In re: Alonzo Ramirez and Mary L Ramirez
Filing
7
OPINION AND ORDER. The Court SUSTAINS Appellant's second and third issues and VACATES the "Memorandum Opinion and Order on Motion for Invocation of the Adversary Rules" entered on 4/20/15, as having been entered contrary to a final judgment issued by theis Court and principles of res judicata. (Signed by Judge Nelva Gonzales Ramos) Parties notified.(lcayce, 2)
I THE UN I
N
TED STA TES D I
STRI COU RT
CT
FOR THE SOUTH ERN D I
STRI OF TEXA S
CT
. CORPU S CH RI
STIDI SI
VI ON
ALON ZO AND M ARY R AM I
REZ,
APPELLEES
CI L ACTI 2:
VI
ON 15CV 194
BAN K RU PTCY CA SE 112061
4
LARRY W I
LSON ,
A PPELLAN T
O PI I N AND O R DER
N O
Aln o a M ay Ra rz ( bo s a e j me t de tr on a mo tr
o z nd r mie De tr) r udg n bo s
neay
j gme tr s tng fo a t - ry a ves r p oc e i ta Lar W is ( is n)
ud n e uli rm wopa t d ray r e dng h t ry lon W lo
bou ta ans te Tha j gme wa a pe ldt t sCou ta da fr di Ramie
r gh g i t h m. t ud nt s p ae o hi r n fime n
rz
v Wis ,No.2: 3 c 1 ( D.Te De 1 ,201 ) ( E.2 41 . De o s di no
. lon
1 - v- 28 S.
x. c. 3
3 D. - )
bt r d t
m pt
a pe lti Co tsj gme ta t matri n w tna. l fact t entie banl z cy
p a hs ur' ud n nd he te s o s l n , he r
c e i ûnal Se D . 2-1 2as s
. e E. 7, 20.
Lo a r t j dg nt be a fna, De t s b o ht a po tj dg nt
ng he he u me
c me i l b or r ug
s-u me
pr eedi s eki t a y a t r pa y' s te e pa e t W is as a cr t
oc ng, e ng o ppl
hid rt s etl m nt ym nt o l on
edi
a is t i o j gme .Th Ba lr t y Co r is e iso de pr li ng t is
gan t her wn ud nt e ntup c u t s u d t r r oca mi he sue
of of s t under t one s ts acton r e t be an ope one and or r ng t pa tes t
fe
he
- a i f i ul o
n
de i he r i o
pr
opos a dicover pl a s dulng or as a m a t contnui w ihi t pror
e
s
y an nd che i
der
ter
i ng t n he i
a r ar pr
dve s y ocee ng.
di
The j gme t c e t r W i o h sa pe ld,c mpl i ng t t t e Ba kr t y
ud n r dio l n a p ae o ani ha h n up c
s
Cour er e bot s t i y a pr
t r d h ubsantvel nd ocedur l i cons derng t Debt s'cl i t an
aly n
i i he
or a m o
1
o f e. Thi Co thol t tt j gme ti r sj i aa a t Ba r t y Co r d d
fs t s ur ds ha he ud n s e ud c t nd he nk up c u t i
no ha j idci t e tran a ii a p oc e i s r ltd t t a ve sr
t ve urs iton o ne ti ddton l r e dng eae o he d ray
poc e ng a d isEn lj dg nt Ac o dngy,t Co tVACATES t Ba
r e di n t a u me . c r i l he ur
he nkup c
ty
Cour ' dM e or
ts û m andum Opi on a Or on M oton f l
ni nd der
i or nvoc ton of t A dver ar
ai
he
s y
Ruls'D. 2- )f lc of u idcina b c u eoft rsj iaaba.
e '( E. 27 or a k j rs ito nd e a s he e udc t r
JU RI I
SD CTI N
O
Or i rl j s din t aj iae ba r pty-eae matx i c nfre o
dnaiy, midi o o dude t nk u c rltd tes s o e rd n
ba r p c c u t pu s n t 28 U. C. j 1 a t c urs sa ng o d r o
nk u t y o rs rua t o
S.
