Property Management & Investments, Inc. v. Johnson, Blakely, Pope, Bokor & Ruppel, P.A. (In re Property Management & Investments, Inc.)

67 B.R. 889, 1986 Bankr. LEXIS 4804
CourtUnited States Bankruptcy Court, M.D. Florida
DecidedDecember 11, 1986
DocketBankruptcy No. 81-2307; Adv. No. 86-0397
StatusPublished
Cited by2 cases

This text of 67 B.R. 889 (Property Management & Investments, Inc. v. Johnson, Blakely, Pope, Bokor & Ruppel, P.A. (In re Property Management & Investments, Inc.)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Property Management & Investments, Inc. v. Johnson, Blakely, Pope, Bokor & Ruppel, P.A. (In re Property Management & Investments, Inc.), 67 B.R. 889, 1986 Bankr. LEXIS 4804 (Fla. 1986).

Opinion

ORDER ON RENEWED MOTION FOR TEMPORARY RESTRAINING ORDER AND MOTION FOR CONTEMPT

ALEXANDER L. PASKAY, Chief Judge.

THIS IS a Chapter 7 liquidation case, and the matter under consideration is a Renewed Motion for a Temporary Restraining Order filed by special counsel for the estate, Mr. Jawdet Rubaii. Mr. Rubaii also filed a Motion for Contempt against the defendants named in the above-captioned adversary proceeding. At the duly scheduled and noticed hearing this Court heard argument of counsel and considered the record which reveals the following facts relevant and germane to the two motions under consideration.

During the course of the administration of the estate of PMI the Trustee filed an application and sought an authorization to employ special counsel to prosecute on behalf of the estate a damage claim against the lawfirm of Johnson, Blakeley, Pope, Bokor & Ruppel, P.A. The suit to be filed was based on a claim of malpractice by the lawfirm which represented the Debtor pri- or to the commencement of this case. The application of the Trustee was granted, and Mr. Jawdett Rubaii was authorized to be employed as special counsel for the estate and he filed a Complaint in the Circuit Court in and for Pinellas County on behalf of the estate against the Defendants named in the above-captioned adversary proceeding. In due course the matter was tried in state court, and the jury returned an adverse verdict to PMI and the Court entered a final judgment in favor of the Defendants and based on the verdict and dismissed the Complaint with prejudice.

After the entry of the judgment, the Defendants filed a motion in the Circuit Court and sought taxation of costs. It appears that although no hearing was scheduled in the Circuit Court on the defendants’ Motion to Tax Costs at that time, on August 19, 1986, Mr. Rubaii filed a Complaint in this Court and sought an injunction prohibiting the defendants to proceed with their request to tax costs. On the same date Mr. Rubaii also filed a Motion for Temporary Restraining Order. The motion was filed in this Court, but because of absence of the undersigned, based on the alleged emergency Mr. Rubaii requested that his motion be considered by [891]*891the district court. The Honorable William Terrell Hodges, the Chief District Judge, promptly considered the motion and on September 12, 1986, entered an order and denied the Motion for Temporary Restraining Order without prejudice.

Thereafter, the Defendants requested the Circuit Court and obtained a hearing on their Motion to Tax Costs on September 15, 1986. On September 19, 1986, Mr. Rubaii on behalf of the estate filed a Notice of Appeal which challenged the order of the district court which denied his original Motion for Temporary Restraining Order. At the same date he also filed a. Motion for Leave to Appeal the September 12, 1986, order and also filed a Motion to Reconsider the September 12,1986, order. In addition, Mr. Rubaii filed a Motion in this Court on October 21, 1986, and sought to hold the defendants in contempt and an order declaring that the post cost judgment entered by the Circuit Court in the interim is void and unenforceable. The cost judgment was entered by the Circuit Court on October 27, 1986. On October 29, 1986, Mr. Rubaii filed in the Circuit Court a Motion to Reconsider and Vacate the Cost Judgment, and on October 31, 1986, filed a new Emergency Motion and sought a declaration by this Court that the cost judgment entered by the Circuit Court is void.

On November 6, 1986, Mr. Rubaii also filed a Motion, again seeking to hold the Defendants in contempt. He also sought again an order declaring the cost judgment void, just as he did earlier on October 29, 1986. Lastly, on November 6, 1986, Mr. Rubaii filed a Renewed Motion for Temporary Restraining Order, the very same motion which was denied by the district court earlier by the entry of an Order on September 12, 1986, the very same order which is currently involved in his appeal and the very same motion by which Mr. Rubaii seeks a reconsideration and rehearing on the Order of the District Court denying his final Motion for Temporary Restraining Order.

The entire thrust of all these various and sundry motions filed by Mr. Rubaii centers around one single proposition. First, Mr. Rubaii contends that the defendants violated the automatic stay imposed by § 362 of the Bankruptcy Code by proceeding with their Motion to Tax Costs in the Circuit Court, and therefore, should be cited for contempt and punished accordingly. As a corollary to this proposition Mr. Rubaii urges that the cost judgment entered by the Circuit Court on October 27, 1986, is void in any event as a matter of law because it was entered in violation of the automatic stay.

Considering first the motion which seeks an injunctive relief not only by the Prayer for Relief set forth in the original Complaint filed on August 19, 1986, but also by the several Motions for Temporary Restraining Order, it is clear that all of them are without any merit and should be denied.

First, in light of the fact that the very same matter is currently pending before the district court, it would be unseemly for this Court to enter a dispositive order on these motions. Second, based on the representation by counsel for the defendants that they definitely do not intend to proceed with execution on the cost judgment entered by the Circuit Court, there is no basis to grant a Temporary Restraining Order simply because Mr. Rubaii failed to establish an immediate and irreparable harm or injury. Third, because the contempt sought by Mr. Rubaii inextricably involves the legal validity of the cost judgment, it is appropriate to this Court to proceed first to determine whether or not the automatic stay imposed by § 362 applied in this instance and prohibited these defendants from proceeding with their Motion to Tax Costs in the state court litigation in which they were successful. This is so because if the automatic stay did not apply, the Defendants could not be found to have violated same; therefore, they could not be punished for contempt.

In support of his claims, Mr. Ru-baii relies on § 362(a)(4) of the Bankruptcy Code and contends that acts of the defendants were acts “to perfect or enforce any [892]*892lien against the property of the estate.” A Motion to Tax Costs by a successful litigant can by no stretch of the imagination be construed to be the conduct proscribed by this sub-clause of § 362(a)(4). This is so because these Defendants did not seek to impose or enforce a lien against the properties of the estate. The difficulty with the proposition urged by Mr. Rubaii is that the automatic stay designed for the protection of the estate was enacted by Congress and to prohibit an interference with the properties of the estate by creditors who attempt to enforce a claim which was a claim existed on the date of the commencement of the case and was not designed to deal with claims which arose after the commencement of the case. In re Begley v. Philadelphia Electric Co., 760 F.2d 46 (3d Cir.1985). This interpretation is consistent with the general proposition that post-petition claims are not claims in the orthodox sense and recognized and allowable against the estate only if they would qualify under § 503 to be allowed as an expense of administration.

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67 B.R. 889, 1986 Bankr. LEXIS 4804, Counsel Stack Legal Research, https://law.counselstack.com/opinion/property-management-investments-inc-v-johnson-blakely-pope-bokor-flmb-1986.