466 B.R. 460
8th Cir. BAP2012Background
- Debtor filed Chapter 13 in 2010, later converted to Chapter 7 with Trustee appointed.
- In 1993 Debtor bought a non-qualified deferred variable annuity for $30,000; no contributions since then.
- Annuity payments are scheduled to begin in 2033; Debtor claimed exemptions for the annuity under Missouri law.
- Bankruptcy court repeatedly sustained objections to exemptions under various Missouri statutes prior to September Order.
- Debtor amended Schedule C in 2011 to claim exemptions under 513.430.1(7), 377.330, and 377.090; Trustee objected.
- Court held the annuity is not life insurance and that sections 377.330 and 377.090 do not apply; res judicata barred further claims.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether res judicata bars the exemption claim. | Bryan asserts new theories using the same facts. | Stanton argues prior final orders foreclose the claim. | Res judicata bars the exemption claim. |
| Whether 513.430.1(7) exempts the annuity. | Annuity qualifies as unmatured life insurance under 513.430.1(7). | Annuity is not unmatured life insurance; statute inapplicable. | Not exempt under 513.430.1(7). |
| Whether 377.330 applies to the annuity. | Company authorized to do business as stipulated premium enough for 377.330. | Record shows no authorization as stipulated premium insurer; 377.330 inapplicable. | 377.330 does not apply. |
| Whether 377.090 applies to the annuity. | Annuitant argues assessment-plan insurance classification supports exemption. | No authorization as assessment-plan insurer; statute inapplicable. | 377.090 does not apply. |
Key Cases Cited
- Ladd v. Ries (In re Ladd), 450 F.3d 751 (8th Cir. 2006) (res judicata bars new state exemptions after denial of bankruptcy exemption)
- Banks v. Int'l Union Elec., 390 F.3d 1049 (8th Cir. 2004) (same nucleus of operative facts governs relitigation of exemption claims)
- Benn v. Cole (In re Benn), 491 F.3d 811 (8th Cir. 2007) (precedent on stare decisis; Benn remains controlling)
- Cawley v. Celeste (In re Athens/Alpha Gas Corp.), 463 B.R. 883 (8th Cir. BAP 2012) (court may affirm on any basis supported by the record)
- NationsBank of North Carolina, N.A. v. Variable Annuity Life Ins. Co., 513 U.S. 251 (1995) (annuities not automatically classified as insurance despite regulation and sale by insurers)