In re Thomas
| Citation | 203 BR 64 |
| Decision Date | 29 October 1996 |
| Docket Number | Bankruptcy No. 95-60321,Adv. No. 96-6027. |
| Court | United States Bankruptcy Courts. Fifth Circuit. U.S. Bankruptcy Court — Eastern District of Texas |
| Parties | In re Jeffrey Dale THOMAS, Debtor. Charles GEBHARDT, Plaintiff, v. Jeffrey Dale THOMAS, Defendant. |
Roger J. Allen, Dallas, TX, for Debtor/Defendant.
Alan Gerger, Houston, TX, for Plaintiff.
Jeffrey Dale Thomas (the "Debtor") seeks dismissal, contending the discharge complaint filed by Charles Gebhardt ("Trustee") was filed untimely. The Trustee responds that the Debtor waived any untimeliness argument when he voluntarily agreed to extend the deadline. The parties thus ask this Court to resolve a split of authority. One line of cases holds the rules for discharge and dischargeability actions are jurisdictional, and another holds they are procedural. Construing United States Supreme Court and Fifth Circuit precedent, this Court holds the deadlines are jurisdictional. The Court dismisses this adversary proceeding for want of subject matter jurisdiction.
This Court has jurisdiction over the Debtor's bankruptcy case and properly filed discharge and dischargeability complaints under 28 U.S.C. § 1334, 28 U.S.C. § 157(a), and the standing order of reference. A complaint challenging discharge and dischargeability of debts involves core issues. 28 U.S.C. § 157(b)(2)(I), (J).
The Court always has jurisdiction to determine its own jurisdiction. Ceres Gulf v. Cooper, 957 F.2d 1199, 1207 n. 16 (5th Cir.1992); Fed.R.Bankr.P. 7012(b) Fed.R.Civ.P. 12(h)(3). "The parties cannot waive lack of jurisdiction by express consent, or by conduct, or even by estoppel; the subject matter jurisdiction of the federal courts is too basic a concern to the judicial system to be left to the whims and tactical concerns of the litigants." 13 Charles A. Wright, Arthur R. Miller and Edward H. Cooper, Federal Practice and Procedure § 3522, at 66-67 (2d ed.1984) ().
1. The Court takes judicial notice of the historical facts established by the file and docket in the bankruptcy case. E.g. Wilson v. Huffman (In re Missionary Baptist Found. of Am.), 712 F.2d 206, 211 (5th Cir. 1983) (citations omitted).
2. The Debtor filed a pro se petition for relief under Chapter 7 of the Bankruptcy Code on March 13, 1995 (D.E. 1).
3. The Bankruptcy Clerk mailed the Notice of Commencement of Case ("Commencement Notice") on March 13, 1995 (D.E. 4). The Commencement Notice indicated that the initial meeting of creditors was scheduled for April 21, 1995.
4. On April 6, 1995, the Clerk sent a "Corrected Notice — First Meeting Rescheduled" ("Second Commencement Notice"). The Second Commencement Notice reflected that the initial meeting of creditors had been rescheduled for May 3, 1995. It also indicated the deadline for filing discharge and dischargeability complaints would be July 2, 1995.
5. The Debtor did not appear on May 3, 1995, so the meeting was rescheduled for July 26, 1995. In the interim, the Debtor sought dismissal of his bankruptcy case (D.E. 21, 22), but the motion ultimately was dismissed for lack of prosecution. (D.E. 40, 41). The creditors' meeting commenced on July 26, 1996 and was continued to August 18, 1995.
6. The Interim Trustee filed the first Trustee's Motion to Extend Time to File Objection to Debtor's Exemptions and Objection to Discharge on August 2, 1995 (D.E. 26).
7. The Order Extending Time to File Objection to Debtor's Exemptions and Objection to Discharge was entered on August 10, 1995 (D.E. 28). The deadline for discharge complaints was extended until 45 days after the conclusion of the creditors' meeting.
8. Charles Gebhardt was elected trustee (D.E. 34, 38).
9. The Trustee filed the Second Motion to Extend Time to File Objection to Debtor's Exemptions and Objection to Discharge on September 29, 1996 (D.E. 42).
10. On October 10, 1995, the Court entered its Order Granting Extension of Time to File Objection to Debtor's Exemptions and Objection to Discharge in which the deadline for discharge complaints was extended until thirty days after the December 19, 1995 deadline (D.E. 44).
