665 F. App'x 372
5th Cir.2016Background
- Raul and Lisa Galaz divorced in 2002; Lisa was required to maintain health insurance for their children, pay premiums, and cover certain unreimbursed medical expenses.
- Lisa filed for Chapter 13 bankruptcy in December 2007 and stopped paying after January 2008.
- In 2009 a state court awarded Raul $9,727 for child support arrearage and attorney’s fees; Raul sought payment from the bankruptcy estate.
- Lisa’s adversarial proceeding for Raul’s alleged fraudulent transfers (Segundo proceeding) resulted in Lisa obtaining a large judgment in her favor in 2014-2015; discharge occurred in January 2012.
- Bankruptcy court issued an injunction preventing Raul from collecting the 2009 and 2011 orders in state court, pending offset against Lisa’s Segundo judgment; district court affirmed.
- The district court remanded to address whether the 2011 order could be enjoined; Raul appealed asserting lack of jurisdiction and improper offset analysis.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the bankruptcy court had jurisdiction to enjoin enforcement of the 2009 Order | Raul: lacked jurisdiction post-plan; estate closed; injunction improper. | Raul: bankruptcy court could enforce its orders to prevent end-run enforcement. | Bankruptcy court had jurisdiction to enforce its prior order via injunction. |
| Whether the bankruptcy court had jurisdiction to enjoin enforcement of the 2011 Order | Raul: no prior order to enforce; post‑confirmation jurisdiction ceased. | Lisa: jurisdiction exists to enforce post‑confirmation matters. | Bankruptcy court lacked jurisdiction to enjoin enforcement of the 2011 Order. |
Key Cases Cited
- In re Baker, 593 F. App’x 416 (5th Cir. 2015) (unpublished; bankruptcy jurisdiction post-confirmation limited)
- Craig’s Stores of Tex., Inc. v. Bank of La., 266 F.3d 388 (5th Cir. 2001) (post-confirmation jurisdiction for plan implementation)
- In re Wood, 825 F.2d 90 (5th Cir. 1987) (arising under/arising in/related jurisdiction explained)
- Pacor, Inc. v. Higgins, 743 F.2d 984 (3d Cir. 1984) (definition of related to jurisdiction)
- Travelers Indem. Co. v. Bailey, 557 U.S. 137 (U.S. 2009) (enforcement of bankruptcy orders; interpretation authority)
- In re Galaz I, 480 F. App’x 790 (5th Cir. 2012) (earlier holding on offset and enforceability)
- In re Galaz II, 765 F.3d 426 (5th Cir. 2014) (adjudication of damages and jurisdictional issues in Segundo)
- In re Galaz III, No. 15-51194 (5th Cir. 2016) (remand regarding offset merits set forth in panel)