Shriver v. Tingley (In Re Shriver)

46 B.R. 626, 1985 Bankr. LEXIS 6667
CourtUnited States Bankruptcy Court, N.D. Ohio
DecidedFebruary 21, 1985
Docket19-50441
StatusPublished
Cited by16 cases

This text of 46 B.R. 626 (Shriver v. Tingley (In Re Shriver)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shriver v. Tingley (In Re Shriver), 46 B.R. 626, 1985 Bankr. LEXIS 6667 (Ohio 1985).

Opinion

OPINION AND ORDER

WALTER J. KRASNIEWSKI, Bankruptcy Judge.

This matter came on to be heard upon plaintiff’s complaint to find the defendants in violation of the automatic stay provided by 11 U.S.C. § 362, and upon his request for damages as a result of that alleged violation, as well as for trespass, conversion, breach of contract and upon the defendant’s briefs in opposition thereto. The court finds that although a technical violation of stay occurred it was without knowledge or notice to defendants and furthermore, plaintiff through his agent, consented to the repossession of the collateral. The court finds further that upon the facts and circumstances of this case an award of damages or attorney fees is not appropriate and therefore plaintiff’s complaint should be dismissed.

FACTS

The defendants James and Craig Tingley sold 28 head of cattle to the plaintiff in June of 1980 for $29,850.00. The terms of the security interest purchase agreement provided that the debt was payable in 36 monthly installments. The defendants Homer and Joy Kraner sold 21 head of cattle to the plaintiff on March 26, 1982 for the sum of $16,800.00, which according to the security interest purchase agreement signed by the parties, was payable in 36 monthly installments. The plaintiff assigned his right to payment from the company that picked up his milk (Milk Marketing, Inc.) to the defendants. The last payment received by the defendants from Milk Marketing was in June of 1982 for the milk delivered in May of 1982. The plaintiffs filed for reorganization under Chapter 11 of the United States Bankruptcy Code on July 1, 1982. Notice of the entry of an order for relief was mailed to all creditors on August 3, 1982.

Having heard on July 8, 1982 through the farmers grapevine that the plaintiff may have filed bankruptcy, the defendants went to the plaintiff’s farm to explore the rumor. When the defendants arrived they were met by the plaintiff’s hired hand, Dale Obringer, who through the course of conversation told the defendants he had been working for the plaintiff for approximately one month and that the plaintiff had gone to Missouri leaving him in charge. Mr. Obringer testified at trial that he did not inform the defendants about plaintiff’s bankruptcy because he had not been made aware of it. It appears from the facts that only the plaintiff, his father, and the attorney who filed the case knew of the Chapter 11 which was filed just prior to the plaintiff leaving for Missouri.

*628 The defendants claim their actions were not a mad dash to plaintiff’s farm to grab the collateral. Instead, they urge that due to the nature of the collateral it was important to make sure that the cattle were in good health and would be adequately cared for. Defendants’ actions substantiate that claim. They arrived at the farm in a pickup truck which is unsuitable for hauling cattle. In an effort to ascertain plaintiff’s financial condition, Craig Tingley was dispatched to visit the plaintiff’s brother in law, Dennis Stroh, who informed Mr. Ting-ley that he didn’t know anything about the plaintiff’s financial affairs. While defendants were at the farm other events took place which caused them to question the health and safety of the cattle.

Creditors began to arrive at the farm and repossess their goods. Among those were the fuel company who without Mr. Obringer’s personal promise to pay for 50 gallons of gas would have removed all of it leaving nothing to power the fork lift which was necessary to move feed supplement to the cattle. During this period of chaotic activity the defendants began an inspection of the cattle which revealed the majority of the herd was of below average quality with some requiring immediate veterinary attention.

Next to arrive on the scene was the plaintiff’s father. At some point he approached the defendants and upon learning that they were considering removing the cattle he warned them that his son was in Chapter 11 and he thought they might be in trouble if they took the cows. The plaintiff’s father did not give the defendants his son’s phone number or the name of his attorney.

In an attempt to protect the cattle and yet keep their actions within the law, the defendants called their attorney and asked him for advice. The attorney had his secretary phone the Bankruptcy Court Clerk’s Office and unfortunately for whatever reason she was told that no petition had been filed. Based on that information the attorney told the defendants they should post a notice of default and move the cattle where they would be fed and cared for. Shortly thereafter the plaintiff called Mr. Obringer who was in the barn.

Mr. Obringer told the plaintiff that the defendants were considering removing the cattle to which the plaintiff replied “tell them they can take them.” The plaintiff did not ask to talk with the defendants. Instead he called his attorney who called the farm and asked to speak to the defendants. The defendants, who had seen creditors removing goods, observed their cattle in poor condition with the owner out of state, (and no idea when he was returning), and after having been told to go ahead and take the cattle by the plaintiff, and finally upon advice from an attorney that they could do so, made up their minds to take the cattle and refused to talk to the plaintiff’s attorney.

The defendants thereupon procured a trailer and loaded the cattle 4 or 5 at a time with the help of Mr. Obringer and moved them 5 miles to Mr. Oehrtman’s farm. The plaintiff returned on approximately July 15. Neither he nor his attorney requested the return of the cattle. When the defendants became aware of plaintiff’s Chapter 11, they filed a complaint on August 26, 1982 for relief from stay and in the alternative offered to return the cattle to the plaintiff and to restore him to the status quo. Instead the plaintiff chose to file a complaint on August 27, 1982 in an action for violation of stay. Upon agreement of the parties and pursuant to this Court’s Order of November 9,1982, the cattle were sold.

DISCUSSION

Both this court and defense counsel found it difficult to determine the plaintiff’s cause(s) of action and the basis for it (them). In his one page trial brief the plaintiff merely provided the following laundry list under the title “Plaintiff’s Causes of Action Are”:

A. Violation of Automatic Stay
B. Willful, Knowing, Wanton and Deliberate Act Entitling Plaintiff to Punitive or Exemplary Damages
*629 C. Conversion
D. Trespass
E. Interference with Contract
F. Breach of Contract

leaving the court and defense counsel to guess at the underlying factual basis of his assertions. Needless to say the plaintiff also found it unnecessary to cite any statutes or cases in support of his propositions.

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Cite This Page — Counsel Stack

Bluebook (online)
46 B.R. 626, 1985 Bankr. LEXIS 6667, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shriver-v-tingley-in-re-shriver-ohnb-1985.