Taipe v. Carson (In re Carson)

510 B.R. 627
CourtUnited States Bankruptcy Court, E.D. California
DecidedMay 7, 2014
DocketBankruptcy No. 13-90382-5-7; Adversary No. 13-9016
StatusPublished

This text of 510 B.R. 627 (Taipe v. Carson (In re Carson)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, E.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Taipe v. Carson (In re Carson), 510 B.R. 627 (Cal. 2014).

Opinion

MEMORANDUM OPINION AND DECISION

RONALD H. SARGIS, Bankruptcy Judge.

Graciela Carson, the Plaintiff, filed the present Motion requesting attorney fees and costs of $10,562.00 in fees and expenses of $363.46 in this Adversary Proceeding. Evidence in support of this Motion is for the period May 24, 2013, through December 31, 2013. Jurisdiction [630]*630for this Adversary Proceeding and the present Motion exist pursuant to 28 U.S.C. §§ 1334 and 157(a), and the referral of bankruptcy cases and all related matters to the bankruptcy judges in this District. ED Cal. Gen Order 182, 223. This Adversary Proceeding and present Motion are core matters arising under Title 11, including 11 U.S.C. §§ 523. 28 U.S.C. § 157(b)(2)(I).

BACKGROUND OF ADVERSARY PROCEEDING AND UNDERLYING CLAIM

As with many contests in bankruptcy court, the issues in this Adversary Proceeding are preceded by a long history of conflicts between the Plaintiff and Michael Carson, the Defendant (Plaintiffs ex-husband). Exercising judicial literary license, the State Court proceeding and this Adversary Proceeding demonstrate that, “Hell hath no fury like a spouse divorced.” 1

State Court Judgment

The underlying claim which is the subject of this Adversary Proceeding is a judgment issued by the California Superi- or Court, County of Contra Costa, Family Law Division (the “State Court”), Case No. D10-04543 (“Family Law Proceeding”). The State Court issued a judgment on January 24, 2013, in the Family Law Proceeding determining the respective responsibilities of Plaintiff and Defendant.2 The judgment included a $15,000.00 award of attorneys’ for Plaintiff pursuant to California Family Code § 271. In opposing the present Motion, Defendant admits that he was “sanctioned” by the State Court pursuant to this Family Code § 271 for his conduct in those proceedings.3 The judgment in the Family Law Proceeding provides that Plaintiff is to pay Defendant $452.00 per month for child support, and that the $452.00 owed to Defendant is to be offset against Defendant’s obligation to pay the $15,000.00 in attorneys’ fees.4

CONDUCT OF THE PARTIES AND LITIGATION IN THE PRESENT ADVERSARY PROCEEDING

For the Plaintiff, Defendant, and their respective attorneys, concluding that 11 U.S.C. § 553 prevented the setoff rights of Plaintiff from being “discharged” in Defendant’s Chapter 7 bankruptcy case did not come easy. On April 10, 2013, Plaintiff, in pro se, filed the Complaint in this Adversary Proceeding to Determine the Dis-chargeability of Debt under 11 U.S.C. § 523(a)(5).5 Plaintiff sought to have the $15,000.00 attorneys’ fees awarded as sanctions pursuant to California Family Code § 271 determined nondischargeable pursuant to 11 U.S.C. § 523(a)(5) as a domestic support obligation.

Motion to Dismiss — Round One

Defendant filed his First Motion to Dismiss the Complaint pursuant to Federal Rule of Civil Procedure 12(b) and Federal Rule of Bankruptcy Procedure 7012. On June 10, 2013, Plaintiffs present counsel substituted in to represent Plaintiff. Opposition to the First Motion to Dismiss [631]*631was filed and then a Reply was filed by the Defendant.

This court posted its tentative decision6 on the merits to deny the First Motion to Dismiss on several grounds. First, the Motion was not properly served. Second, the Motion failed to comply with the basic pleading requirements of Federal Rule of Civil Procedure 7(b) and Federal Rule of Bankruptcy Procedure 7007.7 At the August 1, 2013 hearing on the First Motion to Dismiss the court and attorneys discussed the provisions of 11 U.S.C. § 553 providing that (with certain inapplicable exceptions) the Bankruptcy Code does not effect setoff rights.

At the August 1, 2013 hearing counsel for Plaintiff consented to the First Motion to Dismiss being granted with leave to amend. Counsel for Plaintiff stated that he had already determined that the pro se prepared Complaint would be amended.8 First Amended Complaint, Motion to Dismiss, Motion to Strike — Round Two

Plaintiff filed the First Amended Complaint (Dckt. 33) prepared by her counsel which asserted nondischargeability of the debt under 11 U.S.C. § 523(a)(5) and (15) and the right of setoff pursuant to 11 U.S.C. § 553. The Parties were not able to resolve the dispute, and the Amended Complaint begat several motions from the Defendant.

Defendant filed a Motion to Strike, seeking to strike the following language of the Amended Complaint (pg. 8, ¶ 4, lines 2-3),

... including attorney fees and costs incurred in litigating this adversary proceedings, subject to proof.

It was argued by Defendant that the above language should be stricken based on it constituting “[a]n insufficient defense or any redundant, immaterial, impertinent, or scandalous material.” The Motion to Strike did not state with particularity the grounds by which the language was any of the above. Fed.R.Civ.P. 7(b); Fed. R. Bankr.P. 7007. Defendant argued in his Points and Authorities (Dckt. 38) that Plaintiff failed to assert a contractual or statutory provision as the basis for attorneys’ fees as required under the “American Rule.”

Defendant also filed a separate (as required under the motion pleading rules) Motion to Dismiss the First Amended Complaint. The grounds stated with particularity in the motion (as required by Fed.R.Civ.P. 7(b) and 7007) consisted of the following statement:

[o]n the grounds: (1) that there are no facts set forth in the complaint to support a claim for relief against him (2) that the plaintiff has failed to and cannot state any causes of action against him.

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Cite This Page — Counsel Stack

Bluebook (online)
510 B.R. 627, Counsel Stack Legal Research, https://law.counselstack.com/opinion/taipe-v-carson-in-re-carson-caeb-2014.