midpage
Projects
Sign in to see your projects.
502 B.R. 615
Bankr. N.D. Ga.
2013
Read the full case

Background

  • Plaintiffs seek dischargeability of debts awarded in a Georgia state court Final Fee Order (2011) against Mrs. Rackley in a child custody dispute.
  • Final Fee Order sanctions include $130,561.14 in attorneys’ fees and costs against Mrs. Rackley and her attorney, Laura E. Austin, for frivolous claims and expanded proceedings.
  • The state court also awarded Mr. Rackley $2,474.15 for custody-related fees and expenses and guardian ad litem Sally Cannon $11,865.00 for GAL services, each weighed by financial capacities.
  • The adversary proceeding was filed in 2012; the court denied some summary judgment motions for procedural reasons but held a hearing on August 28, 2013.
  • The court analyzed whether these state-court sanctions and guardianship awards are nondischargeable under 11 U.S.C. §523(a)(5), §523(a)(15), or §523(a)(6), and granted/denied relief accordingly.
  • Conclusion: partial grant and partial denial of Plaintiffs’ summary judgment request; several debts found nondischargeable under §523(a)(5) or §523(a)(15), while §523(a)(6) claim denied.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether sanctions and related fees are dischargeable as domestic support Rackley argues they are non-dischargeable under §523(a)(5) as support Rackley contends guardianship and related sanctions fall outside §101(14A) and are not ‘support’ Partially resolved: some sanctions/fees nondischargeable under §523(a)(5) as support.
Whether guardian ad litem fees constitute domestic support Cannon’s GAL fees are in the nature of support for the child GAL fees are not inherently supportable under §101(14A) GAL fees awarded as guardian ad litem are nondischargeable under §523(a)(5).
Whether sanctions under O.C.G.A. §9-15-14(b) are nondischargeable under §523(a)(15) or other provisions Sanctions were incurred in a domestic-relations dispute and qualify under §523(a)(15) Pre-BAPCPA and state-law sanctions may be dischargeable absent §523(a)(5) applicability Debts totaling $69,226.32, $53,335.09 and $8,000 are nondischargeable under §523(a)(15) (per order); the Rackleys’ §523(a)(5) claim denied as to these amounts.
Whether §523(a)(6) claim is warranted given willful/malicious injury standard Rackley seeks §523(a)(6) nondischargeability for willful injury No clear evidence of intent to injure; conduct was frivolous but not shown to intend injury Denied; §523(a)(6) claim rejected.

Key Cases Cited

  • Celotex Corp. v. Catrett, 477 U.S. 317 (U.S. 1986) (summary judgment burden and burden-shifting standard)
  • Anderson v. Liberty Lobby, 477 U.S. 242 (U.S. 1986) (material facts must be judged in light most favorable to non-movant)
  • Exxon Mobil Corp. v. Saudi Basic Indus. Corp., 544 U.S. 280 (S. Ct. 2005) (limits on reviewing final state-court judgments)
  • In re St. Laurent, II, 991 F.2d 672 (11th Cir. 1993) (collateral estoppel elements under Georgia law apply in dischargeability)
  • In re Harrell, 754 F.2d 902 (11th Cir. 1985) (definition of ‘in the nature of support’ under §523(a)(5))
  • In re Strickland, 90 F.3d 444 (11th Cir. 1996) (federal law governs whether an obligation is ‘in the nature of support’)
  • Hamilton v. Lanning, 560 U.S. 505 (2010) (statutory interpretation caution; legislative intent governs)
Read the full case

Case Details

Case Name: Rackley v. Rackley (In re Rackley)
Court Name: United States Bankruptcy Court, N.D. Georgia
Date Published: Oct 18, 2013
Citations: 502 B.R. 615; Bankruptcy No. 12-64924; Adversary No. 12-5405
Docket Number: Bankruptcy No. 12-64924; Adversary No. 12-5405
Court Abbreviation: Bankr. N.D. Ga.
Log In
    Rackley v. Rackley (In re Rackley), 502 B.R. 615