Mark Twain Kansas City Bank v. Larson (In re Larson)
Mark Twain Kansas City Bank v. Larson (In re Larson)
Opinion of the Court
FINAL JUDGMENT DISMISSING ADVERSARY ACTION WITHOUT PREJUDICE TO REINSTATEMENT, WITHOUT PAYMENT OF ANY FURTHER FILING FEE, FOR DETERMINATION OF DISCHARGEABILITY VEL NON IF AND WHEN ANY STATE COURT JUDGMENT IS RECOVERED AND ORDER ACCORDINGLY GRANTING PLAINTIFF RELIEF FROM THE AUTOMATIC STAY TO PROSECUTE THE STATE COURT ACTION
On March 6, 1986, the plaintiff filed its “complaint under section 523(a)(2)(B)” seeking an underlying judgment in the sum of $8,610.93 plus interest and $3,031.67 plus interest on the grounds that the obligations were as yet unpaid. For the same reasons, the plaintiff sought a decree of nondis-chargeability of the debts thus contended to be due on the grounds that they were incurred by fraud or false pretenses within the meaning of section 523(a)(2) of the Bankruptcy Code. On March 7, 1986, the day of the issuance of summons for service on defendant, the plaintiff served a request for production of documents on the defendant. More than 30 days later, this court issued its order directing the parties tc show cause why the underlying claim, a claim “on the debt” arising under state law
The plaintiff, however, objected to the proposed remission of the underlying action “on the debt” to the state court. Since the plaintiff is ordinarily permitted initially to choose its forum if more than one court has jurisdiction, and plaintiff appeared willing to brook the possible jurisdictional defect in the bankruptcy court, this court entered its order on May 22, 1986, setting the hearing of the merits of the action for June 2, 1986, at 2 p.m. Four days prior to the scheduled hearing, the plaintiff filed a written “motion for trial continuance” stating that the request for production of documents had not been responded to; that “(w)hen settlement discussions appeared to be breaking down, the undersigned wrote to Defendant’s attorney on April 22, 1986 requesting production on or before April 30, 1986”; that “(i)n response thereto, on or about May 9, 1986, Defendant responded to the Request for Production by claiming that .all of the documents sought were in the hands of the Trustee”; that “a letter dated May 23, 1986, from the Trustee, John R. Stonitsch, which states that he only has in his possession a few cancelled checks and has none of the other documents sought in the Request for Production of Documents” was received; that “it is going to be necessary that the undersigned, on behalf of Plaintiff, file a motion to compel the production of documents”; that “if and when such documents are produced and the undersigned has had an opportunity to review same ... a deposition of the Defendant will be required”; that “it is respectfully submitted that this case is not ready for trial and will not be ready for trial for at least 30 to 45 days”; and that a continuance is therefore “pray(ed).”
The local rules which are currently in effect in this court and which apply to this action
Under such circumstances, when the parties fail to prosecute the proceedings before the bankruptcy court, it has been held that a dismissal in favor of state court litigation is proper. The district court has sustained such a dismissal in Sur-Gro Plant Food Company, Inc. v. Rebel, Civil
Under such circumstances, in Sur-Gro ' Plant Food Company, Inc. v. Rebel, supra, the bankruptcy court, as a measure necessary or desirable to control its own docket, deemed trial and determination of the underlying claim in the state court to be preferable to an indefinite continuance. And in that case, the plaintiff had not, as here, simply filed a motion and then declined to attend the hearing as if the motion were to be automatically granted by the bankruptcy court. But, as this court has previously stated in Matter of Reynolds, Adversary Action No. 86-0116-SJ-ll (Bkrtcy.W.D.Mo. June 4, 1986), “(i)t seems patronizing of others to have to say that it is the court alone which has the power to grant or deny a continuance ... 'It is a general rule that the granting or refusing of a motion for continuance is wholly or largely within the sound discretion of the court.’ 17 C.J.S. Continuances sec. 5, p. 375 (West 1963).... Nor does this court propose to discipline or chastise counsel in this regard ... (T)his court’s chief concern is the expedition of the business before it.” Without the firm application of these principles, “as the authorities unanimously recognize, courts cannot expect to cope with the large and unwieldly case loads which are of the magnitude of the case load which is currently imposed upon the bankruptcy court in this district and elsewhere.” Id.
It is therefore, for the foregoing reasons,
ADJUDGED that the within adversary action be, and it is hereby, dismissed without prejudice to its reinstatement, without payment of any further filing fee, for determination of dischargeability vel non if and when any state court judgment is recovered. It is further, accordingly,
ORDERED that the plaintiff be, and it is hereby, granted relief from the automatic stay for the purpose of prosecuting the state court action.
. The new local rules became effective June 1, 1986, to all cases previously pending and filed thereafter. But, even without the rules, the principles applied in this case are of common applicability. See Sur-Gro Plant Food Company, Inc. v. Rebel, Civil Action No. 85-6191-CV-SJ-6 (W.D.Mo. Mar. 17, 1986).
Reference
- Full Case Name
- In the Matter of Donald Dwayne LARSON and Donna Gail Larson, Debtors. MARK TWAIN KANSAS CITY BANK v. Donald Dwayne LARSON
- Cited By
- 2 cases
- Status
- Published