Weary v. Poteat

Summarized by Dean Langdon , DelCotto Law Group PLLC
10 years 5 months ago

Citation:

15a0662n.06; Docket No. 15-5159

Tag(s):

Ruling:

Affirming the district court ruling below, the Sixth Circuit Court of Appeals held a prior landlord's letter to the debtor's attorney and mother threatening criminal prosecution did not fall within the exception to the automatic stay for the "commencement or continuation of a criminal action".

Procedural context:

The bankruptcy court issued a ruling finding the creditor/landlord in contempt and assessing punitive damages after holding an evidentiary hearing. The district court affirmed on appeal, and the creditor/landlord appealed to the Sixth Circuit Court of Appeals.

Facts:

The Debtor vacated an apartment in May, 2012. In January, 2013, the landlord (Weary) sent a letter to Debtor's parents threatening criminal prosecution unless payment of $13,000 was received. In March, 2013, Weary filed a civil action against the Debtor seeking almost $25,000. The Debtor filed for relief under Chapter 7 in April, and in May, 2013, the landlord send letters to Debtors' counsel and her mother acknowledging that he could no longer pursue his civil claims, but that he would pursue criminal charges, which would be more costly. No criminal charges were ever sought or filed. After an evidentiary hearing in December, 2013, the bankruptcy court found a willful violation of the stay, stated it was "the most egregious automatic stay case that I've heard since I've been on the bench and I've been on the bench a long time," and imposed punitive damages of $7,500. Weary appealed, not contesting the findings of the bankruptcy court, but arguing that his actions fell within the "criminal prosecution" exception to the automatic stay, and that imposing sanctions chilled his 1st Amendment rights. The district court rejected both arguments.

Judge(s):

Merritt, McKeague and White, opinion by McKeague

ABI Membership is required to access the full summary. Please Sign In using your ABI Member credentials. Not a Member yet? Join ABI now - it is absolutely worth it!