130 A.3d 368
Me.2015Background
- In 1982 Faith Temple (then First United Pentecostal Church) contracted with Steven DiPietro for church construction; DiPietro later filed bankruptcy. In 1985 the U.S. Bankruptcy Court determined $11,000 of the claim nondischargeable and the clerk issued a money judgment. DiPietro did not appeal the bankruptcy judgment.
- In 2012 Faith Temple filed a state-court action in Maine seeking entry of a domestic judgment on the 1985 bankruptcy judgment and compounded post-judgment interest (total sought ≈ $119,547). An ex parte attachment issued; the case was removed to Superior Court.
- DiPietro answered, asserted 32 affirmative defenses (including laches, estoppel, fraud), and counterclaimed against Faith Temple and its pastor Phillip Stearns for declaratory relief and multiple torts; he alleged improper notice and other defects in the 1985 judgment.
- Faith Temple moved for an order authorizing a writ of execution on the bankruptcy judgment and later moved for judgment on the pleadings; the court authorized execution, entered attachments, granted judgment on the pleadings for Faith Temple, and dismissed DiPietro’s claims against Stearns.
- On appeal the Maine Supreme Judicial Court vacated the execution order and final judgment, and vacated dismissal of claims against Stearns, holding (1) a state writ of execution could not issue on the foreign bankruptcy judgment before a state judgment was obtained via adjudication or the Uniform Enforcement of Foreign Judgments Act, (2) judgment on the pleadings was improper given factual disputes, and (3) DiPietro adequately pleaded individual tort claims against Stearns.
Issues
| Issue | Plaintiff's Argument (Faith Temple) | Defendant's Argument (DiPietro) | Held |
|---|---|---|---|
| Existence of cause of action to convert foreign judgment to domestic judgment | State common law recognizes an action on a judgment; Faith Temple may proceed in state court | No express statute creates such a cause of action in Maine | Court: Common-law action for debt on a judgment survives; action not barred (affirmed denial of dismissal) |
| Authority to issue writ of execution on bankruptcy judgment before state adjudication | Execution proper because bankruptcy judgment is valid and enforceable | Execution improper absent a state judgment or use of the Uniform Enforcement Act | Court: Execution should not have issued; Faith Temple’s chosen route (action on the judgment) did not entitle it to immediate writ of execution (vacated execution) |
| Validity of 1985 Bankruptcy Court money judgment (collateral attack) | Bankruptcy court had jurisdiction to determine dischargeability and quantify the nondischargeable debt | Judgment void for lack of subject-matter jurisdiction to issue a money judgment | Court: Decline to permit collateral attack — record does not show lack of jurisdiction; bankruptcy court’s order not shown void (challenge rejected) |
| Granting judgment on the pleadings and dismissal of counterclaims/claims against Stearns | Judgment appropriate because bankruptcy judgment validated and execution authorized; Stearns sued only in corporate/pastoral capacity | DiPietro alleged factual disputes and individual torts by Stearns; affirmative defenses raise factual issues | Court: Judgment on the pleadings improper (denials and affirmative defenses raise triable issues); dismissal of Stearns reversed because individual tort allegations suffice (vacated judgments/dismissal) |
Key Cases Cited
- Milwaukee County v. M. E. White Co., 296 U.S. 268 (U.S. 1935) (recognizing actions upon judgments historically maintained at common law)
- Edwards v. Moody, 60 Me. 255 (Me. 1872) (Maine recognizes by implication common-law action of debt on a foreign judgment)
- Warren v. Waterville Urban Renewal Auth., 290 A.2d 362 (Me. 1972) (subject-matter jurisdiction defects may support collateral attack)
- Reville v. Reville, 370 A.2d 249 (Me. 1977) (limits on collateral attack of judgments)
- Cowen v. Kennedy (In re Kennedy), 108 F.3d 1015 (9th Cir. 1997) (bankruptcy courts may enter monetary judgments incident to nondischargeability findings)
- Porges v. Gruntal & Co. (In re Porges), 44 F.3d 159 (2d Cir. 1995) (bankruptcy courts’ authority to quantify nondischargeable claims)
- Northern Pipeline Construction Co. v. Marathon Pipe Line Co., 458 U.S. 50 (U.S. 1982) (limits on bankruptcy adjudicatory authority under Article III)