In re Dervos, Bankruptcy No. 82 B 11763
Decision Date | 25 January 1984 |
Docket Number | Adv. No. 83 A 1673.,Bankruptcy No. 82 B 11763 |
Citation | 37 BR 731 |
Parties | In re George and Dena DERVOS d/b/a Athenaikon Hellenic American School, a/k/a Athenaikon School, Debtors. Ruth SWAN a/k/a Betty Mae Swan, Elizabeth Seimenis, Elaine Stryski and Lynn Jacobson, Plaintiffs, v. George DERVOS, Defendant. |
Court | U.S. Bankruptcy Court — Northern District of Illinois |
John H. Redfield, Chicago, Ill., for debtor/defendant.
Meyer H. Weinstein, Chicago, Ill., for plaintiffs.
This cause comes on to be heard upon the complaint to lift the automatic stay filed by RUTH SWAN, a/k/a BETTY MAE SWAN Swan, ELIZABETH SEIMENIS Seimenis, ELAINE STRYSKI Stryski and LYNN JACOBSON Jacobson, represented by MEYER H. WEINSTEIN, in the bankruptcy proceeding of GEORGE and DENA DERVOS, d/b/a ATHENAIKON HELLENIC AMERICAN SCHOOL, a/k/a ATHENAIKON SCHOOL, Debtors represented by JOHN H. REDFIELD, the court having heard testimony and reviewed the evidence and memoranda of law submitted by the parties, and being fully advised in the premises,
The Court Finds:
1. The Debtors, as individual proprietors, were engaged in the operation of a school known as the ATHENAIKON HELLENIC AMERICAN SCHOOL and employed Swan, Seimenis, Stryski and Jacobson as teachers at the school for a period during 1982 prior to the commencement of the bankruptcy proceeding.
2. On September 3, 1982, Debtors filed a petition under Chapter 13 of the Bankruptcy Code. Objections to confirmation of the Chapter 13 Plan were filed by the FEDERAL DEPOSIT INSURANCE COMPANY, THE DES PLAINES BANK, and AMERICAN NATIONAL BANK, all creditors of the estate.
3. On March 2, 1983, the standing Chapter 13 Trustee, CRAIG PHELPS, filed a motion to dismiss this proceeding for unreasonable and prejudicial delay pursuant to Section 1307(c)(1) of the Bankruptcy Code.
4. On May 11, 1983, the case was converted to a proceeding under Chapter 7 of the Bankruptcy Code and July 7, 1983 was fixed as the last date for filing objections to discharge.
5. On June 8, 1983, RICHARD FOGEL was appointed Interim Trustee and the time was extended to September 30, 1983 for the Trustee to object to discharge of the Debtors.
6. On May 26, 1983, Plaintiffs Swan, Seimenis, Stryski and Jacobson filed a complaint to lift the automatic stay imposed by Section 362 of the Bankruptcy Code. Plaintiffs had recovered a judgment for restitution in the case, People of the State of Illinois v. George Dervos, Case Number 82 MI 396282, Circuit Court of Cook County, Municipal Division, First District. The State prosecuted the Debtor, George Dervos, on behalf of Swan, Seimenis, Stryski, and Jacobson, who had been employed as teachers at the ATHENAIKON HELLENIC AMERICAN SCHOOL, for violations of the Wage Payment and Collection Act, Illinois Revised Statutes Chap. 48, ¶ 39M-14, violation of said Act constituting a Class C misdemeanor. A plea of guilty was entered by George Dervos and in the judgment order dated July 1, 1982, judgment of conviction was deferred and George Dervos was placed on supervision until December 9, 1982, and said supervision was conditioned upon performance of certain obligations set out in the judgment order which stated, in pertinent part:
Debtors filed the petition in Bankruptcy on September 3, 1982, approximately three weeks prior to the date of the first payments to be made in compliance with the order of restitution quoted above, and to date, George Dervos has failed to comply with the order of restitution.
7. On September 27, 1983, a hearing was held on the complaint to lift the automatic stay and George Dervos testified that he had not made any payments to the Plaintiffs pursuant to the order of the Circuit Court, and MEYER WEINSTEIN, attorney for the Plaintiffs, represented to the Court that JUDGE WARD of the Circuit Court of Cook County had given him leave to act as co-counsel to the Assistant Attorney General in the State court proceeding.
The Court Concludes and Further Finds:
1. Section 362 provides for the imposition of an automatic stay, applicable to all entities, of any proceedings against a party who has petitioned for relief under the Bankruptcy Code. However, in drafting this section of the Code, Congress carved out several exceptions to the applicability of the automatic stay and the exceptions of particular importance and applicability in this proceeding are as follows:
2. The applicability of the exception to the automatic stay provided by Section 362(b)(1) of the Code depends upon whether the proceeding against the debtor is criminal in nature. This analysis begins with an examination of the Statute the debtor violated. George Dervos entered a plea of guilty to a violation of the Wage Payment and Collection Act, Illinois Revised Statutes Ch. 48 ¶ 39M-14, which provides, in relevant part:
39M-14. Refusal to pay wages or final compensation—Punishment—Failure to obey order to pay wages—Penalty § 14. Any employer or any agent of an employer,...
To continue reading
Request your trial