Stoehr v. Grossman

• Court: Court of Appeals for the First Circuit
• Decided: May 26, 1999
• Docket: 98-9015
• Status: Published

Opinion

USCA1 Opinion

       [NOT FOR PUBLICATION NOT TO BE CITED AS PRECEDENT]
                 United States Court of Appeals
                     For the First Circuit

No. 98-9015

                   IN RE: MARILYN A. FRACASSO,

                             Debtor,
                      _____________________

                       MARILYN A. FRACASSO,

                            Appellee,

                                v.

                    L. GEORGE REDER, TRUSTEE,

                            Appellant.

APPEAL FROM THE BANKRUPTCY APPELLATE PANEL

                      OF THE FIRST CIRCUIT

Before
                                
                     Torruella, Chief Judge,
                Campbell, Senior Circuit Judge,
                   and Lynch, Circuit Judge.

L. George Reder on brief pro se.
     Kirk Whitaker Jones, Louis S. Robin and Fitzgerald, O'Brien,
Robin & Shapiro on brief for appellee.

May 15, 1999

Per Curiam.   Debtor-appellee Marilyn A. Fracasso
  claimed a homestead exemption under the Massachusetts homestead
  statute, Mass. Gen. Laws ch. 188, 1.  The trustee-appellant L.
  George Reder, the Chapter 7 trustee in bankruptcy of the
  debtor, filed an Objection to Debtor's Claim of Exemptions, on
  the ground that the debts were contracted prior to the formal
  acquisition of the homestead estate and, therefore, were
  excepted from the exemption. See Mass. Gen. Laws ch. 188,
  1(2).  The bankruptcy court sustained the objection, ruling
  that "522(c) of the Code does not restrict the right of the
  Commonwealth of Massachusetts, as reserved to the states by
  Congress, to craft its Homestead Statute with an exception for
  prehomestead debts."  In re Fracasso, 210 B.R. 221, 228 (Bankr.
  D. Mass. 1997).  
            The United States Bankruptcy Appellate Panel for the
  First Circuit ("BAP") reversed the bankruptcy court's order
  sustaining the trustee's objection to the debtor's homestead
  exemption.  See In re Fracasso, 222 B.R. 400 (1st Cir. BAP
  (Mass.) 1998).  The BAP (in reliance upon a decision by another
  panel of that court) held that " 522(c)[of the Bankruptcy
  Code] overrides the provision in the state statute excepting
  from the debtor's homestead exemption contractual obligations
  incurred prior to acquisition of the homestead estate." Id. at
  401.  The trustee appeals from the BAP's judgment reversing the
  bankruptcy court's order.
            The sole issue on appeal is whether the Bankruptcy
  Code preempts Mass. Gen. L. ch.  1(2), excepting from the
  exemption statute debts contracted prior to the acquisition of
  the homestead.  This very issue was recently decided by another
  panel of this court. In In re Weinstein, 164 F.3d 677, 683 (1st
  Cir. 1999), this court held that "section 1(2) of the homestead
  statute is preempted by  522(c) of the Code."  We are bound by
  that prior panel decision. See United States v. Caron, 64 F.3d
  713, 718 (1st Cir. 1995).
            The judgment of the BAP, dated July 15, 1998, is
  affirmed. See Loc. R. 27.1.