Knight, Anthony v. Minter, LaTonya

CourtCourt of Appeals of Texas
DecidedMay 14, 2013
Docket05-11-01045-CV
StatusPublished

This text of Knight, Anthony v. Minter, LaTonya (Knight, Anthony v. Minter, LaTonya) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Knight, Anthony v. Minter, LaTonya, (Tex. Ct. App. 2013).

Opinion

DISMISS; and Opinion Filed May 14, 2013.

S In The Court of Appeals Fifth District of Texas at Dallas No. 05-11-01045-CV

ANTHONY KNIGHT, Appellant V. LATONYA MINTER, Appellee

On Appeal from the County Court at Law No. 4 Dallas County, Texas Trial Court Cause No. CC-10-09003-D

MEMORANDUM OPINION Before Justices Lang-Miers, Murphy, and Fillmore Opinion by Justice Fillmore By letter dated April 26, 2013, the Court questioned its jurisdiction over this appeal. We

specifically questioned whether, given the applicability of section 362(b)(22) of the bankruptcy

code, the notice of appeal had been timely filed. See 11 U.S.C.A. § 362(b)(22) (West Supp.

2013) (unless debtor has complied with requirements in section 362(l), filing of bankruptcy

petition does not operate as stay of residential eviction action in which lessor obtained judgment

for possession prior to date debtor filed bankruptcy petition). We instructed the parties to file a

jurisdictional brief within ten days of the date of the letter. Anthony Knight filed a jurisdictional

brief. As of today’s date, LaTonya Minter has not appeared in this case. We dismiss this appeal

for lack of jurisdiction. Background

Minter filed a petition for forcible entry and detainer against Knight, seeking to recover

possession of certain residential property and unpaid rent. The justice court granted the petition

on December 7, 2010. Knight appealed the judgment to the county court and, on April 8, 2011,

the county court signed a final judgment awarding Minter both possession of the property and

$5,664.00. On April 25, 2011, Knight filed in the trial court a Suggestion of Bankruptcy

indicating he had filed for relief under the bankruptcy code on April 22, 2011 and “suggest[ing]

that this action has been stayed by operation of 11 U.S.C. § 362.”

On July 25, 2011, the United States Bankruptcy Court heard Minter’s “Motion to Cease

and Evict” filed in Knight’s bankruptcy proceedings. The bankruptcy court considered Minter’s

motion as a request “to determine the applicability of the automatic stay, or, alternatively, a

motion to modify the automatic stay.” The bankruptcy court found Knight “failed to comply

with the requirements of section 362(l) of the Bankruptcy Code” and, therefore, “the

continuation of Minter’s eviction action is not stayed in accordance with section 362(b)(22) of

the Bankruptcy Code.” On August 3, 2011, Knight filed his notice of appeal from the trial

court’s April 8, 2011 final judgment contesting only the trial court’s award of possession of the

property to Minter.

Analysis

The filing of a petition under the bankruptcy code generally triggers the application of the

automatic stay and brings to a halt most actions by creditors against the debtor, including “any

act to obtain possession of property of the estate or of property from the estate or to exercise

control over property of the estate[.]” 11 U.S.C.A. § 362(a)(3) (West 2004); In re Pegasus

Funds TFN Trading Partners, LP, 345 S.W.3d 175, 176 (Tex. App.—Dallas 2011, orig.

proceeding). The automatic stay deprives state courts of jurisdiction until the stay is lifted or

–2– modified. Kalb v. Feuerstein, 308 U.S. 433, 439 (1940); Howell v. Thompson, 839 S.W.2d 92,

92 (Tex. 1992) (order). Accordingly, the automatic stay bars the filing of a notice of appeal in an

action against the debtor in bankruptcy because that would constitute a continuation of the

action. Brashear v. Victoria Gardens of McKinney, L.L.C., 302 S.W.3d 542, 546 (Tex. App.—

Dallas 2009, no pet.) (op. on reh’g).

