In re Villaverde

540 B.R. 431, 2015 Bankr. LEXIS 3561, 2015 WL 6437204
CourtUnited States Bankruptcy Court, C.D. California
DecidedOctober 21, 2015
DocketCase No. 6:15-bk-16988-SY
StatusPublished
Cited by5 cases

This text of 540 B.R. 431 (In re Villaverde) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Villaverde, 540 B.R. 431, 2015 Bankr. LEXIS 3561, 2015 WL 6437204 (Cal. 2015).

Opinion

MEMORANDUM DECISION ON CHAPTER 13 TRUSTEE’S ORAL OBJECTION TO CONFIRMATION AND MOTION TO DISMISS

Scott H. Yun, United States Bankruptcy Judge

Before the court is the chapter 131 trustee’s (the “Trustee”) oral objection to eon-firmation of a chapter 13 plan and motion to dismiss the bankruptcy case filed by the debtors Elaine Villaverde and Karen Hight (the “Debtors”), a same-sex couple registered as domestic partners in California, on the grounds that the Debtors are not considered “spouses” eligible to file a joint petition under the Bankruptcy Code. For the reasons set forth below, the court agrees with the Trustee’s eligibility argument and concludes that domestic partners cannot be considered “spouses” for bankruptcy purposes following the recent legalization of same-sex marriage in California and throughout the country.

1. FACTUAL BACKGROUND.

The Debtors are two women in a same-sex relationship. In June 2004, they registered their domestic partnership with the California Secretary of State’s Domestic Partners Registry. At that time, the state of California regrettably did not allow or recognize same-sex marriage. If it had been legal then, the Debtors acknowledged that they would have gotten married. They remain domestic partners today despite the re-legalization of same-sex marriage in California in 2013.2

On July 13, 2015, the Debtors filed a joint chapter 13 petition. At their confirmation hearing, the Trustee orally objected to the Debtors’ plan and requested [433]*433dismissal of their case, arguing that the Debtors were ineligible to file a joint petition due to their status as registered domestic partners. The court allowed the parties to file supplemental briefs on the issue and took the matter under submission on October 20, 2015.

2. JURISDICTION.

This memorandum decision contains the court’s findings of fact and conclusions of law required by Federal Rule of Civil Procedure 52(a), made applicable to this contested matter by Bankruptcy Rules 7052 and 9014(c). The court has jurisdiction under 28 U.S.C. § 1334 and 11 U.S.C. §§ 302 and 1307, and this is a core proceeding under 28 U.S.C. § 157(b)(2)(A).

3. DISCUSSION.

3.1. Introduction.

On request of a party in interest, the court may dismiss a chapter 13 case or convert it to a chapter 7 case upon a finding of cause. See 11 U.S.C. § 1307(c). Such “cause” may include a debtor’s failure to meet eligibility requirements. See Smith v. Rojas (In re Smith), 435 B.R. 637, 649 (9th Cir. BAP 2010) (affirming dismissal of chapter 13 case due to debtors exceeding the § 109(e) debt limits).

The eligibility issue in this case arises under § 302 of the Bankruptcy Code, which states that “[a] joint case ... is commenced by the filing with the bankruptcy court of a single petition ... by an individual that may be a debtor ... and such individual’s spouse.” 11 U.S.C. § 302(a) (emphasis added). The dispute here is whether “an individual ... and such individual’s spouse” include an individual debtor and his or her domestic partner whose domestic partnership is registered in California. In other words, are domestic partners considered “spouses” for purposes of § 302?

3.2. Defining the Term “Spouse.”

In addition to § 302, the term “spouse” appears in several other provisions of the Bankruptcy Code. See, e.g., id. § 101(14A) (defining “domestic support obligation” as alimony, maintenance, or support debt owed to a “spouse” or “former spouse”); id. § 523(a)(15) (excepting from discharge a property settlement debt owed to a “spouse” or “former spouse”), id. § 541(a)(2) (defining estate property to include “[a]ll interests of the debtor and the debtor’s spouse in community property”). However, there is no definition for the term found in the Code itself.

3.2.1. DOMA’s Definition of “Spouse. ”

From 1996 until 2013, the Defense of Marriage Act (“DOMA”) provided the controlling definitions of “marriage” and “spouse” for all federal law purposes. See Pub.L. No. 104-199, § 3(a), 110 Stat. 2419, 2419 (1996) (codified at 1 U.S.C. § 7). The term “marriage” meant “only a legal union between one man and one woman as husband and wife,” while the term “spouse” “refer[red] only to a person of the opposite sex who is a husband or. a wife.” Id.

Applying DOMA’s restrictive definition of “spouse” in the bankruptcy context, at least one court has dismissed a joint petition filed by a married same-sex couple because they were not spouses. See In re Kandu, 315 B.R. 123, 148 (Bankr.W.D.Wash.2004). Yet, other bankruptcy courts have declined to dismiss joint peti[434]*434tions filed by married same-sex couples, see, e.g., In re Somers, 448 B.R. 677, 682-84 (Bankr.S.D.N.Y.2011), with one bankruptcy court eyen ruling that DOMA was unconstitutional. See In re Balas, 449 B.R. 567, 578-80 (Bankr.C.D.Cal.2011).

In 2013, the issue of DOMA’s constitutionality reached the Supreme Court in the case of United States v. Windsor, — U.S. —, 133 S.Ct. 2675, 186 L.Ed.2d 808 (2013). There, the Supreme Court held that DOMA was unconstitutional for depriving the equal liberty of persons protected by the Fifth Amendment and struck down DOMA’s definitions for “marriage” and “spouse.” See id. at 2695-96. Following Windsor, there no longer remains a federal statute specifically defining “spouse.”

3.2.2. Ordinary Meaning of “Spouse.

Without a controlling statutory' definition, the court must look for the ordinary meaning of “spouse” by turning to dictionaries and similar sources. See Kenneth H. Klee & Whitman L. Holt, Bankruptcy and the Supreme Court: 1801-2014, at 20 (2015) (citing Clark v. Rameker, — U.S. —, 134 S.Ct. 2242, 2246, 189 L.Ed.2d 157 (2014); Hall v. United States, — U.S. —, 132 S.Ct. 1882, 1887, 182 L.Ed.2d 840 (2012); Ransom v. FIA Card Servs., N.A., 562 U.S. 61, 69, 131 S.Ct. 716, 178 L.Ed.2d 603 (2011); Hamilton v. Lanning, 560 U.S. 505, 513-14, 130 S.Ct. 2464, 177 L.Ed.2d 23 (2010)).

One dictionary defines the term to mean “[o]ne’s husband or wife by lawful marriage; a married person.” Black’s Law Dictionary 1621 (10th ed.2014). Another describes “spouse” as “[a] marriage partner; a husband or wife.” American Heritage Dictionary of the English Language 1694 (5th ed.2011).

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Cite This Page — Counsel Stack

Bluebook (online)
540 B.R. 431, 2015 Bankr. LEXIS 3561, 2015 WL 6437204, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-villaverde-cacb-2015.