In re Wilson
| Decision Date | 07 June 2016 |
| Docket Number | No. 15-51532 MPP,15-51532 MPP |
| Parties | In re JASON LEE WILSON and AMBER DANNIELLE SHELTON WILSON Debtors. |
| Court | United States Bankruptcy Courts. Sixth Circuit. U.S. Bankruptcy Court — Eastern District of Tennessee |
This chapter 7 case is before the court on the motion of debtors Jason and Amber Wilson for a finding of contempt and an award of damages against their former landlord Johnny Steadman. The Wilsons allege that Mr. Steadman willfully violated the automatic stay after their bankruptcy filing by repeatedly entering their home without permission and then evicting them on the day of their son's 16th birthday party, even though they were not in default under the lease. A hearing on the contempt motion was held on April 26, 2016. Testifying were the Wilsons, Mr. Steadman, his agent Robin Smith of Keller Williams Realty, two constables, and the Wilsons' attorney, Dave Jordan. As discussed below, the court will grant the Wilsons' motion and award them compensatory damages of $8,014.59, recovery of attorney fees and costs of $5,833.27, and punitive damages of $5,000 against Mr. Steadman. The following constitute findings of fact and conclusions of law pursuant to Fed. R. Bankr. P. 7052. This is a core proceeding under 28 U.S.C. § 157(b)(2)(O). See, e.g., In re Depew, 51 B.R. 1010, 1014 (Bankr. E.D. Tenn. 1985).
On October 7, 2015, the Wilsons filed a voluntary petition for bankruptcy relief under chapter 7. At the time of their bankruptcy filing, the Wilsons resided along with their two minor sons in a house located at 313 Colonial Heights Road in Kingsport, Tennessee that they rented from Mr. Steadman. The written lease agreement between Mr. Steadman as landlord and Mrs. Wilson and Toni New, Mrs. Wilson's mother, as tenants, provided for monthly rent of $650 and had a one-year term beginning March 3, 2015, and ending March 3, 2016. According to the agreement, the lease was a transfer of an original lease dated November 15, 2014, from Mr. Wilson to Mrs. Wilson and her mother Toni New, with the security deposit previously paid by Mr. Wilson applied to the transferred lease. Mr. Wilson testified that the transfer occurred at the time he and his wife were going through some marital difficulties, that they had since worked through. Attached to the lease is a document entitled Confirmation of Agency Status, stating that Robin Smith of Keller Williams Realty is the designated agent for Mr. Steadman in connection with the leased real property. Both Ms. Smith and Mr. Steadman testified that Keller Williams managed the property for him.
The Wilsons did not schedule Mr. Steadman as a creditor, and there was no evidence that they were delinquent in their rent payments or otherwise in default of the lease at the time of their bankruptcy filing. The lack of default is further confirmed by the detainer summons that Mr. Steadman caused to be issued against the Wilsons after their bankruptcy filing, stating "the amount of rent now owing and unpaid is $ 0 " and providing no reason in the blank requiring the basis for which "the right of possession has now terminated." While the detainer summons does have a box checked, indicating that "Written . . . notice to vacate was given to Defendant(s) on or about September 16, 2015," no witness was questioned about this statement, and there was otherwise no evidence or suggestion that a lease termination letter had been sent.
Mr. Steadman testified that the Wilsons had informed Keller Williams that they would be out of the house by October 30, which was on a Sunday, and that he went by the house the Friday before and asked Mr. Wilson if they needed help moving, and that Mr. Wilson informed him thatthey did not, that they would be ready. Mr. Wilson denied that Keller Williams was ever told that they would be moving. He further testified that he told Mr. Steadman when he came by that they had no plans to move until their lease was up in March 2016, that their rent was current, that they had filed for bankruptcy relief, and that Mr. Steadman should contact the Wilsons' attorney Dave Jordan.
Mrs. Wilson testified that a few days later, on November 2, 2015, Mr. Steadman came to her home and entered it without permission, causing an argument to ensue between the two of them. She testified that she told him that he needed to talk with her attorney since they had filed bankruptcy. Upset by the unauthorized intrusion, Mrs. Wilson contacted the police and filed a police report against Mr. Steadman for criminal trespass. She also telephoned her husband, who was working out of town at the time as a construction superintendent in Mississippi, but returned home because of the disturbance. Mr. Steadman did not deny Mrs. Wilson's account of the November 2 incident, although he did deny that he had entered the home without permission, stating that Mrs. Wilson had told him previously that he could enter at any time. That same day, Mr. Steadman had the electrical and water utilities for the house taken out of Mr. Wilson's name and placed in the name of Mr. Steadman's daughter, who along with her husband moved into the rental property after Mr. Steadman had the Wilsons removed.
