Taylor v. Slick (In Re Taylor)

207 B.R. 995, 1997 Bankr. LEXIS 550, 1997 WL 218767
CourtUnited States Bankruptcy Court, W.D. Pennsylvania
DecidedMay 1, 1997
Docket19-20865
StatusPublished
Cited by9 cases

This text of 207 B.R. 995 (Taylor v. Slick (In Re Taylor)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, W.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Taylor v. Slick (In Re Taylor), 207 B.R. 995, 1997 Bankr. LEXIS 550, 1997 WL 218767 (Pa. 1997).

Opinion

MEMORANDUM OPINION

JUDITH K. FITZGERALD, Bankruptcy Judge.

The matter before the court is the motion of Thomas McCune Slick to dismiss Debtor’s complaint. Because we will consider matters outside the pleadings, as reflected on the state court docket and in the briefs, we will treat this motion as a motion for summary judgment. Fed.R.Civ.P. 12(b). See also Fed.R.Civ.P. 56. The complaint concerns approximately 20 acres of real estate located at R.D. # 1, West Newton, Sewickley Township, Westmoreland County, Pennsylvania. Slick is the executor of the estate of Dorothy M. Balentine, the mortgagee. 1 Slick obtained a default judgment in mortgage foreclosure in 1990 in the Court of Common Pleas of West-moreland County, Pennsylvania. Writs of Execution were issued at various times and stayed by agreement of the parties. Debtor filed the instant chapter 11 on September 1, 1995, to stay a sheriffs sale scheduled for September 5, 1995. Because the bankruptcy was filed a few days before, the sheriffs sale was continued to October 23, 1995, by oral public announcement at the time and place set for the sheriffs sale pursuant to Pa. R.Civ.P. 3129.3. Slick obtained a default order granting relief from stay on October 17, 1995, and the sheriffs sale took place on October 23,1995.

Debtor’s complaint consists of six counts. Count I seeks a declaratory judgment invalidating the sale and decreeing his ownership of the acreage. Debtor alleges that the continuation of the sheriffs sale postpetition violated the automatic stay and, therefore, the sale is void. In the general averments of the complaint, Debtor also alleges that he did not receive notice of the motion for relief from stay filed by Slick in this case. If he had, he contends, he could have shown that there was a substantial equity cushion in the property, thereby preventing entry of an order granting relief from stay.

Counts II, III, IV, and V are related. Count II seeks a judgment against Slick for conversion of wheat and straw Debtor planted on the property in 1995 that was harvested and sold by Slick in August, 1996. Count III seeks a judgment against Slick for unjust enrichment arising from the harvesting and sale of the wheat and straw by Slick. Debtor avers that he did all the work and Slick reaped the profits.

Count IV seeks an accounting concerning the wheat and straw and the amount of the claim based on the mortgage and note. With respect to the latter, Debtor specifically challenges the ten percent post-judgment interest rate charged by Slick. Count V is captioned “Objection to Claim” and states, in part,

45. The Defendant’s alleged claim is based upon an erroneous interest calculation on the allegations concerning the wheat, straw, and interest rate.
46. The Defendant’s alleged claim provides no credit for the wheat and straw wrongfully taken from the property.
Wherefore, it is respectfully requested that the Honorable court dismiss the De *997 fendant’s claim and/or make a determination as to the proper amount of said claim.

Slick has not filed a proof of claim in this bankruptcy case and Debtor did not file one on Slick’s behalf. Slick obtained a judgment in foreclosure and, after obtaining an order of this bankruptcy court granting relief from stay, executed on the judgment. Unless there are grounds to vacate the order granting relief from stay and set aside the sheriffs sale, Slick is the owner of the property. Because there is no proof of claim based on a deficiency, Debtor’s objection to claim is not cognizable. 2

Finally, Count VI is captioned “Equitable Recoupment”. Debtor alleges that Slick, whose property is adjacent to the 20 acres at issue, allowed his livestock to enter on the 20 acres and eat or otherwise destroy Debtor’s crops.

The motion to dismiss alleges that this court lacks jurisdiction over this adversary because the court granted relief from stay, after which the property was sold at sheriffs sale. The motion also asserts that all of the issues raised in the complaint have or could have been litigated in numerous state and bankruptcy actions and that Debtor is merely attempting to use this forum to relitigate issues previously decided.

Based on the record before us and the applicable law, we will grant Slick’s motion to dismiss with respect to Count I and Count VI. The only issues remaining, therefore, are those based on Counts II, III, IV, and V concerning the wheat and straw. There are insufficient facts alleged of record concerning Debtor’s allegations with respect to the wheat and straw to permit dismissal or summary judgment. The state court had entered a temporary injunction preventing Debtor from interfering with Slick’s harvesting and sale of the standing wheat crop but it was dissolved because the wheat had been harvested before a full hearing on the merits. The record before us does not support Slick’s contention that the parties’ rights concerning the wheat were litigated in the state court. Furthermore, the parties’ rights in this regard may depend on the terms of the mortgage and note which are not part of the record.

With this background, we proceed to the facts. Because Debtor alleges that he never received notice of the motion for relief from stay, this court will exercise jurisdiction to determine whether the bankruptcy process has been followed and Debtor’s right to due process protected. At this stage of the litigation, we construe the facts in the light most favorable to Debtor as the non-moving party.

In 1981 Debtor and his wife, who is not a debtor in this case, purchased from Martha J. Balentine approximately 20 acres of real estate in Westmoreland County for $72,450. The property is not Debtor’s residence. A note and mortgage were executed on December 16, 1981. The amount owed was due in full on September 18, 1982, according to Slick. See Brief in Support of Motion to Dismiss at 1. Debtor was required to make three equal payments of $14,875 plus interest at ten percent per annum. Thomas MeCune Slick, Mrs. Balentine’s executor, instituted foreclosure proceedings in 1989 because Debtor had defaulted on the mortgage. 3 Attached to Slick’s motion to dismiss is the *998 relevant portion of the Westmoreland County Court of Common Pleas docket sheet. 4 Personal service of the complaint in mortgage foreclosure was attempted on or about October 31,1989, and was unsuccessful as indicated by a docket entry of that date showing that the sheriffs return of “not found” was filed. Praecipes to reinstate the complaint were filed on July 30 and September 17 of 1990. 5 The docket reflects that an order was entered on August 31, 1990, permitting substitute service of the complaint on Debtor and his wife by certified and regular mail and by posting the premises. The order further provides that

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Cite This Page — Counsel Stack

Bluebook (online)
207 B.R. 995, 1997 Bankr. LEXIS 550, 1997 WL 218767, Counsel Stack Legal Research, https://law.counselstack.com/opinion/taylor-v-slick-in-re-taylor-pawb-1997.