Moore v. Couture

CourtDistrict Court, D. Montana
DecidedMay 27, 2022
Docket2:21-cv-00002
StatusUnknown

This text of Moore v. Couture (Moore v. Couture) is published on Counsel Stack Legal Research, covering District Court, D. Montana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Moore v. Couture, (D. Mont. 2022).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MONTANA BUTTE DIVISION In re:

CV-21-02-BU-BMM ALAN J. COUTURE, Debtor. Chapter 7 Case No. 12-61434-7

Adversary Proceeding No. 13-00019

CRYSTAL MOORE,

Plaintiff/Appellant. ORDER vs.

ALAN J. COUTURE,

Defendant/Appellee.

INTRODUCTION The United States Bankruptcy Court for the District of Montana (“Montana Bankruptcy Court”) issued a Memorandum of Decision and Order in the Adversary Proceeding (Case No. 13-00019-BPH) on December 4, 2020. (Docs. 1-4 & 1-5). Appellant Crystal Moore (“Moore”) has appealed the decision from the Montana Bankruptcy Court pursuant to 28 U.S.C. § 158(a)(1) and Fed. R. Bankr. P. 8003(a)(1). The Court held a hearing on the matter on December 12, 2021. BACKGROUND Appellant Moore and Appellee Alan Couture (“Couture”) ended their

marriage by a Decree of Dissolution of Marriage (“Decree”) on September 23, 2002, in Hancock County Circuit Court, Indiana. (Doc. 7 at 10). The Decree made Couture responsible for alimony, child support, mortgage payments, and payments for a marital tort. Id. The Decree specified that “payment shall not be dischargeable

in bankruptcy.” Id. Couture filed for Chapter 7 bankruptcy in the United States Bankruptcy Court, Northern District of Indiana (“Indiana Bankruptcy Court”), on August 31,

2004. Id. at 11. The petition listed Moore as a creditor. Id. Moore and Couture planned to enter into a Reaffirmation Agreement in which both agreed to reaffirm the entire debt associated with the Decree. Id. at 12. Both appeared pro se for a

hearing to determine the approval of the Reaffirmation Agreement. Id. at 13. The Indiana Bankruptcy Court denied approval of the Reaffirmation Agreement based on its belief that the Reaffirmation Agreement proved unnecessary as the debts Couture owed to Moore were nondischargeable. Id. The

Indiana Bankruptcy Court failed to advise Moore, however, that she needed to file a separate dischargeability complaint in order to preserve her rights to collect the marital tort judgment owed by Couture. Id. Moore failed to file a dischargeability

complaint. Id. The Indiana Bankruptcy Court granted a discharge. Id. Couture continued to make payments to Moore on the marital tort judgment after the discharge had been granted. Id.

Couture filed a second Chapter 7 bankruptcy in the United States Bankruptcy Court for the District of Montana on September 4, 2012. Id. Couture listed Moore as an unsecured creditor with a priority claim. Id. at 14. Moore filed

an Adversary Proceeding on May 30, 2013, in an attempt to preserve the debts that Couture owed to her pursuant to the Decree. Id. The Montana Bankruptcy Court declared the unpaid debt nondischargeable under the Decree in January 2014. Id. Couture reopened the Montana Chapter 7 case and Adversary Proceeding on

August 1, 2017, this time with counsel. Id. at 15. Couture claimed that the Indiana bankruptcy case in 2004 had discharged the marital tort debt owed to Moore under the Decree. Id. Couture filed a Motion to Vacate Order Pursuant to Rule 60

seeking to vacate the December 2014 decision and to declare the unpaid debts under the Decree discharged and unenforceable. Id. The Montana Bankruptcy Court initially asked the parties to return to the Hancock County Circuit Court, Indiana to calculate the amounts that Couture paid to Moore under the Decree. Id.

at 16. Moore argued in Hancock County Circuit Court that res judicata barred the re-litigation of the occurrence of a marital tort. Id. The Hancock County Circuit

Court ruled against Moore. Id. The Indiana Court of Appeals reversed, however, and agreed with Moore’s res judicata argument and rendered judgment in Moore’s favor that the marital tort remained nondischargeable. Id.

The Montana Bankruptcy Court granted Couture’s Motion to Vacate Order Pursuant to Rule 60 on December 4, 2020. Id. The Montana Bankruptcy Court vacated the previous 2014 Montana Bankruptcy Court decision that had deemed

the Decree debts nondischargeable. Id. The Montana Bankruptcy Court determined that the marital tort debt owed to Moore under the Decree had been discharged in the 2004 proceeding before the Indiana Bankruptcy Court. Id. ISSUES ON APPEAL

1. Whether the Montana Bankruptcy Court erred when it reversed and set aside its previous Memorandum of Decision and Judgment dated January 27, 2014 (Docs. 6-7, 6-8), and declared that Couture’s 2004 Indiana bankruptcy had

discharged his obligations to Moore under the domestic Decree entered in Hancock County Circuit Court. 2. Whether the Montana Bankruptcy Court erred when it reopened this Adversary Proceeding (Doc. 6-11), and granted Couture’s “Motion to Vacate

Order Pursuant to Rule 60” (Doc. 6-12), that was filed on October 21, 2017. 3. Whether Couture remains judicially estopped from asking the Montana Bankruptcy Court to declare that his obligations to Moore under Indiana Decree

were discharged in Couture’s Indiana bankruptcy. 4. Whether the issue of the dischargeability of Couture’s debt to Moore under the Indiana Decree previously has been decided, and is barred by res

judicata. 5. Whether it is inequitable to declare that Couture’s obligations to Moore under the Indiana Decree have been discharged.

6. Whether any ambiguity of the discharge order entered by the Indiana Bankruptcy Court in Couture’s Indiana bankruptcy should be decided by the Indiana Bankruptcy Court. STANDARD OF REVIEW

A district court, when sitting as a court of appeals, reviews de novo a bankruptcy court’s conclusions of law. Mano–Y & M, Ltd. v. Field (In re The Mortgage Store, Inc), 773 F.3d 990, 994 (9th Cir. 2014). A court of appeals

reviews a bankruptcy court’s findings of fact for clear error. Id. Motions for relief from judgement pursuant to Fed. R. Civ. P. 60(b) and Fed. R. Bankr. P. 9024 “will not be reversed absent an abuse of discretion.” Casey v. Albertson’s Inc., 362 F.3d 1254, 1257 (9th Cir. 2004). A court abuses its discretion if “it does not apply the

correct law or if it rests its decision on a clearly erroneous finding of material fact.” Id. (citing Bateman v. U.S. Postal Serv., 231 F.3d 1220, 1223 (9th Cir. 2000). ANALYSIS I. Whether the Montana Bankruptcy Court erred when it vacated its 2014 judgment and determined that Couture’s debts under the Decree had been discharged in the 2004 Indiana bankruptcy. Moore argues first that Couture incorrectly claimed in both his motion to open the adversary proceeding and his Motion to Vacate Order under Rule 60, that the Indiana Bankruptcy Court “denied the reaffirmation of Ms. Moore’s debt and

deemed the debt unenforceable, effectively discharging the debt.” (Doc. 6-9 at ¶ 7, Doc. 6-12 at 3). Moore contends that the Montana Bankruptcy Court also mischaracterized the reaffirmation hearing when it made a similar statement in its

Memorandum of Decision. The Montana Bankruptcy Court noted that the Indiana Bankruptcy Court “expressed skepticism” about whether the debt should be discharged. (Doc. 7 at 19).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
Moore v. Couture, Counsel Stack Legal Research, https://law.counselstack.com/opinion/moore-v-couture-mtd-2022.