527 B.R. 328
Bankr. E.D. Wis.2015Background
- Debtor (Christopher Trentadue) and former spouse divorced in 2007; post‑divorce custody, placement, and child support disputes generated extensive family‑court litigation.
- State court found debtor engaged in “over‑trial” related to high‑school enrollment and other custodial disputes, which protracted proceedings and increased opposing counsel’s fees.
- State court ordered debtor to pay $25,000 to Attorney Julie M. Gay (representing the former spouse) for attorney’s fees, payable by May 15, 2013.
- Debtor filed Chapter 13 on July 23, 2013 and did not pay the ordered amount; Gay filed a proof of claim asserting priority as a domestic support obligation (DSO) under 11 U.S.C. § 507(a)(1)(A).
- Debtor objected, arguing the fee award was punitive litigation sanction (not “in the nature of” support) and therefore not a DSO; state appellate review affirmed the award and higher courts denied further review.
Issues
| Issue | Gay's Argument | Trentadue's Argument | Held |
|---|---|---|---|
| Whether the state‑court attorney‑fee award is a domestic support obligation (DSO) entitled to priority under §507(a)(1)(A) | Fees arise from litigation over children’s custody/welfare and therefore are "in the nature of" support benefiting the spouse/children | Award was intended to punish or deter debtor’s litigation misconduct (overtrial) and thus is not "in the nature of" alimony/maintenance/support | Allowed claim as a priority DSO: fee award relates to custody litigation harming children and functions to compensate/protect the children/spouse, not pure punishment |
Key Cases Cited
- In re Jones, 9 F.3d 878 (10th Cir. 1993) (attorney‑fee obligation in custody action can be "in the nature of" support)
- In re Rugiero, [citation="502 F. App'x 436"] (6th Cir. 2012) (attorney‑fee award in custody dispute deemed a DSO because it benefits the children and allows vindication of rights)
- In re Lopez, 405 B.R. 382 (Bankr. S.D. Fla. 2009) (state‑court fee award based on bad‑faith litigation misconduct not a DSO)
- Estate of Mayer v. Hawe, 303 B.R. 375 (E.D. Wis. 2003) (attorney‑fee award in probate deemed punitive and not a DSO)
- In re Johnson, 445 B.R. 50 (Bankr. D. Mass. 2011) (fee award in custody litigation nondischargeable as DSO when intended to protect children from debtor’s injurious conduct)