Tipton v. Adkins (In Re Tipton)

257 B.R. 865, 2000 Bankr. LEXIS 609, 2000 WL 1807754
CourtUnited States Bankruptcy Court, E.D. Tennessee
DecidedFebruary 7, 2000
DocketBankruptcy No. 99-21551. Adversary No. 99-2043
StatusPublished
Cited by14 cases

This text of 257 B.R. 865 (Tipton v. Adkins (In Re Tipton)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, E.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tipton v. Adkins (In Re Tipton), 257 B.R. 865, 2000 Bankr. LEXIS 609, 2000 WL 1807754 (Tenn. 2000).

Opinion

MEMORANDUM

MARCIA PHILLIPS PARSONS, Bankruptcy Judge.

In this adversary proceeding, the debt- or, Johnny Darrell Tipton, seeks a permanent injunction enjoining his former spouse, Teresa Tipton Bruner, and her attorney, J. Marty Adkins, from undertaking collection efforts to force payment by the debtor of certain marital obligations. The debtor also seeks an award of damages from Mr. Adkins based on an alleged violation of the automatic stay in connection with Mr. Adkins’ commencement of contempt proceedings against the debtor in state court on behalf of Ms. Bruner. Mr. Adkins has moved to dismiss the complaint, asserting that this court has no jurisdiction over the defendants because both are residents of Virginia. Mr. Adkins also contends that no violation of the stay has occurred because he did not have knowledge of the bankruptcy at the time he commenced the contempt action against the debtor and because a finding of contempt by the state court is a prerequisite to any request by Ms. Bruner for spousal support. For the reasons discussed below, the motion to dismiss 1 will be denied in all respects. This is a core proceeding. See 28 U.S.C. § 157(b)(2)(0).

I.

The debtor filed for chapter 7 relief on June 15, 1999. In the complaint initiating this adversary proceeding filed on September 20, 1999, the debtor alleges that Ms. Bruner was scheduled as a creditor and received notice of the bankruptcy filing. The complaint further alleges that on September 14, 1999, the debtor was served ■with a Notice and Motion advising him that on September 20, 1999, Mr. Adkins as counsel for Ms. Bruner “will move the Circuit Court of Scott County, Virginia to hold the [debtor] in contempt and to fine and/or imprison him for his failure to comply with the Final Decree of this Court.” According to the complaint, the “Final Decree” referenced in the Notice and Motion was the Separation and Property Settlement Agreement entered into by the debt- or and Ms. Bruner on October 9, 1995. This agreement, inter alia, requires the debtor to be solely responsible for certain credit card debt owed to Visa and MasterCard by the parties and to hold Ms. Bruner harmless from any liability thereon.

The complaint asserts that after the debtor was served with the Notice and Motion, his attorney faxed a letter to Mr. Adkins on the morning of September 16, 1999, advising him of the debtor’s bankruptcy case and that “several messages were left at the attorney’s office concerning the fact that Debtor was in bankruptcy.” The complaint further states that “attempts were made to bring J. Marty Adkins, Esquire aware of the fact that his actions may well violate 11 U.S.C. § 362(a) and that the automatic Stay still continued to apply” and that “several attempts were made to obtain the agreement of the Defendants to continue or suspend the [contempt] hearing” but that “the Defendant *869 R.[sic] Marty Adkins, Esquire at no time responded to several different faxed messages and phone calls.” The complaint notes that the deadline to determine the dischargeability of debts pursuant to 11 U.S.C. § 523(a)(15) ran September 13, 1999.

In conjunction with the commencement of the adversary proceeding, the debtor filed a “MOTION FOR TEMPORARY RESTRAINING ORDER AND SHOW CAUSE HEARING FOR SANCTIONS” requesting that the court enter a temporary restraining order (“TRO”) preventing the defendants from prosecuting the contempt motion in the Circuit Court of Scott County, Virginia. At an emergency hearing held on September 20, 1999, this court granted the motion, issued a TRO, and scheduled a hearing for September 30, 1999, on the issue of whether the TRO should be converted into a preliminary injunction. By agreement of the parties, the September 30, 1999 hearing was continued until October 5 and then again to October 19, 1999. At the October 19 hearing, the court converted the TRO into a preliminary injunction pending the final hearing in this proceeding. An order to this effect was entered on December 7, 1999, nunc •pro tunc to October 19,1999. Neither Ms. Bruner nor Mr. Adkins appeared at the September 20 and October 19 hearings.

On November 26, 1999, Mr. Adkins filed the “SPECIAL APPEARANCE — MOTION TO DISMISS” pending before the court. In the motion to dismiss, Mr. Adkins alleges that prior to instituting the contempt action against the debtor, he telephoned “all Virginia Districts” and “all Tennessee Bankruptcy Districts” to ascertain if the debtor had filed for bankruptcy relief since Ms. Bruner advised him that the debtor had filed “but ... did not have a copy of any documents.” Mr. Adkins states in the motion that all of the bankruptcy courts which he telephoned advised him that no bankruptcy case had been filed by the debtor. Mr. Adkins admits that upon the filing of the contempt motion, he learned of the debtor’s pending case in the Northeastern Division of the Eastern District of Tennessee.

Mr. Adkins also asserts in the motion to dismiss that neither he nor Ms. Bruner violated “any Bankruptcy Rules” by filing the contempt motion since “[t]he motion to have Mr. Tipton held in contempt does not obligate Mr. Tipton to make any payments in contravention of the bankruptcy order.” Mr. Adkins attaches to the motion to dismiss a copy of “an amended motion which requests spousal support and the petitioner represents to the Court that the request for spousal support should have been included in the original motion as it was the intent of Ms. Bruner to receive spousal support; and, in order for her to receive spousal support Mr. Tipton had to be found in contempt before a request for spousal support could be made.” Lastly, Mr. Adkins asserts that “[t]he petitioner nor Ms. Bruner are subject to the jurisdiction of this court in that both are residents of Virginia and have taken no action in Tennessee that would give this Court jurisdiction.”

In his response in opposition to the motion to dismiss, the debtor asserts that he is without sufficient information to admit or deny Mr. Adkins’ allegation that he was unable to determine prior to the filing of the contempt motion if the debtor had a bankruptcy case pending. The debtor notes, however, that Mr. Adkins had knowledge of the bankruptcy as of September 15, 1999, that Ms. Bruner, as a scheduled creditor, had notice of the bankruptcy and that Ms. Bruner’s prior counsel had notice. The debtor disputes Mr. Adkins’ contention that the contempt motion did not violate the automatic stay, noting that at the time the motion was filed, the debtor’s only obligation to Ms. Bruner was for payment of the marital debts under their divorce order and thus, “the only apparent purpose for seeking incarceration for his failure to pay ordered debts was to secure the payments of those debts.” The debtor also challenges Mr. Adkins’ asser *870 tion that the debtor needed to be found in contempt before a request for spousal support could be made by Ms. Bruner, noting that no legal authority is cited for such a proposition. With respect to Mr.

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Cite This Page — Counsel Stack

Bluebook (online)
257 B.R. 865, 2000 Bankr. LEXIS 609, 2000 WL 1807754, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tipton-v-adkins-in-re-tipton-tneb-2000.