Schwartz v. Schwartz (In Re Schwartz)

217 B.R. 533, 12 Tex.Bankr.Ct.Rep. 154, 1998 Bankr. LEXIS 172
CourtUnited States Bankruptcy Court, E.D. Texas
DecidedJanuary 12, 1998
Docket19-60016
StatusPublished
Cited by2 cases

This text of 217 B.R. 533 (Schwartz v. Schwartz (In Re Schwartz)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, E.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schwartz v. Schwartz (In Re Schwartz), 217 B.R. 533, 12 Tex.Bankr.Ct.Rep. 154, 1998 Bankr. LEXIS 172 (Tex. 1998).

Opinion

OPINION

DONALD R. SHARP, Chief Judge.

This adversary proceeding came before the Court pursuant to regular setting. Both parties were present and the matter was taken up and tried. This opinion constitutes the Court’s findings of fact and conclusions of law to the extent required by Federal Rules of Bankruptcy Procedure 7052 and disposes of all issues before the Court.

FACTUAL AND PROCEDURAL BACKGROUND

This matter was set for trial on June 12, 1997, and prior to the trial, Plaintiff filed a Motion for Summary Judgment. In accordance with the Court’s rules and usual practice, there was not time to hear and dispose of the Motion for Summary Judgment prior to the trial date so the Motion for Summary Judgment was taken under advisement and the trial proceeded. This opinion constitutes the. Court’s rulings on the Motion for Summary Judgment and the trial on the merits and completes this adversary proceeding.

The defendant and debtor, Alan Schwartz (“Debtor”), filed a chapter 7 bankruptcy proceeding on July 12, 1996. Debtor is the natural father of Keith Schwartz (“Plaintiff’). Pursuant to a Judgment of Divorce granted on March 24, 1990, Debtor was awarded custody of Plaintiff and was ordered to provide medical insurance until Plaintiff’s emancipation, which was on September 15,1994.

Plaintiff lived with the Debtor until he was evicted on or about April 11, 1992, when he began to reside with Steve and Carol Kirshner. Carol Kirshner is the sister of the Debtor. She is also the custodian of certain funds left in her care for the benefit of Plaintiff from the estate of Plaintiff’s paternal grandmother. The Kirshners expended sums of money to provide for Plaintiff’s food, clothing, shelter, educational expenses and medical attention.

As a result of the expenses they incurred, Steve and Carol Kirshner sued Debtor in the 199th District Court of Collin County, Texas, for the cost of necessaries they provided to Plaintiff. The Kirshners were awarded a judgment against the Debtor for “neeessar *535 ies” as that term is used in section 4.02 of the Texas Family Code. The Judgment was signed on March 7, 1995, in the amount of $25,788.25 plus post-judgment interest and costs. Of the Judgment, $13,057.49 was for clothing, food, shelter, medical care and educational expenses that were reasonably and necessarily incurred. The remaining amount, $12,730.76, was for reasonable and necessary attorney’s fees incurred by the Kirshners for the benefit of Plaintiff.

After the Debtor filed bankruptcy, Plaintiff filed this Complaint Objecting to Discharge and to Determine priority of claim. Plaintiff claims that Debtor’s debt to him is nondischargeable pursuant to 11 U.S.C. § 523(a)(2)(A) and (B); (4); (5); (6); and (15)(B).

DISCUSSION

Plaintiff filed a Motion for Summary Judgment, or in the alternative for Partial Summary Judgment, seeking a judgment that (1) the expenses made for his maintenance and support were to be paid by the Debtor, and (2) he is entitled to a repayment for funds improperly taken from a trust established for his benefit; and that both are nondischargeable.

Summary Judgment is appropriate when, viewing all the evidence in light most favorable to the non-movant, “there is no genuine issue of material fact arid the moving party is entitled to judgment as a matter of law.” Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 2552, 91 L.Ed.2d 265 (1986); In re McCafferty, 96 F.3d 192 (7th Cir.1996). The burden of establishing the nonexistence of a “genuine issue” is on the party moving for summary judgment. Id. at 330, 106 S.Ct. at 2556. Any inferences to be drawn from the underlying facts must be viewed in the light most favorable to the party opposing the motion. Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S.Ct. 1348, 1356, 89 L.Ed.2d 538 (1986).

A Maintenance and Support

11 U.S.C. § 523(a)(5) provides that “a discharge under 727 ... of this title does not discharge an individual debtor from any debt to a spouse, former spouse, or child of the debtor for alimony to, maintenance for, or support of such spouse or child in connection with a separation agreement, a divorce decree or other order of a court of record, determination in accordance with state or territorial law by a governmental unit, or property settlement assigned to another entity, voluntarily, by operation of law, or otherwise ...”

Section 523(a)(5) enumerates a clear congressional policy to ensure that genuine support obligations will not be discharged. This policy has been seen as a derogation of the general bankruptcy policy of strictly construing exceptions to discharge. In re Jones, 9 F.3d 878 (10th Cir.1993). However, a party seeking to show nondisehargeability of debt pursuant to this section still has the burden of proving by a preponderance of the evidence that this debt is nondischargeable. The three requirements to establish nondischargeability contained in § 523(a)(5) are:

1. The debt must be to a spouse, former spouse or child of the debtor;
2. The debt must be for alimony or support of such spouse or child; and
3. The debt must have been the result of a separation agreement, divorce decree or other order of a court of record, determination made in accordance with state or territorial law by a governmental unit, or property settlement agreement.

Plaintiff alleges that the Judgment awarded to the Kirshners against the Debtor is nondischargeable pursuant to § 523(a)(5) and prevailing jurisprudence. The basis for Plaintiff’s claim is two-fold. First, Plaintiff claims that as a parent Debtor is obligated to pay for Plaintiffs maintenance and support. Second, Plaintiff argues that based on the state court Judgment, Debtor must pay the Kirshners for the money spent on behalf of Plaintiff’s maintenance and support. The Court’s analysis begins with the second and third requirement of the statute.

In Debtor’s Response to the Motion for Summary Judgment, he admits that the funds expended by the Kirshners were to support the Plaintiff herein. However, Debt- *536 or argues that it is not child support in the traditional sense because the Kirshners did not have legal custody of Plaintiff and therefore, no obligation to support the Plaintiff.

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Related

Chance v. White (In Re White)
265 B.R. 547 (N.D. Texas, 2001)
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265 B.R. 746 (N.D. Ohio, 2001)

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Bluebook (online)
217 B.R. 533, 12 Tex.Bankr.Ct.Rep. 154, 1998 Bankr. LEXIS 172, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schwartz-v-schwartz-in-re-schwartz-txeb-1998.