Peterson v. Wells Fargo Bank, N.A. (In re Peterson)

585 B.R. 1
CourtUnited States Bankruptcy Court, D. Connecticut
DecidedApril 19, 2018
DocketCase No.: 10–23429 (AMN); Adv. Pro. No. 17–2081 (AMN)
StatusPublished
Cited by3 cases

This text of 585 B.R. 1 (Peterson v. Wells Fargo Bank, N.A. (In re Peterson)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, D. Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Peterson v. Wells Fargo Bank, N.A. (In re Peterson), 585 B.R. 1 (Conn. 2018).

Opinion

Ann M. Nevins, United States Bankruptcy Judge

Before the court is a motion filed by the defendant Molly T. Whiton as the former Chapter 13 Standing Trustee (the "Former Trustee") seeking dismissal of counts five through nine1 of the adversary proceeding *4complaint2 ("AP Complaint") filed by the debtor-plaintiff, Alyssa S. Peterson ("Ms. Peterson") pursuant to Fed.R.Civ.P. 12(b)(6), made applicable to this adversary proceeding by Fed.R.Bankr.P. 7012(b). AP-ECF No. 13.3 In the alternative, the Former Trustee seeks summary judgment as to counts five though nine based upon the doctrine of general release. AP-ECF No. 13. For the reasons that follow, the court grants the Former Trustee's motion to dismiss counts five through nine. As the court's order granting dismissal is dispositive, the court need not reach the Former Trustee's motion for summary judgment and that request is moot.

I. JURISDICTION

This court has jurisdiction over this action pursuant to 28 U.S.C. §§ 1334(b) and 157(b), and the District Court's Order of referral of bankruptcy matters, dated September 21, 1984. This adversary proceeding is a core proceeding pursuant to 28 U.S.C. § 157(b)(2)(A). This adversary proceeding arises under Ms. Peterson's Chapter 13 case pending in this District; therefore, venue is proper in this District pursuant to 28 U.S.C. § 1409.

II. RELEVANT PROCEDURAL HISTORY

a. Ms. Peterson's Chapter 13 Bankruptcy Case

On October 5, 2010, Ms. Peterson, proceeding pro se , filed a voluntary Chapter 13 bankruptcy petition (the "Petition Date").4 ECF No. 1. From the Petition Date through August 31, 2017, Ms. Peterson's Chapter 13 bankruptcy was assigned to the Former Trustee. Approximately two and a half years after the Petition Date, on March 7, 2013, Ms. Peterson filed her Fifth Amended Chapter 13 Plan ("5th Amended Plan"). ECF No. 245.

b. Ms. Peterson's Judgment against Hannah Woldeyohannes

A brief background regarding a pre-bankruptcy judgment obtained against a third party, Hannah Woldeyohannes ("Ms. Woldeyohannes") is important to understand Ms. Peterson's 5th Amended Plan and this AP Complaint. Throughout the AP Complaint, Ms. Peterson references a judgment obtained against Ms. Woldeyohannes and acknowledges her status as a judgment creditor of Ms. Woldeyohannes. See AP Complaint, AP-ECF No. 6, ¶ 12 ("judgment proceeds from a business fraud case"), ¶ 34 ("as a judgment creditors in a Chapter 7 case"), and ¶ 35. Accordingly, this court takes judicial notice of the documents filed in Ms. Woldeyohannes's *5Chapter 7 bankruptcy case ("Woldeyohannes Case"), case number 11-20003 and in Ms. Peterson's Chapter 13 bankruptcy case, case number 10-23429.5 In January of 2011, Ms. Woldeyohannes filed a voluntary Chapter 7 bankruptcy petition. ECF No. 1 in case number 11-20003. In the Woldeyohannes Case, Ms. Peterson filed a proof of claim asserting a debt owed by Ms. Woldeyohannes of $248,117.52. POC 2-1 in case number 11-20003. As a basis for her claim, Ms. Peterson attached a copy of a judgment dated November 13, 2009 obtained against Ms. Woldeyohannes ("Woldeyohannes Judgment") in an action pending before the Connecticut Superior Court entitled Alyssa Peterson v. Hannah Woldeyohannes and bearing docket number HHD-CV-04-0834966-S. POC 2-1, P. 6 of 21. The Woldeyohannes Judgment awarded Ms. Peterson damages of $118,500.00. POC 2-1, P. 20 of 21. The Woldeyohannes Judgment was later amended to include an award of interest, bringing the total award to $195,482.96 as of November 13, 2009. POC 2-1, P. 5 of 21; See also Ms. Peterson' Schedule A, ECF No. 18 in case number 10-23429. The Woldeyohannes Judgment also determined that Ms. Woldeyohannes was the sole owner of a limited liability company named A to Zee, LLC, and prohibited Ms. Woldeyohannes from assigning her interest in A to Zee, LLC, and/or encumbering the assets owned by A to Zee, LLC. POC 2-1, P. 6 of 21.

In May of 2012, the court (Dabrowski, J.), in the Woldeyohannes Case, granted Ms. Peterson's motion seeking relief from the automatic stay to pursue collection of the Woldeyohannes Judgment.6 ECF Nos. 56 and 61 in case number 11-20003. Thereafter, in December of 2012, Ms. Peterson filed an amended motion for relief seeking permission to pursue collection of the Woldeyohannes Judgment against the assets of A to Zee, LLC. ECF No. 85 in case number 11-20003. In her amended motion, Ms. Peterson noted that subsequent to the entry of the Woldeyohannes Judgment, she commenced an action entitled Alyssa Peterson v. Carlton Hume, Hume & Associates, LLC, J. Hanson Guest, Guest & Associates, LLC, A to Zee, LLC, Mussie Russom, Sofia Woldeyohannes, Yodit Woldeyohannes, and Isaias Woldeyohannes , bearing docket number HHD-CV-11-5035394-S. See ECF No. 85 in case number 11-20003. As part of this subsequent action, Ms. Peterson obtained an order of prejudgment remedy entitling Ms. Peterson to attach the value of One Hundred Fifty-Two Thousand ($152,000.00) Dollars to the real estate owned by A to Zee, LLC. ECF No. 85 in case number 11-20003. The court (Dabrowski, J.) granted Ms. Peterson's amended motion, conditioned as follows:

ORDERED that the automatic stay of § 362(a) is modified pursuant to § 362(d) to permit [Ms. Peterson] to *6pursue recovery of her interests in [Ms. Woldeyohannes's] wholly-owned Connecticut limited liability company known as A to Zee, LLC (hereinafter, "A to Zee"), and any assets of A to Zee, including condominium property and bank accounts held under injunction by order of the Connecticut Superior Court since May 21, 2012; and
IT IS FURTHER ORDERED that so long as [Ms. Peterson's] Chapter 13 case is pending (or if said Chapter 13 case is converted to Chapter 7, so long as the Chapter 7 case remains pending) (i) any compromise or settlement agreement related to [Ms. Peterson's] attempt to recover said assets of A to Zee, shall be subject to approval of this Court upon a Motion to Approve such Settlement or Compromise, following notice and a hearing thereon in Case No. 10-23429, and (ii) any funds or other property recovered as a result of an approved settlement or compromise, or otherwise recovered, shall be immediately turned over to Molly Whiton, Chapter 13 Trustee, or to any successor Chapter 7 trustee should [Ms.

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Cite This Page — Counsel Stack

Bluebook (online)
585 B.R. 1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peterson-v-wells-fargo-bank-na-in-re-peterson-ctb-2018.