Shearer v. Shearer (In Re Shearer)

124 B.R. 862, 1990 Bankr. LEXIS 2833, 1990 WL 272089
CourtUnited States Bankruptcy Court, N.D. Florida
DecidedDecember 18, 1990
Docket15-40344
StatusPublished
Cited by5 cases

This text of 124 B.R. 862 (Shearer v. Shearer (In Re Shearer)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, N.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shearer v. Shearer (In Re Shearer), 124 B.R. 862, 1990 Bankr. LEXIS 2833, 1990 WL 272089 (Fla. 1990).

Opinion

ORDER ON PLAINTIFF’S MOTION FOR ASSESSMENT OF ATTORNEY’S FEES

LEWIS M. KILLIAN, Jr., Bankruptcy Judge.

This matter is before the Court on Gail Ann Shearer’s (“Plaintiff”) motion for assessment of attorney’s fees. Plaintiff seeks to have this Court award her attorney’s fees for fees arising in this adversary proceeding to determine the dischargeability of debts. Having considered the argument of counsel and for the reasons set forth below, Plaintiff’s motion for assessment of attorney’s fees is denied.

The parties were married on September 10, 1972. During their marriage they had four children. The wife filed a petition for dissolution of marriage in 1988. On November 23, 1988 a Final Judgment Dissolving Marriage was entered in the Circuit Court in and for the Eighth Judicial Circuit, Alachua County, Florida. Also, on November 23, 1988, the parties executed a Marital Settlement Agreement. The husband agreed to be responsible for all joint debts and obligations then in existence, except of the mortgage on the marital home and the debt attributable to a washer and dryer. In addition, the husband was responsible for one-half of the wife’s attorney’s fees.

At the time of the dissolution, the husband was an Associate Professor at the University of Florida College of Veterinary Medicine and was earning an annual income of $52,800.00. The wife was employed at a private school as a part-time teacher, with an annual salary of approximately $8,000.

On or about March 23, 1989, Jan Keith Shearer (“Defendant” or “Debtor”) filed a voluntary petition for protection under Chapter 7 of the Bankruptcy Code. On September 29, 1989, the plaintiff filed this adversary proceeding to determine the dis-chargeability of the defendant's debt owed to the plaintiff. On July 13, 1990 this Court entered summary judgment in favor of Plaintiff, finding that Defendant’s obligation to indemnify Plaintiff for any and all liability for joint debts of the parties which existed prior to the entry of the Final Judgment Dissolving Marriage was in the nature of support or alimony, and was nondischargeable pursuant to § 523(a)(5) of the Bankruptcy Code. The Court also reserved jurisdiction to rule on the issue of whether Plaintiff was entitled *863 to an award of attorney’s fees and costs in connection with this adversary proceeding.

Plaintiffs argument is that she is entitled to a reasonable attorney’s fee incurred during the adversary proceeding to determine the dischargeability of the debt owed to her. She asserts that the majority of bankruptcy courts follow the general rule that attorney’s fees awarded to a party in a marital dissolution action is so tied in with the obligation of support that it is in the nature of support or alimony and excepted from discharge. In the Matter of Romano, 27 B.R. 36 (Bkrtcy.M.D.Fla.1983). Plaintiff asks this court to broaden that rule to include the attorney’s fees incurred to determine the dischargeability of the debt. She asserts that it is in the Bankruptcy Court’s discretion to award attorney’s fees for an attorney who establishes the nondischargeability of a debt under § 523. In re Galpin, 66 B.R. 127 (N.D.Ga.1985). Plaintiff reasons that the determination of the dischargeability of the debt is also so intertwined with the obligation of support that it is in the nature of support or alimony and excepted from discharge. She cites to three cases in support of this position, In re Galpin, supra, In re Bell, 61 B.R. 171 (Bkrtcy.S.D.Tex.1986), In the Matter ofScannell, 60 B.R. 562 (Bkrtcy.W.D.Wis.1986), and In re Teter, 14 B.R. 434 (Bkrtcy.N.D.Tex.1981).

Additionally, Plaintiff argues, Florida Statute § 61.16 gives the court, after considering the financial resources of both parties, discretion to award attorney’s fees for the enforcement of the dissolution decree. Since the dischargeability action was an action to enforce the dissolution decree, Fla.Stat. § 61.16 gives the court authority to award attorney’s fees.

Plaintiff further asserts that the Bankruptcy Court is the proper forum to seek attorney’s fees incurred during this adversary proceeding. She cites to Florida Federal Savings and Loan Association v. Sanchez, 553 So.2d 1254 (3rd DCA Fla.1990), which held that “[i]t was for the bankruptcy court to determine whether appellant was entitled to attorney fees incurred in the bankruptcy proceeding and, if so, what a reasonable fee should have been.”

Plaintiff makes a well reasoned argument. However, the argument ignores the Bankruptcy Court’s limited authority to award attorney’s fees. Although, the cases cited hold that the Bankruptcy Court does have authority to award attorney’s fees, these case have been criticized in other cases. The Matter of Myers, 61 B.R. 891 (Bkrtcy.N.D.Ga.1986), In re Barbre, 91 B.R. 846 (Bkrtcy.S.D.Ill.1988). In fact, the court in Myers declined to follow Galpin. In that case, the defendant also requested an award of attorney’s fees arising in connection with the adversary proceeding to determine the dischargeability of debts. The Court noted that § 523(d) is the only subsection of § 523 for which attorneys’ fees are statutorily provided. That provision allows attorney’s fees only in the context of consumer debt under § 523(a)(2). Therefore, the court found it was without authority to award attorney’s fees.

Myers went on to cite the Eleventh Circuit case, In re Harrell, 754 F.2d 902 (11th Cir.1985), which held that the bankruptcy courts have no role in assessing the amount of support owed to an ex-spouse. Following the rationale of Harrell, the Myers court found that Congress intended each party in an adversary proceeding to bear its own costs of litigation except in cases involving consumer debt. A finding to the contrary would “be intruding on an area in which Congress clearly had not intended the Court to delve.” Myers, supra, at 896. The court also found that it is in the province of the state court to determine the amount of support owed to an ex-spouse.

In Harrell, the debtor had an obligation to pay his ex-spouse $ 100 per month during her life or until she remarried. He was also required to pay $100 per month to his son until his son became wholly self-supporting, married, or attained the age of 21. Debtor also agreed to pay his son’s educational expenses through college and postgraduate school, with his child support payments reduced by one-half during periods he paid educational expenses. Debtor fell *864 in arrears on these debts and eventually filed bankruptcy. In his bankruptcy, he filed a complaint to determine the dis-chargeability of his domestic debts.

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Cite This Page — Counsel Stack

Bluebook (online)
124 B.R. 862, 1990 Bankr. LEXIS 2833, 1990 WL 272089, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shearer-v-shearer-in-re-shearer-flnb-1990.