Roest v. Roest (In re Roest)

569 B.R. 277
CourtUnited States Bankruptcy Court, W.D. Michigan
DecidedJune 14, 2017
DocketCase No. DK 16-02246; Adversary Pro. No. 16-80311
StatusPublished
Cited by1 cases

This text of 569 B.R. 277 (Roest v. Roest (In re Roest)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, W.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Roest v. Roest (In re Roest), 569 B.R. 277 (Mich. 2017).

Opinion

MEMORANDUM OF DECISION & ORDER

PRESENT: HONORABLE SCOTT W. DALES, Chief United States Bankruptcy Judge

I. INTRODUCTION

Nancy Vander Roest (the “Plaintiff’) sued her former husband, Jerry Lee Van-der Roest (the “Defendant”), to obtain an order declaring that her obligations under their prepetition divorce decree are not in the nature of support, and therefore dis-chargeable in her chapter 13 case. She also seeks an order awarding damages for his post-petition efforts to collect the debt, which she contends he pursued willfully and in violation of the automatic stay.

After the close of discovery, the Plaintiff filed a motion for partial summary judgment (the “Motion,” ECF No. 18) on the declaratory aspects of her complaint, leaving the question of damages for another day. After two extensions, the pro se Defendant filed a response (the “Response,” ECF No. 24). The court has reviewed the Motion and the Response, and has determined that it may resolve the Motion without additional oral arguments.

For the following reasons, the court will grant the Motion.

II. JURISDICTION

The United States District Court for the Western District of Michigan has jurisdiction over the Plaintiffs chapter 13 bankruptcy case, and has referred the case to the United States Bankruptcy Court. See 28 U.S.C. §§ 1334(a) and 157(a); W.D. Mich. L. Civ. R. 83.1(a). Proceedings governing the automatic stay and the discharge of particular debts fall within the court’s core jurisdiction, where the court’s authority is at its height. Moreover, the parties have consented to the court’s entry [280]*280of final judgment. See Pretrial Order dated January 25, 2017 at p. 1; Wellness Int’l Network, Ltd. v. Sharif, — U.S. -, 135 act. 1932, 1939, 191 L.Ed.2d 911 (2015).

Although the court has authority to enter final judgment, today’s order, which postpones a ruling on the stay violation and damages questions, is interlocutory under the single judgment rule applicable in federal court. See Fed. R. Civ. P. 54(b).

III. ANALYSIS

A court should grant a motion for summary judgment only if it is satisfied that there is no genuine factual issue warranting a trial on the merits, and that the moving party is entitled to judgment as a matter of law. See Fed. R. Civ. P. 56(c) (made applicable to this adversary proceeding by Fed. R. Bankr. P, 7056), The moving party bears the initial burden on the motion to show the absence of factual disputes and entitlement to judgment under applicable law. In reviewing a summary judgment motion, the court is mindful of where applicable law places the burden of proof. If the court is satisfied that there are no factual disputes warranting trial, the court must consider whether the moving party is entitled to relief as a matter of law.

In disputes involving the dis-chargeability of particular debts, the creditor bears the burden of bringing his claim within the exception to discharge by a preponderance of the evidence, even where, as here, the, debtor filed the complaint seeking the determination. Hart v. Molino (In re Molino), 225 B.R. 904, 907 (6th Cir. BAP 1998), Although the decision is affected by the applicable state domestic relations laws, determining whether an obligation is in the nature of support under the Bankruptcy Code is a federal question. Long v. Calhoun (In re Calhoun), 715 F.2d 1103, 1107 (6th Cir.1983) (citations omitted)).

Here, the Plaintiff has supported the Motion by including copies of the Judgment Of Divorce dated June 17, 2013 (the “JOD,” Exh. 1) and the Order re: Implementation of Judgment dated December 18, 2014 (the “Implementing Order,” Exh. 2), and has made various legal arguments. Against this showing, the Defendant has submitted only his unsworn brief arguing that “Judge Bell’s decision was made to ensure fairness and equal justice,” and that “[i]t. is important this Bankruptcy Court read Judge Bell’s final comments regarding this court case at the issuing of his final order on June 17, 2013.” See Response at p. 2. His unsworn statements also purport to show that the Plaintiff is financially able to meet her obligations to the Defendant, and that he will suffer greater financial hardship unless his claim against his ex-wife is treated as support, particularly given his report of fire damage at the “farm house.” Id. He also complains that the Plaintiff “failed to provide all of the information requested by the defendant at the March 29, 2017 deposition.” Id. at l.1

The Sixth Circuit’s decision in Sorah v. Sorah (In re Sorah), 163 F.3d 397 (6th Cir.1998), instructs a bankruptcy court to consider traditional state law indi-cia that are consistent with support obligations. These include, but are not limited to:

a. a label such as alimony, support, or maintenance in the decree or agreement,
[281]*281b. a direct payment to the former spouse, as opposed to the assumption of a third-party debt, and
c. payments that are contingent upon such events as death, remarriage, or eligibility for Social Security benefits.”

Sorah, 163 F.3d at 401.

Here, the Plaintiff contends, with good reason, that the JOD and the Implementing Order reveal the true nature of her debt as a property settlement obligation, rather than a “domestic support obligation,” notwithstanding a provision within the JOD that purports to transform the debt from dischargeable to non-dis-chargeable upon the occurrence of the Plaintiffs default. The court agrees with the Plaintiffs construction of these documents, and with her view that the purported transformation is unenforceable .under federal law. See Calhoun, 715 F.2d at 1107 (federal law controls).

For example, as originally framed, the JOD provides that neither party is entitled to alimony, “except as otherwise provided herein.” JOD at p. 2. As is customary, the JOD provided for the division of specified marital debts, including the home equity line of credit (“HELOC”) secured by the Galesburg real estate and awarded the property to the Defendant under the heading “Property Settlement in Lieu of Dower.” Id. at pp. 4-6. The JOD’s terms governing property settlement and allocation of debt require each of the former spouses to hold the other harmless for assumed debts. See, e.g., JOD at pp. 3, 5, 6.

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Cite This Page — Counsel Stack

Bluebook (online)
569 B.R. 277, Counsel Stack Legal Research, https://law.counselstack.com/opinion/roest-v-roest-in-re-roest-miwb-2017.