Rush v. Rush (In Re Rush)

237 B.R. 473, 1999 Bankr. LEXIS 916, 1999 WL 619017
CourtUnited States Bankruptcy Appellate Panel for the Eighth Circuit
DecidedAugust 4, 1999
DocketBAP 99-6022 EM
StatusPublished
Cited by8 cases

This text of 237 B.R. 473 (Rush v. Rush (In Re Rush)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Appellate Panel for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rush v. Rush (In Re Rush), 237 B.R. 473, 1999 Bankr. LEXIS 916, 1999 WL 619017 (bap8 1999).

Opinion

KRESSEL, Bankruptcy Judge.

The debtor appeals from the judgment of the bankruptcy court 1 determining that certain debts to his ex-wife were excepted from his discharge. Because we think the bankruptcy court applied the correct legal standard and its finding of fact were not clearly erroneous, we affirm.

BACKGROUND

Alfred and Yvonne Rush were divorced pursuant to a judgment of the St. Charles County, Missouri, Circuit Court, dated June 15, 1998. Among other things, the divorce decree awarded Yvonne one-half of the marital portion of Alfred’s Prairie Farms Dairy Thrift Incentive Plan, awarded the marital residence to Alfred, subject to a judgment lien in favor of Yvonne in the amount of $10,327.00, and required Alfred to pay indebtedness to St. Joseph’s Health Center, GM Visa, Providian Visa Gold, and First USA MasterCard, totaling approximately $23,876.00. Alfred was awarded custody of the couple’s child and Yvonne was ordered to pay Alfred $184.00 per month in child support.

On August 27, 1998, Alfred filed a chapter 7 case and on November 30, 1998, Yvonne filed a complaint to determine the dischargeability of certain debts under 11 U.S.C. § 523(a)(15). The bankruptcy court held a trial on January 25, 1999, and on February 17, 1999, entered a judgment dated February 10, 1999, in Yvonne’s favor, determining the enumerated debts to be nondischargeable pursuant to § 523(a)(15).

On February 25, 1999, Alfred filed a motion “to Set Aside and/or Reopen,” asking for relief from the judgment pursuant to Rules 59 and 60 of the Federal Rules of Civil Procedure. 2 By an order dated March 10, 1999, and entered on March 11, 1999, the bankruptcy court denied Alfred’s motion.

Alfred then timely filed a Notice of Appeal, appealing only from the March 10, 1999, order denying his postjudgment motion, but did not appeal from the February 17,1999, judgment.

DISCUSSION

Yvonne first raises two procedural issues which she urges as grounds for dismissal of-this appeal.

Timeliness of Appeal

She first argues that Alfred’s post-judgment motion was untimely. She focuses on the date of the order, which was February 10, 1999. However, Rule 59(b) specifically provides that a motion for relief under Rule 59 shall be filed “no later than ten days after entry of the judgment.” (Emphasis added.) Rule 60 provides only that a motion under that rule be made within a reasonable time or for certain stated reasons, not more than one year “after the judgment, order, or proceeding was entered or taken.” As we have previously noted, “a document is entered, when the clerk makes the notation on the official public record, the docket, of the activity or submission of the particular document.” U.S. v. Henry Bros. Partnership (In re Henry Bros. Partnership), 214 B.R. 192, 195 (8th Cir. BAP 1997) (citations omitted). Since the motion was filed *475 within ten days of entry of the court’s judgment, it was timely.

Scope of Appeal

Yvonne also argues that because Alfred appealed only from the order denying Alfred’s postjudgment motion, that we are without jurisdiction to review the merits of the original judgment. While the failure to specify that an appeal is being taken from the underlying judgment is a careless practice that we do not wish to encourage, an appeal from a Rule 59 order brings up for review all nonmoot orders entered by the bankruptcy court. Barger v. Hayes County Non-Stock Co-op. (In re Barger), 219 B.R. 238, 245 (8th Cir. BAP 1998). See also, Foman v. Davis, 371 U.S. 178, 181, 83 S.Ct. 227, 9 L.Ed.2d 222 (1962) (It is too late in the day and entirely contrary to the spirit of the Federal Rules of Civil Procedure for decision on the merits to be avoided on the basis of such mere technicalities.)

We therefore reach the merits of the bankruptcy court’s judgment.

§ 523(a) (15)

The Bankruptcy Code contains two exceptions to discharge for obligations by a debtor to a spouse, former spouse, or child. Section 523(a)(5) has been a part of the Bankruptcy Code from its inception in 1979, and of the Bankruptcy Act well before that. It provides an exception to discharge for debts in the nature of “alimony, maintenance, or support.” In 1994, Congress added § 523(a)(15) which created a new exception to discharge for a debt “not of the kind described in paragraph (5) that is incurred by the debtor in the course of a divorce or separation.... ” Between them, §§ 523(a)(5) and (15) would cover all debts owed by a debtor to a spouse, former spouse, or child resulting from a divorce or dissolution, except that § 523(a)(15) contains two opportunities for the debtor to avoid the operation of § 523(a)(15) by showing either:

(A) the debtor does not have the ability to pay such debt from income or property of the debtor not reasonably necessary to be expended for the maintenance or support of the debtor or a dependent of the debtor and, if the debt- or is engaged in a business, for the payment of expenditures necessary for the continuation, preservation, and operation of such business; or
(B) discharging such debt would result in a benefit to the debtor that outweighs the detrimental consequences to a spouse, former spouse, or child of the debtor.

11 U.S.C. § 523(a)(15)(A) and (B).

We have previously held that the burden of proof, both in terms of going forward with the evidence and the burden of persuasion is on the creditor, here Yvonne, to show only that the debt owed to her by the debtor, Alfred T. Rush, Jr., is a debt that arises from a divorce, other than one in the nature of alimony, maintenance, or support. The burden of going forward with the evidence and the burden of persuasion then shifts to the debtor, here Alfred, to prove either of the defenses. Moeder v. Moeder, 220 B.R. 52, 56 (8th Cir. BAP 1998).

In its original judgment and its postjudgment order, the bankruptcy court correctly allocated this burden between the parties. In its judgment, the bankruptcy court held that “the debtor bears the burden of proof to establish that the debt sought to be discharged falls within the exception of either subparagraph (A) or (B) of 11 U.S.C. § 523(a)(15).” It held that the “debtor failed to plead or establish at trial, facts necessary to defeat the Plaintiffs prima facie case.”

In its March 10, 1999, postjudgment order, the bankruptcy court held that the plaintiff had met her burden of showing that her debt was of the kind described in § 523(a)(15).

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Cite This Page — Counsel Stack

Bluebook (online)
237 B.R. 473, 1999 Bankr. LEXIS 916, 1999 WL 619017, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rush-v-rush-in-re-rush-bap8-1999.