57 nd he o t' tndi r e f
r f r nee. Appe s c
eee
al ompl i ng of a bankr c courts r i ar t n a
ani
upt y
' ulngs e he ppea a e t
l bl o
t e dititc r und r28 U. C.j 1 Se to 1 c ntmplt s a a pe la ii i
h src ou t e
S.
58. c in 58 o e ae n p a rsng n
t wa : ( ) fo a fn lj dg n o t ba u c c u t a d ( ) fo a
wo ys 1 r m
ia u me t f he nkrpty o r; n 2 r m n
i e l ut y or wih l ve oft bankr c cour t appeal
nt roc or der t ea
he
upt y
to
.
Thsi n ta a a fo afna j gme tbe a et ta a ha ar a r is
i s o n ppe l rm i lud n c us ha ppe l s le dy un t
c u s a t o d ra is r lt st po t udg n pr c e i gs Tot e t ntt a t e
o r e nd he r e t s ue ea e o s- me t o e d n . he x e h t h
j
or c be c ac erzed as i e l or i conne i w ih i tatng a ne pos der an
har t i
nt rocut y n
cton t nii i
w
t
j dg n pr e di a a pe lrq r sla ofc ur.Th rc r d sno r fe tt t
u me t oc e ng, n p a e uie e ve o t e e o d oe t elc ha
t Appe l nt W is tl d a m oton f l
he
la , l on, i e
i or eave of cour t a
t o ppeal Pur ua t Fede al
.
s nt o
r
Ba r p c Rul 8 4( , he Co r te t t n ie ofa pe la am o i n f rla t
nk u t y e 00 d) t
u t r as he otc
p a s
to o e ve o
a ala GRANTS t m oton. To t e e t tt Bankr cy Cour di nothave
ppe nd
he
i
he xt nt ha he
upt
t d
j rs ito t e tr a y o d r t t c u d be c nsr e a a c lae a at c o t
u id c in o n e n r e ha o l
o tu d s o ltr l ta k n he
p e o j gme t t sCo tha j rs ito pu s n t t Al Wrt Ac,28 U. C.
rvius ud n, hi ur s u idcin rua t o he l is t
S.
j1 t is al isn c sayo a r praei ado t sCo tsj idito
651 o sue 1wrt e e sr r pp o it n i f hi ur' urs cin.
TH E PR O CEED I S
NG
W is np c s dah fo De tr t theltrla dha be n s be tdt
lo urha e ome r m bo s ha ae e me d e u j ce o
w a e dam age,r l aks w ood r t a m ol - cont a y t D e or ' r es nt tons
tr
oof e ,
o , nd
d
r r o bt s epr e a i .
W is fld s i i sae c r a ans De o s a d a nu rofo h r (ncudi boh
lon ie ut n tt ou t g i t bt r n
mbe
t e s i l ng t
r at sa t i pe t r. D. 2 3 Pro t ti li t sae c ul s t De o s fld
e lor nd he ns c o ) E. - 3. i r o ra n he tt o ' ui, bt r ie
t
f r i unde t Unied St t s Ba upt y Code. The r la lt on W is s
or elef
r he
t
ae
nkr c
i i biiy
l on'
a lg to offa a d vi lto oft Te a De e tve Tr de Pr ci e Ac (
le a ins r ud n o ai ns he x s c p i
a
a tc s t DTPA)
w a det r i
s e m ned by t Unied St t Bankr cy Court i an adve s y pr edi
he
t
a es
upt
n
r ar oce ng
r a ed t t rCha e 7 cas
el t o hei
pt r
e.
