Plise v. Krohn (In re Plise)
- Citation:
- Plise v. Krohn (In re Plise), BAP No. NV-14-1474-DJuKu (B.A.P. 9th Cir. April 6, 2015)
- Tag(s):
-
- Ruling:
- AFFIRMING the bankruptcy court, the Bankruptcy Appellate Panel of the Ninth Circuit held that the bankruptcy court did not commit reversible error when it disallowed debtor's ex-wife's proof of claim. The panel reasoned that the ex-wife was judicially estopped from asserting her proof of claim, as she was playing fast and loose with the bankruptcy court by asserting inconsistent positions. Having settled with the estate by paying $425,000, and protecting herself from liability for a number of fraudulent transfers, the ex-wife succeeded in persuading the bankruptcy court to accept that she was giving up property that she acquired in satisfaction of a domestic support obligation in order to settle the trustee's claims against her. By filing the proof of claim and seeking to have it allowed, the ex-wife was attempting to gain an unfair advantage.
- Procedural context:
- The bankruptcy court entered an order sustaining the chapter 7 trustee's objection to debtor's ex-wife's proof of claim.
- Facts:
- The chapter 7 trustee filed an adversary proceeding against debtor's ex-wife, alleging that her prepetition divorce from debtor was a sham and that transfers of community property to her pursuant to the dissolution proceedings constituted fraudulent transfers. The trustee's claims against the ex-wife were settled through a payment of $425,000 to debtor's estate. Notwithstanding the settlement, the ex-wife filed a proof of claim, which asserted that (1) she was owed a $425,000 prepetition domestic support obligation (later amended to $715,000) and (2) she was entitled to priority status under the Bankruptcy Code. The bankruptcy court sustained the trustee's objection to the ex-wife's proof of claim. This appeal ensued.
- Judge(s):
- DUNN, JURY, and KURTZ
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