Venable v. Acosta (In Re Venable)

280 B.R. 916, 2002 Bankr. LEXIS 770, 2002 WL 1748628
CourtUnited States Bankruptcy Court, M.D. Florida
DecidedJuly 25, 2002
DocketBankruptcy No. 01-10601-BKC-3P3. Adversary No. 01-372
StatusPublished
Cited by4 cases

This text of 280 B.R. 916 (Venable v. Acosta (In Re Venable)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Venable v. Acosta (In Re Venable), 280 B.R. 916, 2002 Bankr. LEXIS 770, 2002 WL 1748628 (Fla. 2002).

Opinion

*918 ORDER GRANTING MOTION TO DISMISS OF DEFENDANTS OFFICER M.E. ETHEREDGE, SGT. P. MCCAULLEY AND THE CITY OF ST. AUGUSTINE POLICE DEPARTMENT

GEORGE L. PROCTOR, Bankruptcy Judge.

This proceeding came before the Court for continued pre-trial hearing on June 25, 2002, on the Motion to Dismiss filed by defendants Officer M. Etheredge, Sgt. P. McCaulley and City of St. Augustine Police Department (“Defendants”).

The First Amended Complaint alleges that the Defendants violated the automatic stay under Section 362 by failing to intervene in a post-petition re-possession of plaintiffs vehicle. Plaintiff alleges she observed a truck towing her car, and called 911 to report that the car was stolen. In response to plaintiffs call, and without any knowledge that a private repossession was underway, Officer Etheredge was dispatched to look for the alleged stolen vehicle. He found a truck towing the alleged stolen vehicle, and stopped the truck to investigate.

Shortly thereafter, the plaintiff arrived on the scene and complained to Officer Etheredge about the private repossession. Plaintiff alleges she told Officer Etheredge about her bankruptcy case. Officer Ether-edge observed what was happening, listened to the allegations of both parties, and made a decision not to interfere in the dispute. The plaintiff then went to the police station, and complained to Sgt. McCaulley. Sgt. McCaulley listened to plaintiffs argument, and decided not to interfere in the dispute between the plaintiff and the tow truck driver.

Defendants seek dismissal of the First Amended Complaint on the following grounds:

1. Plaintiffs claims are barred by the Eleventh Amendment to the United States Constitution.

2. Section 106 of the Bankruptcy Code is unconstitutional as applied to these Defendants.

3. Plaintiffs claims are barred by the doctrine of sovereign immunity.

Defendants’ Motion To Dismiss states that both police officers followed the long standing St. Augustine Police Department policy of not interfering with civil disputes between private citizens. Defendants argue that for the court to intervene, it “inappropriately would entangle itself in fundamental questions of policy and planning.” Trianon Park Condominium Association Inc. v. City of Hialeah, 468 So.2d 912, 918 (Fla.1985).

Plaintiffs Memorandum of Law in Opposition to Defendants’ Motion to Dismiss argues that Defendants, as a municipality and agents of a municipality, are not agents or agencies of the State of Florida and are not entitled to Eleventh Amendment or sovereign immunity protection.

The Court concludes that Defendants’ Motion To Dismiss should be granted based on the following analysis of the law.

I. § 106(A) OF THE BANKRUPTCY CODE IS UNCONSTITUTIONAL

As a preliminary matter, the Court finds that the United States Supreme Court has dealt with the issues raised in this proceeding, and concluded that § 106 of the Bankruptcy Code (11 U.S.C. § 106) is unconstitutional. In Seminole Tribe of Florida v. Florida, 517 U.S. 44, 116 S.Ct. 1114, 134 L.Ed.2d 252 (1996), the Court stated that in order to determine whether Congress has abrogated the states’ sovereign immunity, it must ask two questions: first whether Congress has “unequivocally expressed] its intent to ab *919 rogate the immunity,” and second, whether Congress has acted “pursuant to a valid exercise of power.” The Court further held that “the Eleventh Amendment restricts the judicial power under Article III, and Article I cannot be used to circumvent the constitutional limitations placed upon federal jurisdiction.” 517 U.S. at 72-73, 116 S.Ct. at 1131-32. 1

In footnote 16, the Supreme Court recognized the bankruptcy implications of the Seminole decision:

[I]t has not been widely thought that the federal antitrust, bankruptcy, or copyright statutes abrogated the States’ sovereign immunity. This Court never has awarded relief against a State under any of those statutory schemes;
Although the copyright and bankruptcy laws have existed practically since our nation’s inception, and the antitrust laws have been in force for over a century, there is no established tradition in the lower federal courts of allowing enforcement of those federal statutes against the States. Id. at 73, 116 S.Ct. 1114.

A majority of federal courts have determined that Seminole leaves the Fourteenth Amendment as the sole avenue for Congress to validly abrogate a State’s immunity. A majority of federal courts have also determined that Congress enacted the Bankruptcy Code pursuant to its Article I Bankruptcy Powers and not the Fourteenth Amendment. Consequently they have concluded that Congress’ attempt to abrogate the state’s sovereign immunity in the Bankruptcy Code is invalid. In re Sacred Heart Hospital of Norristoum, 133 F.3d 237, 244 (3rd Cir.1998) (While Congress need not recite words “section 5” or “Fourteenth Amendment” or “equal protection” when enacting laws pursuant to its power to enforce provisions of Fourteenth Amendment, if Congress does not explicitly identify source of its power as Fourteenth Amendment, there must be something about the Act connecting it to recognized Fourteenth Amendment aims); In the Matter of the Estate of Fernandez, 123 F.3d 241 (5th Cir.1997) (Congress did not have authority to abrogate, under Bankruptcy Code, state sovereign immunity pursuant to Fourteenth Amendment, given the lack of evidence that the Bankruptcy Reform Act of 1994 was enacted pursuant to Fourteenth Amendment, or that the Act was enacted to remedy any incipient breaches or even general violation of rights specified in the Fourteenth Amendment); In re NVR, L.P., 206 B.R. 831 (Bankr.E.D.Va.1997) (Because Fourteenth Amendment based legislation imposes congressional policy on state involuntarily, and because it often intrudes on traditional state authority, courts should not quickly attribute to Congress unstated intent to act under its authority to enforce Fourteenth Amendment); In re York— Hannover Developments, Inc., 201 B.R. 137 (Bankr.E.D.N.C.1996); In re Tri-City Turf Club, Inc., 203 B.R. 617 (Bankr.E.D.Ky.1996) (Because Congress’ abrogation of states’ sovereign immunity in the Bankruptcy Code was not authorized under the Fourteenth Amendment, bankruptcy court lacked jurisdiction over Chapter 11 debtor’s adversary proceeding); In re Midland Mechanical Contractors, Inc., 200 B.R. 453 (Bankr.N.D.Ga.1996); In re Burke, 200 B.R. 282 (Bankr.S.D.Ga.1996); In re Martinez, 196 B.R.

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Bluebook (online)
280 B.R. 916, 2002 Bankr. LEXIS 770, 2002 WL 1748628, Counsel Stack Legal Research, https://law.counselstack.com/opinion/venable-v-acosta-in-re-venable-flmb-2002.