W h l De o s me to d i t i An we ( . 2 3 t a t r we e t l
ie bt r n i ne n her s r D E. - 3) h t he e r weve
spaae dee a t i t sae c ur s i,t y di not se t j n a o t s
e r t fnd ns n he tt o t ut he d
e k o oi ny f ho e
def nt , di not s ek t na e t m as r ponsbl t r pa tes i t adve s y
enda s d
e o m he
es
i e hid ri n he
r ar
pr c e ng a di no s e a y j gme t rgadi c nrbuin, o fe, o
o e di , nd d t e k n ud n e r ng o ti to fs t r
pr portonat la lt The Ba upt Cour r ed agai tD ebt s as es ed da a
o i e i biiy.
nkr cy
t ul
ns
or , s s
m ges
a ns t m ,i pos a cons r tve tus,a hel t tt de w as notdicha geabl
gai t he m
ed
tuc i r t nd d ha he bt
s r
e
i ba upt
n nkr cy. Debt s di not c pl n t t Ba upt Cour att ttm e t t t
or d
om ai o he nkr cy
t ha i ha he
j g nts ou d h ve ma e a pr vii n f r o fetng s tlme t c e t o j g n s
ud me h l a
d
o so o fs ti e t n r dis r ud me t
e
pa d by ot pa tes.
i
her r i
Tha j gme twa he a ae t t sCo t Non oft is e o a a
t ud n st n ppe ld o hi ur.
e he su s n ppe l
addr s d a concer about conti i pr
es e ny
ns
rbuton, opori t r s
tona e e pons biiy, s tem ent
i lt etl
cr t ofs s or t one- a i f ton r e. Thi Cour t aflm ed t Ba upt y
edis, f et , he
s ts ac i ul
s
t hen tr
he nkr c
Co r' j dg n .Se Ramie v Wis n,No.2:3-v- 28 ( D.Te De 1 ,201 )
u ts u me t e
r z . lo
1 c 1 S.
x. c. 3
3.
r s
Thi Co tsj gme wa n ta ae a i a fna resol i of t t contover y.
s ur' ud nt s o ppe ld nd s i l uton ha
Nohi i t tj gme tprvie frce t a ans t j gme tf a y pa nt
t ng n ha ud n o d s o rdis g i t he ud n or n yme s
m ade by t def
he endant i t sat c ts t
s n he t e our ui.
Beor t sCo tatr d t Ba k upc Co t ud nt De tr be n t i
f e hi ur fime he n r ty ur j gme , bo s ga her
ef or t ge i or a i on s tem e st tW is m a ha obt ned i or t of s t
f t o t nf m ton
etl nt ha l on y ve ai
n der o f e
t am ount pai i a
he
s d, f ny. Thei fr t m oton w as tl on Sept ber 23,2013,r tng
r is
i
s ed
em
ecii
t t t y had l m ed i M a of 2013 about a pos i e s tl m e iabout a yea ago.'
ha he
ea
n
y
s bl e te nt d
r
'
D . 2- A hera hearng i w hi couns f Debt s adm it t no of s had bee
E. 7.
i n
ch
el or
or
ted hat
f et
n
pl d i t cas pr ousy, t Bankr c Courtde ed t m oton on Oct
e n he e evi l he
upt y
ni he
i
ober 21
,
201 D . 2-1 .D . 2- p.7.
3. E. 3, E. 44,
I t Or r t Bankr pt Cour r t t tD e or di notfl m otons unde
n hat de , he
u cy
t ecied ha bt s d
ie
i
r
Fe r Rul ofCi lPr
de al es
vi ocedur 59 or 60 and had notde ons r t a e de t
e
m t a ed ny vi nce hat
w oul m ee t r pec i bur ns of pr
d
t he es tve
de
oof under t e r es D . 1 p. 2. On
hos ul . E. 3,
D ec ber 1 201 t Ba u cy Cour a oved a cas di ti i f om t es a e i
em
6, 3, he nkr pt
t ppr
h srbuton r he t t n
t a
he mountof$1 000 f t esat sla lt on W is spr ofcl m .TheChapt r
90,
or he t e' ibiiy
lon' oof
ai
e
7 Tr t fl d hi Fi Re ton M a 8,201 a t Bankr cy Cour or r d t
usee ie s nal por
y
4, nd he
upt
t de e he
fnaldit i i oft esat a r eas t Cha er7 Tr t on J 24,201 D .
i
srbutons he t e nd el ed he
pt
us ee
une
4. E.
2- 217, 20.
