466 B.R. 572
1st Cir. BAP2012Background
- Slabicki was president and sole shareholder of BECR, which BECR and Gleason contracted for electrical work and invoicing ran through BECR’s corporate account.
- Gleason filed a small claims action naming BECR (and, at court direction, Slabicki) to collect for BECR’s work, resulting in a default judgment against BECR for $2,086.10.
- After BECR failed to appear at a payment review, the court issued a capias directing arrest of the judgment debtor, BECR, noted as Slabicki.
- Carp, acting as Gleason’s agent and a constable, arrested Slabicki at his home; the subsequent hearing produced no further action on the capias.
- Slabicki filed a Chapter 7 petition; he listed Gleason as an unsecured creditor and BECR as a codebtor on Schedule H.
- Slabicki pursued an adversary proceeding under § 362(k)(1) for alleged automatic stay violations; the bankruptcy court found no stay violation and dismissed the case. The Panel affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Was there a stay violation when capias was executed? | Slabicki | Gleason/Carp | No stay violation; actions targeted the corporation, not Slabicki. |
| Was the debt owed solely by the corporation or also by Slabicki personally? | Slabicki | Gleason | Debt was owed by BECR, not Slabicki personally. |
| Does the automatic stay extend to actions against Slabicki in his corporate officer capacity? | Slabicki | Gleason | Stay did not extend to BECR or to Slabicki personally in corporate capacity. |
| Did Massachusetts Chapter 224, §§16 and 18 apply to small claims capias enforcement? | Slabicki | Gleason | State procedures were not misapplied to create a stay issue; res judicata/Rooker-Feldman bar relief. |
Key Cases Cited
- In re Heghmann, 316 B.R. 395 (1st Cir. BAP 2004) (damages standard for stay violations; final appealable orders)
- In re Quinones Ocasio, 272 B.R. 815 (1st Cir. BAP 2002) (legal questions reviewed de novo in stay context)
- In re Panek, 402 B.R. 71 (Bankr. D. Mass. 2009) (stay as breathing space; dual mandate)
- In re R & G Fin. Corp., 441 B.R. 401 (Bankr. D.P.R. 2010) (extension of stay via injunctions; unusual circumstances)
- In re Bora Bora, Inc., 424 B.R. 17 (Bankr. D.P.R. 2010) (extension of stay under §105(a) by injunctions)