Rice v. Rice (In Re Rice)

94 B.R. 617, 1988 Bankr. LEXIS 2219, 18 Bankr. Ct. Dec. (CRR) 1024, 1988 WL 142133
CourtUnited States Bankruptcy Court, W.D. Missouri
DecidedDecember 30, 1988
Docket19-40371
StatusPublished
Cited by13 cases

This text of 94 B.R. 617 (Rice v. Rice (In Re Rice)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, W.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rice v. Rice (In Re Rice), 94 B.R. 617, 1988 Bankr. LEXIS 2219, 18 Bankr. Ct. Dec. (CRR) 1024, 1988 WL 142133 (Mo. 1988).

Opinion

*618 MEMORANDUM OPINION

FRANK W. KOGER, Bankruptcy Judge.

Conquest, War, Famine, Death — these the Book of Revelations tells us are the Four Horsemen of Apocalypse, no matter what that later apostle known to the sporting gentry as Grantland Rice wrote some nineteen centuries later. Yet in the arena of consumer bankruptcy, neither prophet was right. Here and now those dread specters are: Divorce, Illness, Unemployment, and Overspending. These now are the harbingers of economic doom that spell the end of the “good life” for so many of the economic refugees that seek relief in this “Court of Last Resort”. But even here the tendrils of Divorce linger on and judges of these courts are called upon to decide whether the remaining shards of the former physical and spiritual union are “in lieu of maintenance” or “in the nature of property settlement” and thus correspondingly nondischargeable or dischargeable as the case may be.

This case illustrates some of the sadness, the bitterness and the economic desolation visited upon such parties, for they were and are the victims of both Divorce and Illness.

Debtor and his ex-wife separated in the summer of 1986, and were divorced on May 15,1988. To the tragedy of the breakup of the family and the customary tug of war over the four minor children, the family assets, the family home and who got what share of the accumulated possessions of a decade plus of sharing the good and bad, was added not only the overtones of a serious illness of the ex-wife, but the grim reality that what could support one household could not support two. Debtor filed his petition for relief under Chapter 7 on August 12, 1988, less than three months after the decree of dissolution was entered.

Debtor listed his ex-wife as a creditor and sought to discharge all of his obligations to her as well as his obligations to all of the joint creditors whose payment the dissolution decree imposed upon him. The ex-wife timely filed her complaint to have declared certain items nondischargeable on the grounds that the decreed obligation to pay the household bills and medical expenses was in lieu of maintenance, that her award of attorney fees was in lieu of maintenance and that either a $4,500.00 lien against the residence awarded to the ex-wife should be declared a nondischargeable equitable lien or determined to be nondis-chargeable as being an award in lieu of maintenance.

At the hearing, the usual diametrically opposed view of the plaintiff and the defendant was proffered. Although couched in differing terms, the former testified that she believed the awards were in lieu of maintenance; the latter testified that he believed the awards were ordered to balance out the division of marital property. Also introduced was the decree of dissolution which, of course, was silent as to the intent of the parties as to what said awards represented or were intended to effect. Consequently, this Opinion, which can only result from the evidence introduced, is reminiscent of an edifice built on a fragile and imperfect foundation.

Taking the three areas of contest in order, the Court first considers the issue of the debtor’s required payment of all household bills and medical expenses. The Court finds that this portion of the decree was not in lieu of maintenance but was intended to balance the division of marital property. The Court comes to this conclusion because of the placement of that particular clause in the decree, as well as considering the amount of marital property each party received. Further the state court awarded specific spousal maintenance. In other words, not only did the debtor get most of the tangible assets, he also got the attendant bills to balance the scale. Further this particular part of the order appears to fall within the division of property, not the maintenance section of the decree. That portion of the decree ordering debtor to pay all marital debts is, therefore, ordered DISCHARGEABLE.

Turning next to the question of the ex-wife’s attorney fees, both parties have cited cases from this district supporting *619 their respective positions. The Court itself has considered a number of cases cited by neither party. In some cases attorney fees have been declared nondischargeable. In other cases they have been declared dis-chargeable. If there appears to be no rhyme or reason to the decisions, that well may be attributable to the position of the Missouri state courts. For example prior to 1978, Missouri appellate courts had generally ruled that an award of attorney fees and suit money was a function of alimony and support. Knebel v. Knebel, 189 S.W.2d 464 (Mo.Ct.App.1945). However, in Dyche v. Dyche, 570 S.W.2d 293 (Mo.1978) (en banc) the Missouri Supreme Court ruled that an award of attorney’s fees under the then new Dissolution of Marriage Act was not made for the support of any person. That decision which did not engage any bankruptcy concept led to a fascinating dichotomy as illustrated by the following two cases. In In re Moyer, 13 B.R. 436 (W.D.Mo.1981), the federal district court followed the Dyche case and reversed the referee’s determination of nondischarge-ability of attorney fees. Within two months of that decision, the Missouri Court of Appeals, Western Division, in Southern v. Southern, 614 S.W.2d 313 (Mo.App.1981), ruled directly opposite, distinguishing the Dyche case primarily on the excellent analysis and opinion issued by the Honorable Dennis J. Stewart in In re Evans, 2 B.R. 85 (Bkrtcy.W.D.Mo.1979). Further, the Eighth Circuit has spoken to the issue in In re Williams, 703 F.2d 1055 (8th Cir.1983). There the Court in discussing the issue of attorney fees, said:

“Whether a particular debt is a support obligation or part of a property settlement is a question of federal bankruptcy law, not state law”, l.c. 1056.

Further, the Court said:

“In short, underta1 ngs by one spouse to pay the other’s d-bts, including a debt to a lawyer for fees, can be “support” for bankruptcy purposes ... Whether in any given case such obligations are in fact for “support” and therefore not dis-chargeable in bankruptcy, is a question of fact to be decided by the Bankruptcy Court as trier of fact in light of all the facts and circumstances relevant to the intention of the parties. A finding of fact on such a question may be set aside by the District Court or by us only if clearly erroneous”, l.c. 1057.

This Court after considerable cogitation of these and other conflicting federal and state decisions reluctantly comes to the conclusion that there is no automatic yardstick to apply to the issue of attorney fees, and that this and all other bankruptcy courts (in Missouri at least) are final arbiters of domestic relations cases. Thus, it is the responsibility of this Court to weigh all of the factors presented by the parties to try and determine the intentions of the two spouses, their respective counsel, and the state court judge at the moment the decree was entered.

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Cite This Page — Counsel Stack

Bluebook (online)
94 B.R. 617, 1988 Bankr. LEXIS 2219, 18 Bankr. Ct. Dec. (CRR) 1024, 1988 WL 142133, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rice-v-rice-in-re-rice-mowb-1988.