D e or di not r w t r ef or t obt n a of s t untlJ
bt s d
ene hei f t o
ai n f e
i une 20,201 w hen
4,
t y fl a m oton i t bankr cy pr edi s ng a de er i ton t t t
he ied
i n he
upt
oce ng eeki
t m na i ha he
j g nta i tt m wa s tsi d by vit o s tlme sfo o he de e da s a
ud me gans he
s a ife
rue f ete nt r m t r f n nt nd
r s i a or rr rng W is t i ue a r eas D . 2- Afert Bankr cy
eque tng n de equii
l on o ss
el e. E. 19. t he
upt
4
Cour deni t t m oton as havi bee f ld i t w r
t
ed ha
i
ng
n ie n he ong cas , Debt s fl a ne
e
or ied
w
moton f i
i or nvoca i oft a s y r es a t obt i a s hedulng or r D . 2ton he dver ar ul nd o a n c
i
de . E. 22.
By M e or
m andum Opi on a Or ,t Ba upt y Cour gra ed t m oton,
ni nd der he nk c
t nt he
i
hol ng t t Debt s' m e i of t ot def
di ha
or
nton
he her endant i t s a e pr
s n he t t oceedi w a
ng
s
s fci t r s t i s ofof s ta t tt Fi t Cicui em pl a one- a i f i
ufi ent o aie he s ue
f e nd ha he fh r t
oys
s ts acton
poiy,ctng Ho d v Ge e alCabl Co p. 4 F. 3 ,35 ( t Ci.1 2) Th
lc ii
war . n r
e r ,67 2d 51 8 5 h r 98 . e
cour t or e t s i s on ofa pr pos s hedulng or f di co r and t i l
t hen der d he ubm s i
o ed c
i
der or s ve y
ra.
D . 2E. 27.
W is now a al t or satng t ee i ues:
lon
ppe s hat der t i hr ss I
1.The Ba upt y Cour er e i fndi t t t Debt s
nkr c
t r d n i ng ha he
or
s fci nty pl
uf i e l eaded or r s t is
ai ed he s ues of of s t or
fe
r
ecoupm ent i t r ans e by afim a i de e e or
n hei
w r
fr tve f ns
ot wi e.
her s
2. The Ba upt Cour e r i fndi t t D ebt s
nkr cy
t r ed n i ng hat he
or
s d be alow ed a c edi i t a ountofa s tem ent
houl
l
r t n he m
ny etl
pa d t Lary W is by ot r def nda s
i o r
l on
he
e nt .
3.The Ba upt Cour er ed i pe m itng t i
nkr cy
t r n r ti he nvoc i of
aton
t Ad ray Rue t c ndu tpos j me tdic vey
he ve sr ls o o c t udg n s o r
ofprj me tf cs
eudg n a t.
D . 2- 2E. 29, 30. The e is s al r r a det r i i ofhow and w he t is of
s s ue l equie
e m naton
n he s ue
s te e c edis m us be r s whi i a quesi r di t na ur of adver a y
etl m nt r t
t
aied, ch s
ton egar ng he t e
sr
prc e igsa yi saelw a t rsj iaae fc ofter s li j gme t
o e dn ppl ng tt a nd he e udc t fe t h e utng ud n .
l Th s is e a en tie t a t t is e sae i W i o sBre b t r t eis e p nnitd b t eBa k u ty
e e s u s r o d n i l o he s u s t td n l n' it u a e h s u s e te y h n r p c
c
s
Cour' Or r D. 2ts de . E. 29.
