Pope v. Wagner (In Re Pope)

209 B.R. 1015, 1997 Bankr. LEXIS 1363
CourtUnited States Bankruptcy Court, N.D. Georgia
DecidedJune 16, 1997
Docket15-65653
StatusPublished
Cited by11 cases

This text of 209 B.R. 1015 (Pope v. Wagner (In Re Pope)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pope v. Wagner (In Re Pope), 209 B.R. 1015, 1997 Bankr. LEXIS 1363 (Ga. 1997).

Opinion

ORDER

W. HOMER DRAKE, Jr., Bankruptcy Judge.

Currently before the Court in these proceedings is the Motion for Summary Judgment of Rebecca R. Wagner (hereinafter “the Creditor”). The Creditor’s motion arises from a “Complaint to Determine Discharge-ability of Debt and Complaint for Contempt,” filed by William R. Pope (hereinafter “the Debtor”) in the course of his Chapter 7 bankruptcy case. As such, this matter falls within the subject matter jurisdiction of the Court, see 28 U.S.C. § 157(b)(2)(A), (I) & (0), and it shall be disposed of in accordance with the Findings of Fact and Conclusions of Law that follow.

Findings of Fact

On May 6, 1994, the Debtor filed his present bankruptcy case under Chapter 13 of the Bankruptcy Code. Prior to his case’s conversion to a Chapter 7 liquidation proceeding, the Debtor and Creditor were divorced in the Superior Court of Coweta County, Georgia, on or about December 21, 1994. The decree of divorce ordered the Debtor to pay $2,539.10 to the creditor in ten monthly installments of $133.91, and thereafter to pay sixteen monthly installments of $75.00. As to these remittances, the decree noted “[wjhile said payments are support payments made to or for the benefit of the Plaintiff, these payments on behalf of the Plaintiff, as between the parties, shall not be considered income to the Plaintiff nor deductible by the Defendant.” Pope v. Pope, No. 94-V-508 at 3 (Sup.Ct. Coweta County filed Dec. 21, 1994).

The Debtor listed the above-mentioned $2,539.10 debt to his former spouse as part of his Chapter 7 bankruptcy schedules, identifying the same as a “property settlement” obligation. Finding the character of the obligation owed her then to be in question, the Creditor returned to the state court, where she sought and obtained a determination that the $2,539.10 debt constituted an item of nondischargeable support pursuant to 11 U.S.C. § 523(a)(5). 1 As part of that determination, the divorce court also found specifically that the Creditor’s act of returning to state court had not violated bankruptcy’s automatic stay, but instead came within the stay exception provided by Code section 362(b)(2)(A)(ii). See 11 U.S.C. § 362(b)(2)(A)(ii) (“[t]he filing of a petition ... does not operate as a stay____of the commencement or continuation of an action or proceeding for ... the establishment or modification of an order for alimony, maintenance, or support”).

*1018 In the wake of the state court’s ruling, the Debtor since has returned to this Court, filing his present “Complaint to Determine Dischargeability of Debt and Complaint for Contempt.” 2 In support of this action, the Debtor acknowledges that the state courts have concurrent jurisdiction to determine dischargeability of marital obligations under 11 U.S.C. § 523(a)(5). Nevertheless, he contends that such state, court actions may only be commenced subject to the parameters of bankruptcy’s automatic stay. Thus, since the Creditor did not obtain stay relief prior to returning to state court, the Debtor alleges that the judgment rendered therein is void, and that the dischargeability of the underlying debt remains a subject of dispute. Further, the Debtor asserts that the Court should sanction the Creditor’s circumvention of bankruptcy court processes, as a willful violation of the automatic stay. Viewing the Debtor’s arguments as hinged upon legal issues already settled by the divorce court, the Creditor has filed the instant Motion for Summary Judgment.

Conclusions of Law

1. The Summary Judgment Standard.

In accordance with Federal Rule of Bankruptcy Procedure 7056, which incorporates Federal Rule of Civil Procedure 56, this Court will grant a motion for summary judgment only in the absence of any material issue of fact, so as to make the movant entitled to judgment as a matter of law. See Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 2552, 91 L.Ed.2d 265 (1986). The movant has the burden to establish that no such factual issue exists, id. at 324, 106 S.Ct. at 2553, and the Court will read the opposing party’s pleadings liberally. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 249, 106 S.Ct. 2505, 2510, 91 L.Ed.2d 202 (1986). As a drastic remedy, summary judgment only will be granted when there is no room for controversy. United States v. Earhart (In re Earhart), 68 B.R. 14, 15 (Bankr.N.D.Iowa 1986); Sell v. Heath (In re Heath), 60 B.R. 338, 339 (Bankr.D.Colo.1986).

II. The Impact of Georgia State Court Judgments Upon Subsequent Nondischargeability Proceedings in Bankruptcy.

State court judgments “shall have the same full faith and credit in every court within the United States ... as they have by law or usage in the courts of such State ... from which they are taken.” 28 U.S.C. § 1738. This requirement of “full faith and credit” applies in dischargeability proceedings, just as it would in any other court action. See Marrese v. American Academy of Orthopaedic Surgeons, 470 U.S. 373, 381, 105 S.Ct. 1327, 1332, 84 L.Ed.2d 274 (1985); Kremer v. Chem. Constr. Corp., 456 U.S. 461, 48-82, 102 S.Ct. 1883, 1897-98, 72 L.Ed.2d 262 (1982) (“it has long been established that section 1738 does not allow federal courts to employ their own rules of res judicata in determining the effect of state court judgments”); see also Nourbakhsh v. Gayden (In re Nourbakhsh), 162 B.R. 841, 843 (9th Cir. BAP 1994); Wright v. McIntyre (In re Wright), 57 B.R. 961, 963 (Bankr.N.D.Ga. 1986) (Drake, B.J.) (the effect of a State Superior Court judgment “is governed by the principles of full faith and credit set forth in 28 U.S.C. § 1738”). Thus, when certain issues relative to a nondischargeability complaint may have already been decided by a Georgia state court judgment, bankruptcy courts must look to state law to determine the preclusive effect of that preceding judgment. Aerojet-General Corp. v. Askew, 511 F.2d 710, 721 n. 11 (5th Cir.), reh’g denied,

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Bluebook (online)
209 B.R. 1015, 1997 Bankr. LEXIS 1363, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pope-v-wagner-in-re-pope-ganb-1997.