However, the bankruptcy code provides certain exceptions to the application of the

automatic stay. 11 U.S.C.A. § 362(b) (West 2004 and Supp. 2013). One such exception, added

to the bankruptcy code as part of the Bankruptcy Abuse Prevention and Consumer Protection Act

of 2005, provides that, subject to section 362(l), the filing of a bankruptcy petition does not

trigger the protection of the stay with respect to:

the continuation of any eviction, unlawful detainer action, or similar proceeding by a lessor against a debtor involving residential property in which the debtor resides as a tenant under a lease or rental agreement and with respect to which the lessor has obtained before the date of the filing of the bankruptcy petition, a judgment for possession of such property against the debtor.

Id. § 362(b)(22); In re Alberts, 381 B.R. 171, 176 (Bankr. W.D. Penn. 2008).

Section 362(l) provides a limited exception to the strictures of section 362(b)(22). 11

U.S.C.A. § 362(l) (West Supp. 2013); In re Williams, 371 B.R. 102, 106 (Bankr. E.D. Penn.

2007). First, a debtor who has incurred a pre-petition judgment for possession of residential real

estate can avoid the operation of section 362(b)(22) for thirty-days following the filing of the

petition if the debtor files with the petition and serves upon the lessor a certification under

penalty of perjury that: (1) under applicable nonbankruptcy law the debtor may cure the default;

and (2) the debtor has deposited with the bankruptcy court clerk all rent that would become due

to the landlord during the thirty-day period following the bankruptcy filing. 11 U.S.C.A.

§ 362(l)(1); Williams, 371 B.R. at 106. Upon compliance with the initial certification

requirements, the debtor has a thirty-day window in which to cure the entire default leading to

–3– the judgment and provide a second certification of the cure to the bankruptcy court. 11 U.S.C.A.

§ 362(l)(2); Williams, 371 B.R. at 106. If the debtor complies with both certification

requirements, section 362(b)(22) will not apply unless the court orders otherwise under section

362(l)(3), which provides a procedure for the lessor to object and be heard with respect to either

a debtor’s initial or second certification. 11 U.S.C. § 362(l)(2), (l)(3)(A); Williams, 371 B.R. at

106. Finally, if the debtor fails to make either of the required certifications or the court upholds

the lessor’s objection to a certification, “subsection (b)(22) shall apply immediately,” and “relief

from the stay provided under subsection (a)(3) shall not be required to enable the lessor to

complete the process to recover full possession of the property.” 11 U.S.C.A. § 362(l)(3)(B)(i),

(l)(4)(A); see also Williams, 371 B.R. at 106–07. “[I]f the debtor does not make the

certifications with [his] petition, then absent some relief from the court, the filing of the debtor’s

petition will not operate as a stay of the continuation of the landlord’s eviction proceedings.” In

re Harris, 424 B.R. 44, 52–53 (Bankr. E.D. N.Y. 2010).

The judgment awarding possession of the property to Minter was signed prior to Knight

filing his bankruptcy petition. The record does not reflect that Knight filed the required

certification with his bankruptcy petition or the certification thirty days later verifying that he

had cured the default. Further, the bankruptcy court found that Knight failed to comply with the

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Related

In Re Williams
371 B.R. 102 (E.D. Pennsylvania, 2007)
Hernandez v. National Restoration Technologies, LLC
211 S.W.3d 309 (Texas Supreme Court, 2006)
In Re Harris
424 B.R. 44 (E.D. New York, 2010)
McCoy v. Texas Instruments, Inc.
183 S.W.3d 548 (Court of Appeals of Texas, 2006)
Brashear v. Victoria Gardens of McKinney, L.L.C.
302 S.W.3d 542 (Court of Appeals of Texas, 2009)
Howell v. Thompson
839 S.W.2d 92 (Texas Supreme Court, 1992)
In Re Pegasus Funds TFN Trading Partners, LP
345 S.W.3d 175 (Court of Appeals of Texas, 2011)
In the Interest of M.S.
115 S.W.3d 534 (Texas Supreme Court, 2003)

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