Evangelista v. Hutchinson, 24-04390

Debtor Katherine Marie Sherrit filed for Chapter 7 bankruptcy while co-owning real property with the defendant, Mikholae Hutchinson.
After Sherrit's bankruptcy filing, she executed a quit claim deed transferring her 50% interest in the property to Hutchinson; he recorded the deed shortly thereafter.
The Chapter 7 trustee, Karen Evangelista, challenged this transfer as a violation of the bankruptcy automatic stay and brought an adversary proceeding against Hutchinson for summary judgment.
Counts I and II of the complaint were dismissed, and the case proceeded only on Count III, which alleged violation of the automatic stay.
The court considered cross-motions for summary judgment from both parties, without a hearing, and reviewed supporting briefs and evidence (including fee itemizations).

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether the post-petition property transfer violated the automatic stay	The transfer was a deliberate act to exercise control over estate property, prohibited by 11 U.S.C. § 362(a)(3).	The stay had terminated upon denial of the debtor’s discharge under § 362(c)(2)(C).	Court held the stay remained; the transfer violated § 362(a)(3).
Was the violation willful within § 362(k)(1)?	Actions were deliberate and defendant had actual knowledge of the bankruptcy.	No intent to violate; acted in good faith, or pursuant to a pre-existing legal agreement.	A willful violation requires deliberate conduct with knowledge of the case, not specific intent. Court found willfulness.
Trustee’s standing to recover monetary relief	Trustee entitled to compensation for willful stay violations under § 105(a).	Trustee cannot recover under § 362(k)(1) because not an “individual.”	Trustee may recover under § 105(a) for attorney’s fees and costs.
Amount of compensable attorney’s fees and expenses	Claimed all post-adversary fees and expenses related to Count III.	Claimed total requested was excessive or included ineligible work.	Only fees and expenses post-filing of Count III claim were compensable; adjusted award to $1,512.00 fees and $358.61 expenses.

In re Printup, 264 B.R. 169 (Bankr. E.D. Tenn. 2001) (standard for willful violation of automatic stay)
In re Daniels, 206 B.R. 444 (Bankr. E.D. Mich. 1997) (deliberate acts with knowledge of bankruptcy are willful stay violations)
In re Bello, 612 B.R. 389 (Bankr. E.D. Mich. 2020) (court’s articulation of strict liability for willful stay violations)
Bankers Healthcare Grp., Inc. v. Bilfield, 494 B.R. 292 (Bankr. N.D. Ohio 2013) (discussing willful violation standard)