Robin Smith testified that Mr. Steadman informed her in November 2015 that he wanted the Wilsons removed from the premises. She stated that she told Mr. Steadman she wanted to discuss the matter with an attorney before commencing eviction proceedings, because the Wilsons were current on their rent and it was unusual to evict a tenant when the rent was current. Ms. Smith testified that she attempted to talk with Keller Williams' attorney about the matter, but when she was unable to get in touch with him, at Mr. Steadman's direction she filed a detainer action against Mrs. Wilson on November 11, 2015, with a hearing scheduled before the General Sessions Court of Sullivan County, Tennessee for November 30, 2015.
Constable Henry Price testified that he went to the Wilsons' residence several times in anattempt to serve the detainer summons and was finally able to serve it on November 23, 2015.1 He stated that when he arrived at the Wilsons' home that day, Mr. Steadman was already there and opened the back door for him, allowing the constable to stick his head in the door and yell in the house. Mrs. Wilson responded that she was in the bathroom taking a bath, and the constable posted the detainer summons on the door.
Mrs. Wilson testified that Mr. Steadman kicked in her locked basement door that day, and then entered the house while she was in the bathroom and commenced banging on the bathroom door, yelling and cursing. Mrs. Wilson testified that she told him to get out of her home, that he was not supposed to be contacting her anymore because of her bankruptcy filing, and that he was supposed to talk with her attorney. According to Mrs. Wilson, Mr. Steadman responded by repeatedly asking her to come out of the bathroom, calling her a profane name and stating that her lawyer no longer represented her, that she didn't have a bankruptcy lawyer anymore. At the hearing, Mr. Steadman was asked whether he had broken in as testified by Mrs. Wilson, and he invoked his Fifth Amendment right against self-incrimination in response. Constable Price testified that he did not witness and had no knowledge of anyone breaking into the Wilsons' residence.
After Mr. Steadman left the premises, Mrs. Wilson contacted the police, providing pictures of the broken lock. According to testimony, Mr. Steadman's actions in kicking in the back door caused a mirror to fall, damaging Mrs. Wilson's jewelry box, and that while he was in the house, Mr. Steadman took Mrs. Wilson's set of keys, including her house key and the keyless entry fob for her automobile. Besides contacting the police, Mrs. Wilson also notified her attorney Dave Jordan, who in turn sent a letter via fax and U.S. mail on November 25, 2015, to Tommy Kerns, Clerk of the Sullivan County General Sessions Court, with a copy by mail to Mr. Steadman, advising of the Wilsons' bankruptcy filing and enclosing for filing a Notice of Bankruptcy that included a copy of the Notice of Chapter 7 Bankruptcy Case, Meeting of Creditors & Deadlines issued by the bankruptcy court clerk on October 8, 2015. The letter advised that "[t]he automatic stay provisionsof 11 U.S.C. § 362(a)(1) stay all judicial proceedings pending against the Debtor." Similarly, the Bankruptcy Notice stated that
On November 30, 2015, the Wilsons and Mr. Jordan appeared in general sessions court for the scheduled hearing on the detainer action. Not seeing the case listed on that day's docket, Mr. Jordan questioned the court clerk who informed him that the case had been removed because of the bankruptcy filing. Satisfied that the matter had been stayed by the bankruptcy, the Wilsons and Mr. Jordan left. However, Mr. Steadman appeared later and advised the judge that his case should be on the docket. Apparently unaware of the bankruptcy filing, the judge called the case and, when neither Mrs. Wilson nor Mr. Jordan appeared, issued a default judgment of possession. Mr. Wilson testified that Mr. Steadman came by the rental property later that day, and that they notified Mr. Jordan of the visit.
The next day, Mr. Jordan, having been advised by his clients that Mr. Steadman had visited them again, but unaware of what had transpired in court after he left, sent a second letter, this time addressed directly to Mr. Steadman. In this letter, Mr. Jordan observed that Mr. Steadman had continued to contact Mrs. Wilson regarding her lease despite her bankruptcy filing and advised Mr. Steadman that "you must immediately terminate all of your collection activities...
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