Johnson v. Trewartha

CourtUnited States Bankruptcy Court, S.D. Indiana
DecidedAugust 14, 2025
Docket25-50031
StatusUnknown

This text of Johnson v. Trewartha (Johnson v. Trewartha) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, S.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Johnson v. Trewartha, (Ind. 2025).

Opinion

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UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF INDIANA INDIANAPOLIS DIVISION

IN RE: ) ) KAYLEE LYNNE JOHNSON, ) Case No. 25-008 16-JMC-7 ) Debtor. )

) KAYLEE LYNNE JOHNSON, ) ) Plaintiff, ) ) Vv. ) Adversary Proceeding No. 25-50031 ) KURT TREWARTHA, as ) Special Administrator of the Estate of ) Joshua Ray Trewartha, deceased, ) ) Defendant. )

ENTRY ON MOTION FOR JUDGMENT ON THE PLEADINGS THIS MATTER comes before the Court on the Motion for Judgment on the Pleadings filed by Kaylee Lynne Johnson (“Debtor”) on May 23, 2025 (Docket No. 10) (the “Motion”). The Court, having reviewed the Motion, the Brief in Support of Motion for Judgment on the Pleadings filed by Debtor on May 23, 2025 (Docket No. 10-1) (“Debtor’s Brief”), the Objection to Motion for Judgment on the Pleadings filed by Kurt Trewartha, as Special Administrator of

the Estate of Joshua Ray Trewartha, deceased (“Administrator”), on June 16, 2025 (Docket No. 14), the Brief in Opposition to Motion for Judgment on the Pleadings filed by Administrator on June 16, 2025 (Docket No. 15) (“Administrator’s Brief”), the Reply Brief in Support of Motion for Judgment on the Pleadings filed by Debtor on June 30, 2025 (Docket No. 19), the First

Amended Complaint to Determine Dischargeability of Debt filed by Debtor on April 10, 2025 (Docket No. 4) (the “Complaint”), and Defendant’s Answer to Plaintiff’s First Amended Complaint to Determine Dischargeability of Debt filed by Administrator on May 7, 2025 (Docket No. 7) (the “Answer”), and being otherwise duly advised, now RULES upon the Motion as follows: Introduction In this adversary proceeding, Debtor seeks a determination that a “wrongful death” claim asserted by Administrator is not excepted from the discharge Debtor was granted in her underlying bankruptcy case on May 28, 2025. Said another way, Debtor asks the Court to determine that Administrator’s claim has been discharged in her bankruptcy case.

The procedural posture of this adversary proceeding is not typical of proceedings that creditors regularly file in this Court seeking a determination that a “claim” is excepted from discharge pursuant to Bankruptcy Code § 523.1 The procedural posture of this proceeding varies from more typical proceedings in two very material respects: (1) Debtor, not a creditor, preemptively commenced, and is the plaintiff in, this proceeding; and (2) the applicable deadline by which Administrator must fully set forth all of the legal and factual bases for Administrator’s allegedly nondischarged wrongful death “claim” has not yet expired. Administrator filed a state court lawsuit against Debtor before Debtor commenced the

1 Unless otherwise noted, all statutory references herein are to the United States Bankruptcy Code, 11 U.S.C. § 101 et seq. underlying bankruptcy case, but Administrator’s “claim”, set forth in the state court complaint, may not be the final statement of Administrator’s nondischargeable “claim”. In a more standard proceeding commenced by a creditor seeking a determination of nondischargeability of a “claim”, (1) the creditor’s claim has either been reduced to judgment, in state or federal court,

before the commencement of the proceeding or the creditor seeks such a judgment, fully liquidating the claim, in and as part of the proceeding; and/or (2) the creditor has filed a proof of claim in the bankruptcy case setting forth all legal and factual bases for such “claim(s)”. In either scenario, the bankruptcy court makes its determination of nondischargeability in the context of a fully and finally matured claim. In this proceeding, Debtor asks the Court to make the nondischargeability determination before the “claim” has been fully and finally pled, litigated or liquidated. Debtor’s request comes at a very early stage of her litigation with Administrator. A number of circumstances have taken us critically out of the normal procedural posture. On December 12, 2024, Administrator filed a Complaint for Wrongful Death (the “State Court Complaint”) in the Hendricks Superior Court. (A true and accurate copy of the State Court

Complaint is attached as Exhibit A.) The Indiana Rules of Trial Procedure required Administrator, by the State Court Complaint, to make “a short and plain statement of the claim showing that [Administrator] is entitled to relief” from [Debtor]. Indiana Trial Rule 8(A)(1). Administrator filed the State Court Complaint before Debtor commenced her bankruptcy case on February 24, 2025. The bankruptcy trustee appointed in Debtor’s chapter 7 case determined the bankruptcy case to be a “no asset” bankruptcy case. Therefore, Administrator has not been required to file a proof of claim. Moreover, because Debtor commenced this proceeding preemptively, the period within which Administrator may commence a proceeding seeking a determination that a particular “claim”, with all elements of such “claim” fully and finally set forth, has not expired.2 The time within which Administrator must fully and finally set forth the legal and factual basis or bases of an allegedly nondischargeable “claim” (other than the claim set forth in the State Court Complaint) has not yet expired. The Court may rule on the Motion as it applies to

the “claim” asserted by Administrator in the State Court Complaint. However, such a ruling will not result in the discharge of all possible additional claims that might yet be asserted by Administrator against Debtor as non-dischargeable claims. Administrator may still have time to assert such additional claims.3 Various possible “constraints” (discussed below) may bar or restrict Administrator from asserting such an additional “claim” against Debtor, other than and beyond the “claim(s)” already asserted by Administrator in the State Court Complaint (potential “Additional Claims”). But, the possibility exists that Administrator may timely assert one or more such Additional Claims. Therefore, the Court’s final ruling in this proceeding has to take into account not only the “claim” asserted by the State Court Complaint, but also such possible, currently unasserted,

Additional Claims. The Court’s jurisdiction to hear and finally determine any of Administrator’s “wrongful death” claims is severely circumscribed, if not non-existent. Generally, without consent of all parties, bankruptcy courts do not have jurisdiction to liquidate or otherwise determine the validity of “personal injury tort or wrongful death claims” against the bankruptcy estate. 28 U.S.C. §§ 157(b)(2)(B), (b)(2)(O) and (b)(5). However, only this Court may determine whether any particular claim will be excepted from Debtor’s bankruptcy discharge. See § 523(c). Before

2 As footnote 2 to Debtor’s Motion for Protective Order Staying Discovery filed on May 29, 2025 (Docket No. 11), Debtor concedes “Ms. Johnson has consented to the suspension of any deadline imposed upon [Administrator] by operation of 11 U.S.C. § 523(c).” (Bankruptcy Case Docket No. 25.)

3 Administrator makes this point at pp. 6-7 of Administrator’s Brief. the Court can make such a final determination, all personal injury tort / wrongful death claims in question must be liquidated by another court of competent jurisdiction. As Administrator has pointed out, bankruptcy courts regularly modify the automatic stay of § 362 to allow plaintiffs with unliquidated personal injury tort or wrongful death claims to

liquidate such claims in state court. (See Administrator’s Brief, pp.

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Johnson v. Trewartha, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johnson-v-trewartha-insb-2025.