In re Colon
| Decision Date | 11 July 1989 |
| Docket Number | Bankruptcy No. 87-03126F,Adversary No. 88-0294F,87-03425F,88-0330F. |
| Parties | In re Migdalia COLON a/k/a Migdalia Santiago, Debtor. Migdalia COLON, Plaintiff, v. Royal HART, Chief Clerk, City of Philadelphia, Traffic Court, Howard Yerusalim, Secretary, Commonwealth of Penna., Dept. of Transportation and Edward Sparkman, Standing Trustee, Defendants. In re Fred J. SZOSTEK, Denise M. Szostek, Debtors. Fred SZOSTEK, Plaintiff, v. Royal HART, Chief Clerk, City of Philadelphia, Traffic Court, Howard Yerusalim, Secretary, Commonwealth of Pennsylvania, Department of Transportation, Edward Sparkman, Standing Trustee, Defendants. |
| Court | United States Bankruptcy Courts. Third Circuit. U.S. Bankruptcy Court — Eastern District of Pennsylvania |
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David A. Searles, Community Legal Services, Philadelphia, Pa., for debtors/plaintiffs, Migdalia Colon and Fred Szostek.
Howard M. Holmes, Charles W. Johns, Philadelphia, Pa., for defendant, Royal Hart, Chief Clerk City of Philadelphia Traffic Court.
Christopher Clements, Harrisburg, Pa., for defendant, Howard Yerusalim, Secretary Com. of Pa., Dept. of Transp.
Edward Sparkman, Philadelphia, Pa., defendant and Chapter 13 Standing Trustee.
Before me are two adversary proceedings that have been consolidated for trial by agreement of the parties. The complaints seek injunctive and declaratory relief, damages, and attorneys' fees arising out of the defendants' alleged violations of the Bankruptcy Code, 11 U.S.C. §§ 362, 525. That is, the debtors maintain that the defendants1 sought, postpetition, to collect traffic fines and to suspend their drivers' licenses. The debtors also seek relief for an alleged infringement of their civil rights, pursuant to 42 U.S.C. § 1983.
Trial was held on the matter and the parties have submitted posttrial submissions. Upon review of the evidence and legal arguments presented, I conclude that defendants did violate the automatic stay provisions of § 362(a).
Plaintiff Migdalia Colon filed her chapter 13 petition in bankruptcy on June 25, 1987. Prior to that filing, on April 13, 1987, three motor vehicle violation citations were issued to Migdalia Colon, citing violations of 75 Pa.C.S.A. §§ 3743(a) (), 3310(a) (), and 1312 (failing to notify PennDOT of changed registration data). See Plaintiff's Exhibit Request for Admissions, p. 4.2
Plaintiff Colon appeared in Philadelphia Traffic Court postpetition, on July 7, 1987, to challenge the three citations and attendant fines summarily issued in April, 1987. She apparently testified in that court to her belief that somebody else was driving with her license, or perhaps using her name, and that this other person had received the tickets then being attributed to her. The defense was rejected by Judge Morotto, who adjudicated her guilty of the traffic violations and imposed a fine of $435.50.3 N.T. at 37-38; posttrial Ex. P-4.
Subsequent to this adjudication, on July 27, 1987 Ms. Colon filed her chapter 13 statement and included therein this $435.50 fine. Also on that date, counsel for plaintiff notified Traffic Court of the plaintiff's June 25, 1987 bankruptcy filing, and advised the court that the automatic stay prohibited collection of the fine. See posttrial Ex. P-5. On or about August 19, 1987 Traffic Court received from the bankruptcy court a notice of the meeting of creditors and of the automatic stay. Posttrial Ex. P-6. Thereafter, on September 1, 1987, Traffic Court sent a letter to plaintiff Colon acknowledging receipt of the notice from Bankruptcy Court and requesting that she furnish Traffic Court with her motor vehicle license tag and operator numbers. Colon responded by telephoning that court and providing the requested information. Posttrial Ex. P-7; N.T. at 18.
On October 22, 1987, Traffic Court sent Colon a notice, which stated in pertinent part as follows:
Ex. E attached to Complaint.5 Counsel for PennDOT responded by letter of November 19, 1987, stating that, with respect to Migdalia Colon, "a review of your client's driving record, as of the date of this letter, reveals no present suspension or revocation of the operating privilege." Ex. H attached to Complaint.
Subsequently, on December 3, 1987, the Traffic Court sent Colon yet another notice, this one entitled "Final Warning," which stated in part:
Posttrial Ex. P-9.6
Evidence purportedly involving plaintiff Colon and an earlier issued traffic violation was submitted at trial by PennDOT. Exhibit Dept. 1 includes evidence of a violation of 75 Pa.C.S.A. § 1311(b) (), issued June 4, 1986 to one Migdalia Colon. Plaintiff Colon credibly testified that she did not receive this citation, and that the personal data on the citation's surrounding documents are not hers. However, it also appears from the evidence that defendants have taken no action against this plaintiff on the basis of this particular citation. Instead, the actions of which plaintiff complains all flow from the issuance of the three tickets in April, 1987.
Plaintiff Szostek was cited on May 16, 1987 for violating section 3323(b) of the Pennsylvania Vehicle Code for failing to stop at a stop sign. This violation resulted in a fine of $52.50. Posttrial Ex. P-15. Mr. Szostek and his wife filed a chapter 13 bankruptcy petition on July 7, 1987, and included the fine for that violation as a debt in the chapter 13 statement N.T. at 8.
By letter of July 13, 1987, Szostek's counsel advised Traffic Court of his bankruptcy filing and advised that, due to the effect of the automatic stay, "Traffic Court is obliged to cease all collection efforts with regard to this account." Posttrial Ex. P-16. Traffic Court wrote to these debtors on July 23, 1987, acknowledging "a bankruptcy notice from the United States Bankruptcy Court," and asking debtors to furnish their license plate and operator numbers; reply was made by mail. Posttrial Ex. P-17; Dep. of Goldberg, 40-42.
At some point thereafter Traffic Court apparently notified PennDOT that Szostek had failed to respond to his May, 1987 citation, thus setting in motion the procedures by which PennDOT could suspend his driver's license.7 PennDOT sent Szostek a notice on November 6, 1987 of a scheduled suspension of his driver's license, which suspension was to occur on November 27, 1987. This notice lists an amount owed of $63.00,8 and states that he may do the following to prevent suspension:
Exhibit Request for Admissions, attachment P-13.
Szostek's counsel wrote to PennDOT on November 13, 1987, notifying it of the bankruptcy and automatic stay, and requesting PennDOT to rescind the suspension notice. Exhibit Complaint and Ex. E attached thereto. PennDOT responded by its letter of November 19, 1987, stating that Szostek had received this official notice of a suspension pursuant to 75 Pa.C. S.A. § 1533, for failing to respond to the criminal charge of violating section 3323(b) of the Vehicle Code, and further stating that this suspension Ex. Complaint, Ex. I attached thereto.
Szostek went to Traffic Court on Monday, November 23, 1987,9 where he informed court personnel of his chapter 13 bankruptcy. According to his testimony he was directed to see Mrs. Goldberg,10 but she was not present; another clerk offered to help him. He showed this unidentified clerk his bankruptcy papers, but "she said, well, it doesn't matter if you declare bankruptcy, you still have to pay your fine." Plaintiff asked, N.T. at 12. Therefore, in order to not lose his driving privilege for any amount of time he paid the fine, plus costs. Posttrial Ex. P-19. Szostek's counsel enclosed a copy of the receipt for this payment to PennDOT in a letter dated November 24, 1987, stating that Szostek paid the fine ...
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