the Fifth District Court of Appeals of the State of Florida (“Fifth DCA”). 7 It appears from the parties’ submissions the appeal was stayed by the Fifth DCA pending the outcome of this sanctions matter. 8

The State Court Fee Orders are interrelated in that each order is predicated upon the previous order: the August 29, 2006 Corrected Order contains the original 2005 fee award of $15,000.00, plus additional temporary attorney’s fees of $15,000.00; the 2007 Charging Lien Order contains the fees awarded pursuant to the 2005 and 2006 Temporary Fee Orders, plus additional fees incurred by Hefferan and interest; the 2009 Final Summary Judgment contains the Charging Lien Order award, plus additional fees incurred by Hefferan and interest. The original 2005 fee award of $15,000.00 is a component of all three subsequent fee orders.

Florida State Court Proceedings: Settlement Agreement

Valarie terminated Hefferan’s services on November 6, 2006. 9 Cecil and Valarie executed a Settlement Agreement on No *125 vember 7, 2006. 10 They executed the Settlement Agreement while Cecil’s bankruptcy case and a related adversary proceeding were pending. The Settlement Agreement: (i) resolves all of their divorce and bankruptcy issues; (ii) provides Cecil is to pay $48,000.00 to Valarie through installment payments; and (iii) resolves attorney fee issues:

Each party agrees that they shall be solely responsible for any and all attorney’s fees or costs incurred by them whether in the action pending before the Circuit Court of Seminole County, Florida or in the United States Bankruptcy Court for the Middle District of Florida. This shall include such sums as may have been heretofore ordered on a temporary or permanent basis by either the Circuit Court in and for Seminole County, Florida or in the United States Bankruptcy Court for the Middle District of Florida. Specifically but not as a limitation [Valarie] as further consideration for this Agreement does hereby waive[ ] the payment and benefit of and releases [Cecil] from the obligation of that certain order entered by the Circuit Court of Seminole County Florida bearing the case number set forth herein above bearing [the] date of August 29, 2006. 11

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Cite This Page — Counsel Stack

Bluebook (online)
456 B.R. 121, 2010 Bankr. LEXIS 1326, 2010 WL 1850232, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-thompson-flmb-2010.