11. On January 17, 1996, the Trustee filed a third Motion to Extend Time to File Objections to Exemptions and for Filing Complaints Objecting to Discharge (D.E. 82). The Trustee sought an additional thirty days to file complaints and object to discharge.
12. On January 29, 1996, the Court entered an order which granted the third extension request (D.E. 88).
13. On February 16, 1996, the Trustee filed the Complaint Objecting to the Debtor's Discharge.
14. The Debtor seeks dismissal of the discharge complaint, contending the Interim Trustee's first application was untimely, and the Court was without power to extend the filing deadline when it issued its first extension order. The Trustee responds that the Debtor agreed to extensions and that it would be inequitable to prohibit the extension.
The Debtor filed a motion to dismiss, Fed. R.Bankr.P. 7012(b) Fed.R.Civ.P. 12(b)(1), or, alternatively, a motion for summary judgment. Fed.R.Bankr.P. 7056. The landmark Fifth Circuit case for evaluating the procedural posture is Williamson v. Tucker, 645 F.2d 404 (5th Cir.), cert. denied, 454 U.S. 897, 102 S.Ct. 396, 70 L.Ed.2d 212 (1981). In the pending case the Court concludes it lacks subject matter jurisdiction based on "the complaint supplemented by undisputed facts evidenced by the record," so dismissal is proper. Williamson, 645 F.2d at 413.
15. Three interpretations have developed regarding the time periods for discharge and dischargeability actions. The first group of courts holds the time periods are jurisdictional. A second group implicitly holds the deadlines are not jurisdictional because extensions are allowed when attorneys are misled by court error. A third line of cases explicitly holds the deadlines are not jurisdictional. See European Am. Bank v. Benedict (In re Benedict), 90 F.3d 50, 53-54 (2d Cir.1996) ().
16. In determining the deadlines in the discharge and dischargeability rules are jurisdictional, this Court disagrees with several circuit courts of appeal. Nevertheless, this Court construes Supreme Court and Fifth Circuit authority as mandating a different result.
TEXTUAL ANALYSIS:
17. The Court commences its analysis with the text of the applicable statute and rules. "Where . . . the statute's language is plain, `the sole function of the courts is to enforce it according to its terms.'" United States v. Ron Pair Enter., Inc., 489 U.S. 235, 241, 109 S.Ct. 1026, 1030, 103 L.Ed.2d 290 (1989) (quoting Caminetti v. United States, 242 U.S. 470, 485, 37 S.Ct. 192, 194, 61 L.Ed. 442 (1917)); see also Taylor v. Freeland & Kronz, 503 U.S. 638, 643-44, 112 S.Ct. 1644, 1648-49, 118 L.Ed.2d 280 (1992) (). This Court must attempt to give meaning to every clause and word of a statute. Negonsott v. Samuels, 507 U.S. 99, 106, 113 S.Ct. 1119, 1123-24, 122 L.Ed.2d 457 (1993) (citing Moskal v. United States, 498 U.S. 103, 109-110, 111 S.Ct. 461, 465-466, 112 L.Ed.2d 449 (1990)).
APPLICABLE CODE AND RULES:
18. If the debtor is an individual, the Bankruptcy Code provides that the Court shall "grant a discharge, unless" the debtor's actions fall within a category of specifically prohibited conduct. 11 U.S.C. § 727(a). "Except as provided in section 523 of this title the section governing dischargeability of particular debts, a discharge . . . discharges the debtor from all debts that arose before the date of the order for relief under this chapter, and any liability on a claim that is determined under section 502. . . ." 11 U.S.C. § 727(b).
19. Section 523 prohibits the dischargeability of particular debts, and these debts include debts incurred by wrongful conduct. 11 U.S.C. § 523(a)(2), (4), (6), (15). The applicable portion of section 523(c) specifies, "the debtor shall be discharged from a debt of the kind specified in paragraph (2), (4), (6) or (15) . . . unless, on request of the creditor to whom such debt is owed, and after notice and a hearing, the court determines such debt to be excepted from discharge. . . ." 11 U.S.C. § 523(c)(1).
20. The statutes do not define the time periods for filing objections to discharge or dischargeability of particular debts. The rules define these periods.
21. Federal Rule of Bankruptcy Procedure 4004 provides in part:
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