Koppel v. Koppel (In Re Koppel)

165 B.R. 376, 1994 Bankr. LEXIS 496, 1994 WL 120026
CourtUnited States Bankruptcy Court, E.D. New York
DecidedApril 6, 1994
Docket1-19-40839
StatusPublished
Cited by3 cases

This text of 165 B.R. 376 (Koppel v. Koppel (In Re Koppel)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Koppel v. Koppel (In Re Koppel), 165 B.R. 376, 1994 Bankr. LEXIS 496, 1994 WL 120026 (N.Y. 1994).

Opinion

DECISION AND ORDER

ROBERT JOHN HALL, Bankruptcy Judge.

RELEVANT FACTS AND LEGAL DISCUSSION

Before the Court 1 is a motion by Plaintiff for an order authorizing amendment of her Adversary Proceeding complaint to add an additional claim for relief. Plaintiff seeks to have the added claim relate back to the original pleading so that it is not time-barred. See Fed.R.Civ.P. 15(c) (1994) (made applicable by Federal Rule of Bankruptcy Procedure 7015 (1994) (discussed below)).

Plaintiff commenced the Adversary Proceeding by the filing of a complaint with the Court on January 21,1992. Pursuant to her Adversary Proceeding, Plaintiff seeks a judgment determining that certain debts owed by Debtor, her former husband, are non-dis-chargeable as being in the nature of alimony, support or maintenance, or for having been incurred through fraud. See 11 U.S.C. § 523(a)(2), (5) (1994). The last date to file complaints requesting a determination of the dischargeability of debts was January 24, 1992.

Approximately five months after filing her complaint, Plaintiff filed the instant motion, pursuant to which she seeks leave of the Court to amend her complaint to add a new claim for relief. By the added claim Plaintiff seeks judgment determining that another debt owed her by Debtor is non-dischargea-ble. This debt stems from Debtor’s use of a credit card upon which both Plaintiff and Debtor were liable. Debtor has not disputed Plaintiffs allegation that the debts incurred through the use of the credit card derive exclusively from his own use. Plaintiff alleges that the debt is non-dischargeable because it arises from a clause in the parties’ separation agreement which provides that Debtor will pay all of Plaintiff’s debts (typically referred to as a “hold harmless” clause).

Debtor opposes the relief requested on three grounds. Debtor first contends that the claim should not be added since the debt itself is fully dischargeable in any event because it was not incurred through fraud, nor is it a debt in the nature of alimony, support or maintenance. This argument addresses the underlying merits of whether the claim sought to be added will be determined to be dischargeable, but does not address the instant issue, which is whether Plaintiff should be given leave to amend her complaint to add the claim (and more importantly, as discussed below, whether the claim can relate back to the original pleading). For that reason this objection fails.

Debtor secondly argues that Plaintiff has no standing to add the claim because (a) her liability is only contingent upon Debtor’s failure to satisfy the credit card debt, and (b) she was not listed in Debtor’s petition as a creditor with this claim, so she may not seek to have it determined non-dischargeable. These contentions are not valid. Debtor’s filing for bankruptcy relief and subsequent discharge is the quintessential form of failure to satisfy a debt. Plaintiff has even been served with a complaint by the issuer of the credit card for the debt incurred through Debtor’s use of it. Therefore, whatever contingency Debtor has alleged has arisen and Plaintiff is indeed hable.

As to Plaintiffs standing to file a complaint to determine the dischargeability of this debt, there exists no real question. It is not disputed that Debtor and Plaintiff are jointly hable for the debts incurred through use of the credit card. Debtor acknowledges that only he is actually responsible for ah debts incurred through use of the card. Debtor was granted a discharge, by order dated March 12, 1992, of all dischargeable debts including the debt incurred by his use of the credit card. Plaintiff now has a claim against Debtor for indemnification. Plain *378 tiffs claim, though contingent until the earlier of Debtor’s discharge or failure to pay the credit card debt, arose before Debtor’s petition for bankruptcy relief pursuant to the credit card agreement. Plaintiff is accordingly a creditor as defined in the Bankruptcy Code. 11 U.S.C. § 101(10)(A) (1994). “[A]ny creditor may file a complaint to obtain a determination of the dischargeability of any debt.” Fed.R.Bankr.P. 4007(a) (1994). For these reasons, Plaintiff has standing to seek amendment of her Adversary Proceeding to include a claim for relief regarding the credit card debt.

Debtor finally argues that a dis-chargeability complaint may not be amended, after the deadline for the filing of such complaint, to add a claim for relief which requests determination that a certain debt is non-dischargeable where the creditor knew of such debt, knew of the debtor’s bankruptcy filing and where such debt could have been included in the original complaint. This argument focuses upon Plaintiffs inability to have her new claim for relief be deemed timely because it does not relate back to the date of her complaint. We thus look to whether the amended claim relates back.

Rule 15(c) of the Federal Rules of Civil Procedure, made applicable by Rule 7015 of the Federal Rules of Bankruptcy Procedure, governs relation back of amended pleadings; it provides:

An amendment of a pleading relates back to the date of the original pleading when ... the claim or defense asserted in the amended pleading arose out of the conduct, transaction, or occurrence set forth or attempted to be set forth in the original pleading....

Fed.R.Civ.P. 15(c)(2) (1994) (made applicable by Fed.R.Bankr.P. 7015 (1994)).

We examine whether the claim asserted in the amended pleading arose out of the conduct, transaction or occurrence set forth in Plaintiffs original pleading (that is, the complaint).

In her complaint, Plaintiff alleges that two debts owed by Debtor are non-dischargeable pursuant to their separation agreement: One debt allegedly constitutes non-dischargeable maintenance and support; another is a debt concerning a boat loan. Plaintiff seeks to amend her complaint to add a request for a determination of the dischargeability of Debtor’s obligation to Plaintiff for his use of a certain credit card(s). This added claim is based upon the same set of circumstances, conduct and theory which grounds Plaintiffs original pleading: The obligation is non-dis-chargeable since it derives from the parties’ separation agreement.

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Cite This Page — Counsel Stack

Bluebook (online)
165 B.R. 376, 1994 Bankr. LEXIS 496, 1994 WL 120026, Counsel Stack Legal Research, https://law.counselstack.com/opinion/koppel-v-koppel-in-re-koppel-nyeb-1994.