Thomas v. Chrysler Credit Corp. (In re Ozier)

132 B.R. 595, 25 Collier Bankr. Cas. 2d 1216, 1991 Bankr. LEXIS 1512, 22 Bankr. Ct. Dec. (CRR) 271
CourtUnited States Bankruptcy Court, E.D. Arkansas
DecidedOctober 16, 1991
DocketBankruptcy No. 85-30279 S; Adv. No. 88-539
StatusPublished
Cited by1 cases

This text of 132 B.R. 595 (Thomas v. Chrysler Credit Corp. (In re Ozier)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, E.D. Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thomas v. Chrysler Credit Corp. (In re Ozier), 132 B.R. 595, 25 Collier Bankr. Cas. 2d 1216, 1991 Bankr. LEXIS 1512, 22 Bankr. Ct. Dec. (CRR) 271 (Ark. 1991).

Opinion

ORDER REFERRING ADVERSARY PROCEEDING TO DISTRICT COURT

MARY D. SCOTT, Bankruptcy Judge.

This adversary proceeding was filed October 25, 1988 in the Chapter 7 bankruptcy case of debtor, Carlos Ozier. The bankruptcy case was originally filed October 30, 1985. The original Complaint filed by the Chapter 7 trustee seeks actual and punitive damages in the amount of $2,000,000.00. Trustee has made a demand for trial by jury. A Motion to Strike the jury demand has been filed by Chrysler Credit Corporation.

Both Defendants initially sought to have the trustee’s Complaint dismissed and/or moved for summary judgment contending the action was barred by the statute of limitations. Defendant’s Motions came on for hearing February 28, 1989 before the Honorable James G. Mixon, the U.S. Bankruptcy Judge then presiding over the Jonesboro Division. The proceeding memo from that hearing indicates that the Motions were taken “under advisement” on the pleadings, and no evidence was presented at the hearing. On June 28, 1989 the Defendants’ Motions were denied and they were given twenty (20) days to plead further. On July 18, 1989, separate Defendant, Chrysler Credit Corporation, filed a Motion to Reconsider the decision to deny its Motions for Dismissal and/or Summary Judgment. This Motion was set on the Court’s docket before Judge Mixon on November 21, 1989 and was also taken under advisement. Again, no evidence was presented.

Sometime in May of 1990 this adversary proceeding was transferred to the undersigned with reassignment of the Jonesboro Division. A file review revealed that the Motion to Reconsider and Response were submitted on the pleadings and otherwise ready for disposition. Because there had been no evidentiary hearing the Court, after consulting the parties, concluded that the Motion could be decided under the present assignment of cases rather than transferring it back to Judge Mixon for reconsideration. This Court denied the Motion to Reconsider on June 27, 1990 and entered its Preliminary Pre-Trial Order.

The parties filed their Joint Pre-Trial Statement on August 24, 1990. The Court then issued its standard Pre-Trial Order. [597]*597Apparently the demand for jury trial, which appeared only in the trustee’s prayer for relief in the original Complaint, did not come to the Court’s attention because the Pre-Trial Order in September indicated that trial would be before the Court the week of July 29, 1991 through August 2, 1991. The request came to the Court’s attention pursuant to the Motion to Strike Jury Demand. No party to date has filed a motion with the district court to withdraw reference of this matter.1 The week long trial was cancelled to afford the Court an opportunity to consider the jury trial issue. The Court has now reviewed the entire file as well as the jury demand issues and concludes, for the following reasons, that the interests of judicial economy and expediency would best be served by referral of this adversary proceeding to the district court for trial.

HISTORY

A review of the background in this case is initially necessary because this is a 1985 bankruptcy case which procedurally should have been concluded some time ago.

On October 30, 1985, Carlos Royal] Ozier filed a voluntary petition under Chapter 7 of the Bankruptcy Code. November 6, 1985, A. Jan Thomas, Jr., was appointed trustee in the bankruptcy case and Order approving his bond was approved November 20, 1985. April 29, 1986, trustee’s petition for authority to employ himself as legal counsel for the bankruptcy estate was granted. May 2, 1986, Ozier’s discharge was granted.

July 15, 1986, while the bankruptcy case was still open, Ozier filed a Complaint for Money Damages against Chrysler Credit Corporation in the Circuit Court of Mississippi County, Chickasawba District, Arkansas which was assigned No. C-86-140. August 5, 1986, Chrysler filed a Petition for Removal in the United States district court for the Eastern District of Arkansas pursuant to 28 U.S.C. § 1332(a) and the removed state court action was assigned Civil Action No. J-C-86-138. August 11, 1986, Chrysler filed an Answer in the U.S. District Court and contended, among other things, that the U.S. District Court lacked subject matter jurisdiction over the cause of action. March 27, 1987, Chrysler filed a Motion to Dismiss, or In the Alternative, for Summary Judgment asserting that the U.S. District Court lacked subject matter jurisdiction and that the Plaintiff lacked standing to bring the action because of his still pending bankruptcy case. April 27, 1987, Plaintiff filed a Motion to Amend Complaint to add the bankruptcy trustee as a party Plaintiff.

June 23, 1987, the district court entered an Order denying Chrysler’s Motion to Dismiss or In The Alternative, For Summary Judgment as well as the Plaintiff’s Motion to Amend to add the trustee as a party Plaintiff basing its decision upon the fact that the bankruptcy case had been terminated. July 23, 1987, Chrysler filed a Motion to Reconsider the district court’s June 23,1987 Order, and on August 13,1987, the district court entered an Order granting Chrysler’s Motion to Reconsider, finding as follows:

The Court denied the motion [to dismiss] in large part because of its misunderstanding of the status of the bankruptcy case. In the motion for reconsideration, defendant points out that the case is still open ... The Court ... finds [therefore] that this matter is referred ... to United States Bankruptcy Judge ... for disposition in whatever manner he deems appropriate.2

The cause of action transferred to the bankruptcy court pursuant to the district court Order was assigned Adversary Proceeding No. 87-564 on August 17, 1987.

[598]*598On September 16, 1987, Chrysler filed a Notice of Appeal from the Order denying it’s Motion to Dismiss or for Summary Judgment and transferring the cause to the bankruptcy judge. November 23,1987, 837 F.2d 479, the United States Court of Appeals for the Eighth Circuit dismissed Chrysler’s appeal as premature finding that the district court’s Order denying Chrysler’s Motion to Dismiss and transferring the matter to the bankruptcy court was an interlocutory Order and therefore not appealable. Mandate issued December 14, 1987. As a result of the Court of Appeals ruling, the bankruptcy court entered an Order January 26, 1988 reinstating AP No. 87-564, which had been administratively closed December 24, 1987, and indicated that a status hearing would be set by subsequent Order of the Court.

On January 25,1988, Chrysler again filed a Motion to Dismiss Or In The Alternative For Summary Judgment in the adversary proceeding. In support of its Motion Chrysler argued that (1) the Court lacked jurisdiction over the subject matter of debt- or’s claim; (2) debtor’s Complaint failed to state a claim upon which relief could be granted in that debtor’s cause of action was extinguished by operation of law by debtor’s failure to list the instant action as an asset of his bankruptcy estate; and (3) Plaintiff lacked standing to prosecute the instant action.

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Bluebook (online)
132 B.R. 595, 25 Collier Bankr. Cas. 2d 1216, 1991 Bankr. LEXIS 1512, 22 Bankr. Ct. Dec. (CRR) 271, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thomas-v-chrysler-credit-corp-in-re-ozier-areb-1991.