480 B.R. 70
Bankr. D. Mass.2012Background
- Angelo filed Chapter 7, later converting to Chapter 13, in a bankruptcy proceeding.
- Robinson and Peck were awarded payments (Robinson $7,500; Peck $37,252) in a Probate Court Further Judgment of Divorce (Aug 20, 2009).
- Peck filed a Probate Court contempt action to enforce the awards; Contempt Judgment entered Aug 18, 2010, including jail time and a $53,898.68 total obligation.
- Angelo argued the Probate Court proceedings violated the automatic stay; he later sought relief from the Contempt Judgment in the Bankruptcy Court.
- Bankruptcy Court determined the Contempt Judgment is valid and enforceable except to the extent it would enforce non-estate damages from Robinson’s watch, cookbook, and doll collections, and that Angelo is judicially estopped from seeking § 362(k) damages.
- The Court addressed whether the Contempt Judgment should be void due to stay violation, the scope of § 362(b)(2)(B), and the availability of damages under § 362(k) and judicial estoppel.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Contempt Judgment violated the automatic stay. | Angelo contends stay violation; judgment void. | Robinson/Peck argue stay exemption applies. | Contempt judgment not stayed except portion relating to non-estate damages. |
| Whether § 362(b)(2)(B) exempts the Contempt Judgment from the stay. | The Awards are or are not domestic support and collection is from non-estate assets. | The § 362(b)(2)(B) exception applies to collection from non-estate sources; contempt falls within collection. | Contempt is exempt to the extent it enforces non-estate domestic-support-like components; limited to pension-related recovery. |
| Whether Peck Award is a domestic support obligation for § 362(b)(2)(B). | Preclusive dischargeability ruling should establish it as support. | Dischargeability ruling did not necessarily mean Peck Award is DSOb. | Peck Award is a domestic support obligation in its entirety due to the prior § 523(a)(5) judgment and chapter 13 context. |
| Whether Robinson Award is a domestic support obligation and to what extent. | All or part of Robinson Award constitutes support. | Only portions may be support; some parts are not. | Robinson Award is a DSOb to the extent of tax refund ($1,100) and applicable clothing portion; remainder not DSOb. |
| Whether damages under § 362(k)(1) are available and whether judicial estoppel applies. | Angelo seeks § 362(k)(1) damages; also asserts damages due to stay violation. | Robinson/Peck challenge damages; credibility issues; estoppel defenses. | Angelo is judicially estopped from § 362(k)(1) damages; damages award denied due to lack of proof and estoppel. |
Key Cases Cited
- Guay v. Burack, 677 F.3d 10 (1st Cir.2012) (judicial estoppel and bankruptcy notice issues discussed)
- In re Macy, 192 B.R. 802 (Bankr.D.Mass.1996) (domestic support interpretation in bankruptcy)
- In re Michaels, 157 B.R. 190 (Bankr.D.Mass.1993) (factors for determining DSOb in bankruptcy)
- In re Johnston, 321 B.R. 262 (Bankr.D.N.M.2005) (collection includes enforcement by contempt; § 362(b)(2)(B) scope discussed)
- Payless Wholesale Distribs., Inc. v. Alberto Culver (P.R.) Inc., 989 F.2d 570 (1st Cir.1993) (bankruptcy stay and omission consequences in discharge/DSOb contexts)