586 F. App'x 615
3rd Cir.2014Background
- Debtor Don Scioli filed Chapter 7 on Feb 19, 2012; his wife did not join the filing. Trustee objected to exemptions claimed for three vehicles.
- Schedule B listed a 2007 Jeep Wrangler, a Cadillac (actually a 2007 Escalade), and a 2000 Porsche 911; Schedule C claimed each as tenancy by the entireties (TBE) with his wife under 11 U.S.C. § 522(b)(3)(B).
- Trustee produced the vehicle titles showing each was titled solely in Scioli’s name and bank statements showing vehicle payments from Scioli’s business account (RED5 Media, Ltd.).
- Scioli testified at the creditors’ meeting that he had no personal bank account for years and that business accounts (with a business partner) paid his bills; he declined to present further testimony or evidence at the hearing despite invitation.
- Bankruptcy Court sustained the Trustee’s objection; District Court affirmed. Appellant appealed to the Third Circuit, which affirmed, holding Scioli failed to rebut the presumption created by the titles and his own testimony.
Issues
| Issue | Plaintiff's Argument (Scioli) | Defendant's Argument (Trustee) | Held |
|---|---|---|---|
| Whether Scioli rebutted the presumptively valid exemption claim of TBE under § 522(b)(3)(B) for the three vehicles | The vehicles were marital property held by Scioli and his wife as tenants by the entireties despite titles in his name alone | Titles showing Scioli alone, plus bank records showing payments from business accounts, rebut the exemption; burden shifted to Scioli to produce unequivocal evidence of TBE ownership | Held: Trustee met burden to rebut; Scioli failed to provide unequivocal evidence of TBE; exemptions disallowed |
Key Cases Cited
- Binder & Binder, P.C. v. Handel, 570 F.3d 140 (3d Cir. 2009) (standard of review: clear error for facts, plenary for legal questions on bankruptcy appeals)
- In re Woskob, 305 F.3d 177 (3d Cir. 2002) (same appellate review framework)
- Carter v. Anderson (In re Carter), 182 F.3d 1027 (9th Cir. 1999) (burden-shifting framework for claimed exemptions: objector must rebut, debtor must then produce unequivocal evidence)
- Matter of One 1985 Mercedes Benz Auto., 644 A.2d 423 (Del. Super. 1992) (certificate of title is presumptive but not conclusive evidence of ownership)
- Moser v. Moser, 287 A.2d 398 (Del. 1972) (property purchased with joint funds but titled in one spouse’s name may remain joint property)
- William M. Young Co. v. Tri-Mar Assoc., Inc., 362 A.2d 214 (Del. Super. 1976) (presumption that personal property purchased and used by spouses is held by the entireties)