5
DISCU SSI N
O
A .The N at e oft A dver ar Proceedi and St e Law
ur
he
s y
ng
at
W he D e or tl f ba tupt r i underTit 11 oft Unied St t C ode,
n bt s i ed or nlr cy elef
te
he t
a es
te c nfre o t fd rlc urj rs ito t a j diaet i la lt t W is n.28
h y o er d n he e ea o tu idcin o du c t her ibiiy o lo
U. C.j 1 ,1 4.W is n' c am,whih s ug a c tu tvetus a i tDe t s
S. j 57 33
lo s li
c o ht onsr ci r t gans b or '
a s s a i uded an exce i f om t r dicha ge, w as a l w s t t had t be
s et nd ncl
pton r
hei s r
a ui hat
o
pr ecut as a a r a y pr edi Fe Ba
os ed
n dve s r oce ng. d. nkr.Rul 7001. A dver a y pr edi
e
s r oce ngs
ar handl i lr pa t i a m a
e
ed, n a ge r , n
nner sm ia t a ot r f alltga i usng t
i l r o ny he eder ii ton, i he
Fe r lRulsofCi lPr c d r . Se Fe R. nkr Pr . 7 ,e s q. i o po a i
de a e
vi o e u e e d. Ba . oc, 001 t e (nc r r tng
mos oft f d r lp o e ur lr lsit t ba r pty r e )
t he e e a r c d a ue n o he nk u c uls .
W is s a
lon' dver ar pr
s y oceedi a r s li j me t wee ba e o sae
ng nd e utng udg n
r s d n tt
s t i 1 cl m s f c m on l w faud a D TPA vi atons t t s i fed t
ubsantve aw ai
or om
a r
nd
ol i
ha ats i he
Ba u c Code r r e s f exce i W is s cl m fom D ebt s'ba upt y
nkr pt y
equiem nt or
ptng l on' ai r
or
nkr c
dic ge. D . 2- D e or ,now i
s har
E. 34. bt s
nvoki t one- ats ac i r e,ar cl m i t t
ng he
s i f ton ul e ai ng ha
t ar entted t an of s tor dola - or dola r ton oft r la lt t W is by
hey e il o
fe
l r f - l r educ i
hei i biiy o l on
a ount pai by ot r who a l
m
s d
he s
legedl pa tci t d i t s et a ac i
y ri pa e n he am r ns ton.
The one- ats ac i r e and t c
s i f ton ul
he once of of s tbot r quie t D e or and
pt
fe
h e r hat bt s
t e w ho ha pa d W is s tl enta ount ha a com m on la lt f t dam ages
hos
ve i
lon e tem
m
s ve
i biiy or he
a is . Se ge r l Stwa tTil Gu .Co.v e ln 8 2 S. .d 1 7 8 ( x.
t s ue e ne al e r te ar
y,
.Str ig, 2 W 2 , - Te
1 )(h lmi oft o -aif cin r e a le t asnge ij y,e n t ug t
991 te i t he nes tsa to ul ppis o i l nur ve ho h he
ij y ma ha be n br u t a utby s ve a fe e t wr ngf l a t) dfe on
nur y ve e o gh bo
e r ldif r n o u c s ,mo d
6
ohe gr nd ,To y Gulo M ot r L L. v Ch pa,21 S. .d 29 ( x.20 ) 1
t r ou s n
l
os
P. . a
2 W 3 9 Te
06 ; 1
U. C. j55 ( efni o fe a ivol ng amu ua de )
S. A. 3 d i ng fs t s n vi
t l bt.
