Mullally v. Carter

67 B.R. 535, 1986 U.S. Dist. LEXIS 20069
CourtDistrict Court, N.D. Illinois
DecidedSeptember 22, 1986
Docket85 C 8573
StatusPublished
Cited by7 cases

This text of 67 B.R. 535 (Mullally v. Carter) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mullally v. Carter, 67 B.R. 535, 1986 U.S. Dist. LEXIS 20069 (N.D. Ill. 1986).

Opinion

MEMORANDUM OPINION AND ORDER

ASPEN, District Judge:

This case is an appeal from the Bankruptcy Court’s grant of appellee’s motion for summary judgment. This Court has jurisdiction pursuant to 28 U.S.C. § 158(a).

Appellant/Debtor Michael J. Mullally (“Mullally”) entered into a child support agreement (“Agreement”) with Appellee Linda Carter (“Carter”) on March 14, 1978. In the Agreement, Mullally admitted paternity of Carter’s daughter Jaime Michelle Carter (“Jaime”) and agreed to pay Carter thirty dollars per week for the support of Jaime. Under the Agreement, the payments were to continue until Jaime’s death or majority, whichever occurred first. In consideration for this admission of paternity and promise to make child support payments, Carter waived her right to prosecute a paternity suit against Mullally as a result of Jaime’s birth.

Mullally never fulfilled his support obligations under the Agreement.» In 1981, Carter therefore sued Mullally to enforce the Agreement. The case was set for trial on August 18, 1983. On August 17, 1983, one day prior to trial, Mullally commenced this bankruptcy proceeding, listing Carter as an unsecured creditor. Carter filed a complaint objecting to the discharge of Mullally’s obligations to Jaime under the Agreement.

Carter and Mullally filed cross-motions for summary judgment on the issue of the *536 non-dischargeability of Mullally’s obligation under the Agreement. The bankruptcy judge entered summary judgment in favor of Carter and against Mullally, holding that because the obligation was in the nature of child support, the debt was non-dischargeable under 11 U.S.C. § 523(a)(5) (1983), amended by 11 U.S.C. § 532(a)(5) (Supp. II 1984).

Mullally now appeals the bankruptcy judge’s decision on the basis that 11 U.S.C. § 523(a)(5) (1983), amended by 11 U.S.C. § 523(a)(5) (Supp. II 1984) (hereinafter “§ 523(a)(5) (1983)”) did not except his obligation under the Agreement from discharge. For the reasons stated below, we affirm the bankruptcy judge’s entry of summary judgment in favor of Carter.

THE APPLICABLE LAW

This case is governed by Bankruptcy Code § 523(a)(5) as it read when this suit was commenced on August 17, 1983. Bankruptcy Amendments and Federal Judgeship Act, Pub.L. No. 98-353, § 553(a), 98 Stat. 333, 392 (1984). At that time, the relevant portion of 523 read as follows:

(a) A discharge under section 727, 1241 or 1328(b) of this title does not discharge an individual debtor from any debt—
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(5) to a spouse, former spouse or child of the debtor, for alimony to, maintenance for, or support of such spouse of child, in connection with a separation agreement, divorce decree, or property settlement agreement.... 1

The issue, in this case is whether a non-assigned obligation that arises out of a voluntary agreement, made in settlement of a paternity suit, in which the debtor admits paternity and agrees to make child support payments, is excepted from discharge in bankruptcy under 11 U.S.C. § 523(a)(5) (1983) of the Bankruptcy Code. Mullally argues that his obligation to Jaime under the Agreement should not be excepted from discharge because the debt is not “in connection with a separation agreement, divorce decree or property settlement agreement,” as required by the statute. He believes that a plain reading of the statute leads to the conclusion that it does not make his obligation under a child support agreement non-dischargeable because the Agreement was not made in connection with a separation agreement, divorce decree or property settlement agreement. As Jaime’s parents were never married it is clear that this Agreement could not have been made in connection with a divorce decree, separation agreement or property settlement. DuPhily v. DuPhily, 52 B.R. 971, 975 (D.Del.1985).

There is one rule of statutory construction that exceptions to discharge under the bankruptcy laws must be plainly expressed and strictly construed in favor of the debt- or. See, e.g., In Re Cross, 666 F.2d 873, 879-80 (5th Cir.1982). Mullally urges this Court to strictly construe § 523(a)(5) (1983), relying on cases where courts held that court ordered obligations which do not arise “in connection with” a separation agreement, divorce decree or property settlement agreement are not excepted from discharge under § 523(a)(5) (1983). See, e.g., In Re Marino, 29 B.R. 797 (N.D.Ind.1983); In Re Richards, 33 B.R. 56 (Bankr.D.Ore.1983), rev’d Oregon v. Richards, 45 B.R. 811 (D.Ore.1984); In Re Leach, 15 B.R. 1005 (Bankr.D.Conn.1981). For the most part, these cases concern obligations in the nature of child support owed to third parties by way of assignment. 2 This, of course, is not present in this situation.

*537 More appropriate to the instant case are cases that have held that support obligations arising out of court orders of paternity are not dischargeable in bankruptcy. Matter of Pierson, 47 B.R. 258 (Bankr.D.Neb.1985); In Re Balthazor, 36 B.R. 656 (Bankr.E.D.Wis.1984); In Re Cain, 29 B.R. 591 (Bankr.N.D.Ind.1983); see also In Re Mojica, 30 B.R. 925 (Bankr.E.D.N.Y.1983). These courts have declined a more restrictive reading of § 523(a)(5) (1983) for several reasons. First, that the specific enumerations of the “in connection” clause simply reflect Congressional commitment to except from discharge only those debts that are truly in the nature of alimony or support to a wife or child of the debtor. In Re Mojica, 30 B.R. 925, 928, 930-31. Second, they have read § 523(a)(5) (1983) to include support obligations arising out of a paternity order because of concern that a more restrictive reading of the statute could result in an unconstitutional discrimination against illegitimate children. Matter of Pierson, 47 B.R. 258, 260; In Re Balthazor, 36 B.R. 656; In Re Cain, 29 B.R. 591, 595. In fact, one court recently held that § 523(a)(5) (1983), as it read prior to its amendment in July of 1984, was unconstitutional because it created an impermissible distinction between the rights of legitimate and illegitimate children as creditors, in violation of the equal protection clause of the Fifth Amendment. DuPhily v. DuPhily, 52 B.R. 971, 975-78 (D.Del.1985).

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Bluebook (online)
67 B.R. 535, 1986 U.S. Dist. LEXIS 20069, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mullally-v-carter-ilnd-1986.