Lawrence v. Goldberg (In Re Lawrence)

244 B.R. 868, 2000 WL 190251
CourtDistrict Court, S.D. Florida
DecidedFebruary 16, 2000
Docket99-2113-CIV.; Bankruptcy 97-14687-BKC-AJC
StatusPublished
Cited by1 cases

This text of 244 B.R. 868 (Lawrence v. Goldberg (In Re Lawrence)) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lawrence v. Goldberg (In Re Lawrence), 244 B.R. 868, 2000 WL 190251 (S.D. Fla. 2000).

Opinion

MEMORANDUM OPINION AND ORDER

HIGHSMITH, District Judge.

THIS CAUSE came before the Court upon Debtor Stephan Jay Lawrence’s appeal from an order issued on February 2, 1999 by United States Bankruptcy Judge Thomas S. Utschig, sitting by designation in the Southern District of Florida. Therein, Judge Utschig granted Appel-lee/Chapter 7 Trustee Alan L. Goldberg’s motion for partial summary judgment on the trustee’s objection to Lawrence’s claimed exemption of pension funds. Judge Utschig also granted the trustee’s motion for turnover of pension funds and for an accounting; and denied the debtor’s motion for summary judgment. In his appeal, Lawrence argues that the trustee’s objection was untimely, hence should have been neither considered nor sustained by Judge Utschig. Although the trustee filed his objection within the extension of time granted by United States Bankruptcy Judge A. Jay Cristol in an order dated October 22, 1997, Lawrence argues that Judge Cristol’s order was itself untimely under a strict reading of the applicable Bankruptcy Rule, namely Fed.R.Bankr.P. 4003(b).

*870 Having carefully reviewed the record and the parties’ briefs and having heard the argument of counsel, the Court has determined that the time limitations of Fed.R.Bankr.P. 4003(b) must be strictly construed. Hence, the Court concludes that both Judge Cristol’s order and the trustee’s objection were untimely. Accordingly, the Court vacates Judge Ut-schig’s order in all respects and remands this matter to the Bankruptcy Court for the entry of judgment overruling the trustee’s objection to the debtor’s claimed exemption of pension funds.

PROCEDURAL BACKGROUND

On June 12, 1997, Debtor/Appellant Stephan Jay Lawrence filed a voluntary bankruptcy petition under Chapter 7 of the Bankruptcy Code, docketed as Case No. 97-14687-BKC-AJC. A meeting of creditors was initially set for July 17, 1997, but it was continued to August 25, 1997. In his schedule of exemptions, Lawrence claimed the funds in a pension plan created by his solely-owned business, S.L. Computer Services, Inc. The pension funds were valued at approximately $450,000.

On September 12, 1997, Appellee/Chap-ter 7 Trustee Alan L. Goldberg filed a motion requesting an extension of time within which to file objections to the debt- or’s claimed exemptions. Goldberg’s motion also sought an extension of time to file complaints objecting to the debtor’s discharge. Thereafter, on September 16, 1997, the Clerk of the Bankruptcy Court issued a notice of hearing on the trustee’s motions, to be held on October 14, 1997. Pursuant to the instructions contained in the notice, Goldberg’s counsel was required to serve a copy of the notice on all required parties and to file the original notice with a completed certificate of service. On September 17, 1997, Goldberg filed the notice and certificate of service in the Bankruptcy Court record.

After hearing the arguments of counsel, Judge Cristol granted the trustee a six-month extension to file objections both to claimed exemptions and to discharge. This ruling was memorialized in an order extending both deadlines to April 14, 1998, issued on October 22,1997. After issuance of the extension order, Lawrence moved for reconsideration, arguing, inter alia, that it was untimely as to the period for filing objections to claimed exemptions. By order dated February 10, 1998, Judge Cristol denied Lawrence’s motion for reconsideration. 1

On April 13, 1998, Goldberg filed his objection to Lawrence’s claimed exemption of the pension funds and a motion to turn over funds and for an accounting. On July 10, 1998, Lawrence responded to the objection asserting, inter alia, that the objection was untimely. Thereafter, the parties filed cross-motions for summary judgment with regard to the objection, which resulted in Judge Utschig’s February 2, 1999 ruling, appealed herein. 2

*871 Lawrence’s appeal of Judge Utschig’s February 2, 1999 order was filed in the Bankruptcy Court on February 10, 1999. The notice of appeal and the record were transmitted to this Court on May 10, 1999. Prior to that date, on April 14, 1999, Lawrence had filed a motion for stay pending appeal. Said motion was docketed in this Court as Case No. 99-1051-CIV-UNGA-RO-BENAGES. In an order dated May 26, 1999, United States District Judge Ursula Ungaro-Benages denied the motion for stay. See Order Denying Debtor’s Motion for Stay Pending Appeal, D.E. # 4 in Case No. 99-1051-CIV-UNGARO-BE-NAGES. Due to the pendency of Case No. 99-1051 at the time of receipt of the transmittal notice and record, the Clerk of this Court docketed those materials in Case No. 99-1051. Thereafter, on July 80, 1999, the appeal was re-docketed as Case No. 99-2113-CIV-HIGHSMITH. On August 5, 1999, noting that the delay resulting from the re-docketing had rendered the briefing periods prescribed in Fed.R.Bankr.P. 8009 inapplicable, the undersigned set a superseding briefing schedule. Once the briefing was completed, the Court heard oral argument on November 23,1999.

ISSUE ON APPEAL

In his appeal of Judge Utschig’s February 2, 1999 order, Lawrence does not address the substantive aspects of the ruling, which sustained Goldberg’s objection to Lawrence’s claimed exemption of pension funds. Thus, the singular issue before the Court is the timeliness, vel non, of Goldberg’s objection to the exemption. Resolution of that question involves construction and application of Fed. R.Bankr.P. 4003(b), which provides in pertinent part:

The trustee or any creditor may file objections to the list of property claimed as exempt within 30 days after the conclusion of the meeting of creditors held pursuant to Rule 2003(a) or the filing of any amendment to the list or supplemental schedules, unless, within such period, further time is granted by the court.

A plain reading of Rule 4003(b) vis-a-vis the chronology in this case makes it clear that no objections were filed and no extension was granted within the thirty-day period contemplated by the rule. To recapitulate the procedural events, the meeting of creditors was concluded on August 25, 1997. Hence, the thirty-day period prescribed by Rule 4003(b) for the trustee to file objections to the debtor’s claimed exemptions expired on September 24, 1997, “unless, within such period,” the Bankruptcy Court granted an extension. Prior to the expiration of the 30-day period, on September 12, 1997, the trustee moved for extensions of time to file objections both to the debtor’s claimed exemptions and to his discharge. A hearing on the motions was scheduled for October 14, 1997, pursuant to the notice issued by the Clerk of the Bankruptcy Court on September 16, 1997 and served by the trustee on September 17, 1997.

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Bluebook (online)
244 B.R. 868, 2000 WL 190251, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lawrence-v-goldberg-in-re-lawrence-flsd-2000.