Wohleber v. Skurko (In re Wohleber)

596 B.R. 554
CourtBankruptcy Appellate Panel of the Sixth Circuit
DecidedMarch 4, 2019
DocketNo. 18-8008
StatusPublished
Cited by24 cases

This text of 596 B.R. 554 (Wohleber v. Skurko (In re Wohleber)) is published on Counsel Stack Legal Research, covering Bankruptcy Appellate Panel of the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wohleber v. Skurko (In re Wohleber), 596 B.R. 554 (bap6 2019).

Opinion

GUY R. HUMPHREY, Bankruptcy Appellate Panel Judge.

The debtor appellant, Lawrence J. Wohleber ("Wohleber"), is appealing an order of the bankruptcy court for the Northern District of Ohio dismissing his complaint seeking damages under 11 U.S.C. § 362(k) for violations of the automatic stay by his former wife, appellee Jennifer Skurko ("Skurko"), and her attorney, appellee Leslie Gentile ("Gentile"). The adversary complaint alleged that Skurko and Gentile violated the stay by allowing the post-petition sentencing portion of a pre-petition contempt proceeding to continue despite their knowledge that the automatic stay was in effect. At sentencing, Wohleber was ordered confined to jail until he paid a property settlement previously ordered by the domestic relations court. Ruling from the bench on a motion for judgment on partial evidence at the conclusion *559of Wohleber's case, the bankruptcy court found no violation of the automatic stay occurred because: a) the former wife and her counsel did not take affirmative action post-petition to try to collect the debt, such as trying to negotiate a settlement of the property settlement award; and b) there was no affirmative action they could take to prevent the domestic relations judge from jailing the debtor for nonpayment of the property settlement because the contempt motion was already ruled upon, and therefore could not be withdrawn, and all that was left was for the judge to "sentence" the debtor for his contempt of her order.

I. ISSUES ON APPEAL

Wohleber framed his only issue on appeal as "[w]hether the Bankruptcy Court erred in granting Judgment in favor of Defendants Gentile and Skurko." To address Wohleber's single assignment of error, the panel will address two underlying issues:

1. Is the continuation of a contempt proceeding against a debtor a violation of the automatic stay when the contempt was found pre-petition, but the "sentencing hearing" at which the court ordered the debtor jailed for failure to pay a property settlement was post-petition, and the only condition to purge the contempt was to pay the property settlement?
2. Does a creditor and her legal counsel violate the automatic stay when they take no action to stop a state court from proceeding with a contempt hearing, the stated purpose of which is to confine the debtor to jail for failure to pay a dischargeable property settlement, and in failing to act to prevent the state court from sentencing the debtor to jail under such circumstances?

II. JURISDICTION AND STANDARD OF REVIEW

The United States District Court for the Northern District of Ohio has authorized appeals to the Panel, and no party has timely filed to have this appeal heard by the district court. 28 U.S.C. §§ 158(b)(6), (c)(1). A final order of the bankruptcy court may be appealed as of right. 28 U.S.C. § 158(a)(1). For the purpose of an appeal, a final order is one that "ends the litigation on the merits and leaves nothing for the court to do but execute the judgment." Midland Asphalt Corp. v. U.S. , 489 U.S. 794, 798, 109 S.Ct. 1494, 1497, 103 L.Ed.2d 879 (1989) (quoting Van Cauwenberghe v. Biard , 486 U.S. 517, 521, 108 S.Ct. 1945, 1949, 100 L.Ed.2d 517 (1988) ) (internal quotation marks omitted). The order before the Panel grants a motion for a directed verdict to Skurko and Gentile and fully disposes of the adversary proceeding, making it a final order. Geberegeorgis v. Gammarino (In re Geberegeorgis ), 310 B.R. 61, 63 (6th Cir. BAP 2004) (citing Lindsey v. O'Brien, Tanski, Tanzer & Young Health Care Providers of Conn. (In re Dow Corning Corp. ), 86 F.3d 482, 488 (6th Cir. 1996) ) ("[A]n order that concludes a particular adversarial matter within the larger case should be deemed final and reviewable in a bankruptcy setting.").

The Bankruptcy Court's decision was rendered as a judgment on partial evidence at the conclusion of Wohleber's presentation of evidence. Federal Rule of Bankruptcy Procedure 7052 makes Federal Rule of Civil Procedure 52 applicable to adversary proceedings. Rule 52(c) provides that in a bench trial, at the conclusion of a party's presentation of evidence, "the court may enter judgment against the party on a claim or defense that, under the controlling law, can be maintained or defeated *560only with a favorable finding on that issue," but that judgment "must be supported by findings of fact and conclusions of law as required by Rule 52(a)." The judgment's conclusions of law are reviewed de novo, and its findings of fact are reviewed for clear error. Sharp ex rel. Estate of Sharp v. United States , 401 F.3d 440, 442 (6th Cir. 2005).

"Under a de novo standard of review, the reviewing court decides an issue independently of, and without deference to, the trial court's determination." Menninger v. Accredited HomeLenders (In re Morgeson ), 371 B.R. 798, 800 (6th Cir. BAP 2007). Essentially, the reviewing court decides the issue "as if it had not been heard before." Mktg. & Creative Sols., Inc. v. Scripps Howard Broad. Co. (

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Cite This Page — Counsel Stack

Bluebook (online)
596 B.R. 554, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wohleber-v-skurko-in-re-wohleber-bap6-2019.