Schwartz v. Schwartz (Schwartz)

409 B.R. 240, 2008 Bankr. LEXIS 2205, 2008 WL 5582733
CourtBankruptcy Appellate Panel of the First Circuit
DecidedAugust 26, 2008
DocketBAP NO. MB 08-001. Bankruptcy No. 06-13696 WCH. Adversary No. 07-01016 WCH
StatusPublished
Cited by21 cases

This text of 409 B.R. 240 (Schwartz v. Schwartz (Schwartz)) is published on Counsel Stack Legal Research, covering Bankruptcy Appellate Panel of the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schwartz v. Schwartz (Schwartz), 409 B.R. 240, 2008 Bankr. LEXIS 2205, 2008 WL 5582733 (bap1 2008).

Opinion

INTRODUCTION

TESTER, Bankruptcy Appellate Panel Judge.

The appellee, Steven Shea Schwartz (“Appellee”), is a Chapter 7 debtor. In *243 January, 2007, Michal Saidon Schwartz (the “Appellant”) commenced an adversary proceeding against the Appellee seeking a determination that (1) the Appellee is liable to her under the terms of a Form I-864 “Affidavit of Support Under § 213A of the Immigration and Nationality Act,” and (2) the alleged liability is nondischargeable as a domestic support obligation under the U.S. Bankruptcy Code. On October 18, 2007, the bankruptcy court entered an order dismissing the adversary complaint for lack of subject matter jurisdiction under the Rooker-Feldman doctrine. 1 The bankruptcy court also denied the Appellant’s subsequent motions for reconsideration. The Appellant appealed. For the reasons discussed below, we AFFIRM.

BACKGROUND

The relevant facts are not in dispute. The Appellant, who was a citizen of Israel, and the Appellee were married in 1996. In order to obtain permanent resident status for the Appellant, the Appellee filed a Form 1-864 Affidavit of Support (“Affidavit of Support”) with the Immigration and Naturalization Service. 2 The Affidavit of Support provided:

I submit this affidavit in consideration of the sponsored immigrant(s) not being found inadmissible to the United States under section 212(a)(4)(C) ... and to enable the sponsored immigrant(s) to overcome this ground of inadmissibility. I agree to provide the sponsored immigrants) whatever support is necessary to maintain the sponsored immigrant(s) at an income that is at least 125 percent of the Federal poverty guidelines. I understand that my obligation will continue until my death or the sponsored immigrant(s) have become U.S. citizens, can be credited with 40 quarters of work, depart the United States permanently, or die.

The Appellant was granted permanent resident status in June, 2001. None of the terminating conditions set forth in the Affidavit of Support have occurred.

On January 6, 2003, the Appellee filed for divorce from the Appellant in the Oklahoma District Court for Payne County (“Oklahoma State Court”). On December 18, 2003, the Oklahoma State Court issued a Decree of Divorce allocating the assets and liabilities of the parties. The Decree of Divorce specifically provided that:

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that [Ap-pellee’s] obligation to support the [Appellant] shall terminate as of 12:00 noon on June 1, 2004, and from and after such time and date [Appellee] shall have no further obligation to provide any support whatsoever to [Appellant].

The Decree of Divorce did not specifically identify or address the Affidavit of Support or the status of the Appellee’s obligations thereunder.

In June, 2004, the Appellant brought suit against the Appellee in the United States District Court for the Western District of Oklahoma seeking specific performance of the Affidavit of Support and damages in the amount of past due support. The Appellee moved to dismiss on the grounds that the Appellant had not yet received any means-tested public benefits, the Affidavit of Support was not a legally binding contract, and the Decree of Divorce terminated his obligations under the Affidavit of Support as of June 1, 2004. The district court denied the motion to *244 dismiss, concluding that the Appellant could maintain the action regardless of whether she had obtained any benefits, the Affidavit of Support was an enforceable contract, and the Decree of Divorce did not automatically terminate the Appellee’s obligations under the Affidavit of Support. Thereafter, the Appellant filed a motion for partial summary judgment. The Ap-pellee did not file a response; instead, he filed his Chapter 7 petition in October, 2006. Due to the bankruptcy filing, the district court proceeding was “administratively closed” without prejudice to the rights of the parties to reopen the proceeding for good cause after termination of the bankruptcy proceeding.

In January, 2007, the Appellant commenced an adversary proceeding seeking a determination that the Appellee is liable to her pursuant to the Affidavit of Support, and that the alleged liability is nondis-chargeable as a domestic support obligation under the terms of the Bankruptcy Code. 3 The Appellant moved for partial summary judgment on the issue of the Appellee’s liability under the Affidavit of Support, with damages to be determined at a later hearing.

The Appellee opposed the summary judgment motion and requested that judgment be entered in his favor. In his opposition, the Appellee argued that his support obligations to the Appellant terminated on June 1, 2004, in accordance with the terms of the Decree of Divorce, and that the Appellant’s claims against him are barred by the doctrine of “claims preclusion” because they had been “conclusively adjudicated by the State Court.” He also argued that any liability under the Affidavit of Support would not constitute a domestic support obligation under 11 U.S.C. § 101(14A) and, therefore, would be dischargeable.

The bankruptcy court held a hearing on August 15, 2007, and took the matter under advisement. On October 18, 2007, the bankruptcy court entered an order dismissing the adversary proceeding for lack of subject matter jurisdiction under the Rooker-Feldman doctrine (“Dismissal Order”). In its Memorandum Decision, the bankruptcy court stated:

In the facts before me, it is clear that the Affidavit was submitted to the divorce court. The Decree of Divorce does not specify the reasoning behind its support order. The Plaintiff here seeks an order declaring the Affidavit to be a domestic support obligation and any claims arising thereunder to be nondis-chargeable. She is, in essence, seeking review of the Decree of Divorce. Under the Rooker-Feldman doctrine, I lack jurisdiction to review the Decree of Divorce.

Thereafter, the Appellant filed multiple motions, including a motion for reconsideration on October 29, 2007, and an amended motion for reconsideration on November 27, 2007. The Appellee opposed both motions. On December 5, 2007, the bankruptcy court issued an endorsement order denying the motion for reconsideration for failure to bring forth “newly discovered evidence.” The bankruptcy court also issued an endorsement order denying the amended motion for reconsideration as “moot.”

*245 The Appellant filed a Notice of Appeal from “the judgment, order, or decree of the bankruptcy judge ... entered in this proceeding ... on the 18th day of October, 2007, and 5th of December, 2007.” Because there are multiple orders dated December 5, 2007 (and “entered” on December 6, 2007), the Appellee questions which orders are properly part of this appeal.

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Bluebook (online)
409 B.R. 240, 2008 Bankr. LEXIS 2205, 2008 WL 5582733, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schwartz-v-schwartz-schwartz-bap1-2008.