Lepre v. Milton (In re Milton)

595 B.R. 699
CourtUnited States Bankruptcy Court, W.D. Pennsylvania
DecidedFebruary 4, 2019
DocketBankruptcy No. 16-20747-CMB; Adv. Proc. No. 16-2127-CMB
StatusPublished
Cited by6 cases

This text of 595 B.R. 699 (Lepre v. Milton (In re Milton)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, W.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lepre v. Milton (In re Milton), 595 B.R. 699 (Pa. 2019).

Opinion

Carlota M. Böhm, Chief United States Bankruptcy Judge

The matter before the Court is the First Amended Adversary Complaint ("Amended Complaint," Doc. No. 67) filed by Gerald S. Lepre, Jr., against Erica Lynn Milton ("Debtor"). Within the Amended Complaint, Mr. Lepre objects to the Debtor's discharge pursuant to 11 U.S.C. § 727(a)(4)(A) and alternatively asserts that the debt owed to him is nondischargeable pursuant to 11 U.S.C. § 523(a)(2)(A), (a)(4), and (a)(6).1 For the reasons set forth herein, this Court finds that Mr. Lepre failed to meet his burden under the applicable statutes.

Background and Procedural History

Debtor filed a petition for relief under Chapter 7 of the Bankruptcy Code on March 3, 2016. Mr. Lepre commenced the instant adversary proceeding on June 17, 2016, alleging that Debtor denied him the opportunity to retrieve his property from the residence they formerly shared and seeking various forms of relief. Although it appeared the parties might reach a resolution through mediation, mediation ultimately proved unsuccessful. Mr. Lepre's Amended Complaint followed.

In response to the filing of the Amended Complaint, Debtor filed a Motion to Request a More Specific Pleading Under Bankruptcy Rule 7009(b) and Motion to Dismiss Amended Complaint Under Bankruptcy Rule 7012(b) . By Memorandum Order dated June 15, 2017, said motion was granted in part and denied in part. Count II was dismissed; however, the Amended Complaint was to proceed as to Count I, an objection to Debtor's discharge pursuant to 11 U.S.C. § 727(a)(4)(A), as well as Counts III, IV, and V, objecting to the dischargeability of the debt owed to Mr. Lepre pursuant to 11 U.S.C. § 523(a)(2)(A), (a)(4), and (a)(6). Debtor filed an Answer on July 3, 2017.

Preceding trial, the parties filed individual pretrial statements (Doc. Nos. 182 and 200) as well as a Joint Statement of Stipulated Facts ("Stipulated Facts," Doc. No. 193). Following a number of discovery disputes, motions to compel, and other delays, trial was held on September 21, 2018. In addition to testimony from the Debtor and Mr. Lepre, the Court heard the testimony of Jessica Weiss, Mr. Lepre's fiancé, and Carol Milton, the Debtor's mother. While the Court found the testimony of Ms. Weiss and Ms. Carol Milton generally credible, the most relevant testimony was that of the Debtor and Mr. Lepre. Following the one-day trial, the parties filed their proposed findings of fact and conclusions of law (Doc. Nos. 2192 and 224). The matter is now ripe for decision.

*704Findings of Fact

In 2001, Debtor purchased her home located at 130 Clara Street, Millvale, Pennsylvania (the "Clara Street Property"), and only her name is on the deed. See Transcript of 9/21/18 ("Transcript"), Doc. No. 213, at 112, 148, 150-51. In November of 2009, Mr. Lepre moved into the Clara Street Property. See Stipulated Facts, at ¶ 1. At some point, the parties were engaged to be married, and they lived together as a family unit for several years. See Transcript, at 102, 136. As is common with parties in a serious relationship, they shared the costs of some expenses, took vacations together, exchanged gifts, and even opened a joint bank account. Transcript, at 112-13, 132, 153-54. During that time, Mr. Lepre took it upon himself to replace the home's gravel driveway with a concrete driveway and constructed a shed on the property, primarily for the storage of his motorcycles and some other items. Transcript, at 34, 102-03, 135, 148. Eventually, however, the relationship became volatile. See Transcript, at 40-41, 141-146. According to the Debtor's credible testimony, Mr. Lepre threatened her with lawsuits, alleging he would take everything from her including her home, and she could not get rid of him. Transcript, at 142. Ultimately, tensions rose to a breaking point.

Debtor credibly testified that, following a heated argument with Mr. Lepre, her stepfather offered to take Mr. Lepre and his belongings back to Scranton, Pennsylvania, where Mr. Lepre formerly resided. Transcript, at 144-45. Mr. Lepre refused the offer. Transcript, at 145.3 Debtor and her daughter left the Clara Street Property on February 28, 2015, to stay with Debtor's parents. See Stipulated Facts, at ¶ 2; Transcript, at 145. Debtor credibly testified that, during this time, she was providing Mr. Lepre with the opportunity to find another place to live. Transcript, at 145. However, based upon what Debtor perceived to be threatening behavior, on March 9, 2015, Debtor filed a Petition for Protection from Abuse ("PFA") against Mr. Lepre. See Transcript, at 145; Stipulated Facts, ¶ 3. Thereafter, a Protection from Abuse Order was entered against Mr. Lepre. See Stipulated Facts, ¶¶ 4, 7, 9.

Between February 28, 2015, and March 15, 2015, Mr. Lepre had exclusive possession of the Clara Street Property. See Stipulated Facts ¶ 8; Transcript, at 97.4 According to Mr. Lepre, when he was served with the order entered on the PFA, he was forced to leave the Clara Street Property with only a motorcycle, a bookbag full of clothing, and a dog. Testimony, at 97-98, 133. While the filing of the PFA may have been unexpected, the credible evidence establishes that Mr. Lepre knew he was to make other living arrangements and move out of the Clara Street Property during Debtor's absence from her home. Transcript, at 120, 145. In fact, it was the purpose for her absence. Whether Mr. Lepre took any action in furtherance of *705making such arrangements cannot be determined from the credible evidence. However, based upon the testimony, the Court will not rule out the possibility that Mr. Lepre may have acted in accordance with his best interests by removing items from the Clara Street Property during that time.

With respect to the PFA, a negotiated consent order ("PFA Order") was entered requiring the parties to coordinate with respect to Mr. Lepre's retrieval of his belongings from the Clara Street Property.5 Pursuant to the order, Mr. Lepre was permitted to contact Debtor solely for the purpose of making arrangements to retrieve his property. Transcript, at 119, 146. Pending the coordination of a date for retrieval, the Debtor removed the lock Mr. Lepre had placed on the shed he constructed at the property and began to move his remaining possessions from inside the home to that location. See Transcript, at 34-35. While Mr.

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595 B.R. 699, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lepre-v-milton-in-re-milton-pawb-2019.