The m ut lt of oblga i i not a gi n m er y beca e t s tlng pary w a
ua iy
i ton s
ve
el
us he e ti
t
s
s f dam ages r at t t s e t a ac i
ued or
el ed o he am r ns ton. A nd m ut pari pa i i causng
ual tci ton n
i
t dam ages does notne s r l m ean t tea act i r ponsbl f a equa a ount
he
ces a iy
ha ch or s es
i e or n
lm
o i aj i a s v r lma r
r n ont nd e e a nne.Whehe a ho t c pe c pat sr s nsbiiyf r
t r nd w o a a h ry' epo i lt o
t j n l c us d da ge r q r sa c ur t c mpa e t c ams a a s s t d g e
he oity- a e ma s e uie o t o o r he l i nd s e s he e r e
off ul a conce ofac i
a t nd
rt
ton.
Thi com par tve pr s r quies t applc i of sat s t ntve l w as t
s
ai
oces e r he
i aton
t e ubs a i a
o
w het a how t r duce one pa t s labiiy t t c ai antdue t t ac s ofa her
her nd
o e
ry' i lt o he l m
o he t
not
pa t
ry. Feder cour s t
al
t hus a y t Texas pr
ppl he
opor i e la lt s at e a is
tonat i biiy t ut nd t
pr
ocedur com pone s
al
nt .
TheEr e docti r r t a f r cour appl s a e 1 w
i
rne equies hat ede al
t
y tt a
t cas notgover by f allw . û-he Ere c e and t
o es
ned
eder a
çl
i as
he
Supr m e Cour de sons f l i i appl i f r l
e
t ci i
olow ng t
y n ede a
q sinj rs ito a we1' t h r t saer er te t a
ueto u idcin s 1. û ee he tt ul el cs
'W
s t ntve sa e polcy noti conti w ih t pl n m ea ng
ubs a i t t
i
n
lct t he ai
ni
oft f alr e,t t s a e r e i t r e of deci on
he eder ul hen he t t ul s he ul
si
and s
houl be a i d unde t t r s of t Er e docti '
d
pple
r he e m
he i
rne.
'
Court i t s cic t i udi t s c t ha f
s n hi r ui, ncl ng hi our, ve ound t t
ha
t e i no conti t be ween des gna i r ponsbl t r
her s
lc t
i tng es
i e hid
pa te u r g-x.Ci Pr c & Re Co e j 33. 4 a
ris nde 'e v. a .
l
m. d q
00 nd
( d r lRu e ofCi lPr c d e Rul 1 b c us Rul 1
Fe e a l s
vi o e ur ) e 4 e a e e 4
go r s j ni t id pa te , no d sg tng t m a
ve n oi ng h r ri s t e i nai he s
rs
e ponsbl f t pur e of lm ii t labiiy and
i e or he
pos
i tng he i lt
da agesoft ew ho ar pari t t s t
m
hos
e tes o he ui.
Ar i v Do k LLC,No. V. 1- - 07 2 1W L 1 0 ,*3 ( D . x. a 4
ve . de a,
CI A. - 09 1 6, 01
1
75 242
S. Te M y ,
2 1 ( s n ha, . ( ia insomitd)
01 ) Ro e t lJ) ctto
te .
The pr
opori t la lt sat e apples t any ca e of ac i bas d on t tor
tona e i biiy t ut
i o
us
ton
e
or
vilto oft eDTPA.Te Ci Pr c & Re . e j3 001 I pe misade e n '
o ai ns h
x. v. a .
m Cod 3. . t r t
fnda ts
la lt t t pl ntf t be r duced by t dam ages owed orpai by ot rla e pari
ibiiy o he ai if o
e
he
d
he i bl
tes.
Thos r s nsbl t r pate aeno rq r dt bej i d i t a to ,butt y mus
e epo i e hid ris r t e uie o one n he cin
he
t
be na ed i or r f t cour t as es t pe ce age oflabiiy atrbut bl t ea
m
n de or he
t o s s he r nt
i lt t i a e o ch.
I sj 3 00 a . Co e u n l ,t e s ul be f r l d sg t d o orb f r t 6 t
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