Strickland v. Shannon ( 1996 )


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  •                       United States Court of Appeals,
    Eleventh Circuit.
    No. 95-3346.
    In re Kenneth I. STRICKLAND, Debtor.
    Kenneth I. STRICKLAND, Plaintiff-Appellant,
    v.
    John Hugh SHANNON, Lauren J. Strickland, Defendants-Appellees.
    Aug. 1, 1996.
    Appeal from the United States District Court for the Middle
    District of Florida. (Nos. 93-1393-CIV-T-24A, 91-14853-8P7), Susan
    C. Bucklew, Judge. (No. 
    160 B.R. 675
    ), Alexander L. Paskay, Judge.
    Before COX and BARKETT, Circuit Judges, and BRIGHT*, Senior Circuit
    Judge.
    BARKETT, Circuit Judge:
    Kenneth Strickland ("debtor") appeals from a district court
    order finding nondischargeable his $9,430.50 debt to his former
    spouse Lauren Strickland ("former spouse") and her attorney for
    attorney fees resulting from the debtor's failed attempt to modify
    child-custody and child-support provisions of a divorce judgment.
    Reversing the bankruptcy court, the district court found the debt
    nondischargeable under 
    11 U.S.C. § 523
    (a)(5) because it was in the
    nature of support for the minor child and/or the former spouse.        We
    affirm.
    I. BACKGROUND
    A 1985 state court judgment dissolved the marriage of the
    debtor    and   his    former   spouse,   and   provided   that   parental
    responsibility for the minor child would be shared, that the
    *
    Honorable Myron H. Bright, Senior U.S. Circuit Judge for
    the Eighth Circuit, sitting by designation.
    child's primary physical residence would be with the former spouse,
    and that the debtor would pay $200 per month in child support.             The
    debtor later petitioned to modify the judgment so as to designate
    his home as the child's primary residence, terminate his child
    support payments, and require the former spouse to pay child
    support.     The state court denied the petition and ordered the
    debtor to pay $9,430.50 in attorney fees and costs incurred by the
    former spouse in defending against the petition.
    Thereafter filing for bankruptcy, the debtor filed a complaint
    seeking a determination that his debt for the attorney fees award
    was dischargeable under 
    11 U.S.C. § 523
    (a)(5), which provides that
    a debtor cannot be discharged from any debt to a "former spouse ...
    or child of the debtor ... for ... support of such spouse or child,
    in connection with a ... divorce decree or other order of a court
    of record." The bankruptcy court allowed the discharge, holding as
    a matter of law that an obligation to pay attorney fees arising
    from a post-dissolution child-custody dispute does not constitute
    "support" under § 523(a)(5).        The district court reversed, holding
    that an award for attorney fees relating to post-dissolution
    child-custody    litigation    involving      child-support    issues     does
    constitute    support      under    §   523(a)(5)     and     therefore    is
    nondischargeable.
    On    appeal,   the   debtor    argues    that   the   district    court
    improperly held as a matter of law that the attorney fees award
    constituted "support" under § 523(a)(5). He urges us to remand the
    case to the bankruptcy court for a determination of whether the
    award of attorney fees, in fact, constituted support for the minor
    child or the former spouse.
    II. DISCUSSION
    Under Chapter VII of the Bankruptcy Code, a debtor may obtain
    a general discharge "from all debts that arose before the date of
    the order for relief."        
    11 U.S.C. § 727
    (b) (1994).             The Code does
    not, however, discharge a debtor from any debt:
    (5) to a spouse, former spouse, or child of the debtor,
    for alimony to, maintenance for, or support of such spouse or
    child, in connection with a separation agreement, divorce
    decree or other order of a court of record, ... but not to the
    extent that—
    *      *     *     *      *     *
    (B) such debt includes a liability designated as alimony,
    maintenance, or support, unless such liability is actually in
    the nature of alimony, maintenance or support....
    
    Id.
     § 523(a)(5).
    The issue of whether the attorney fees award in this case
    constituted "support" within the meaning of § 523(a)(5) is a matter
    of federal law, which we review de novo.                  See In re Harrell, 
    754 F.2d 902
    , 904-05 (11th Cir.1985).            In In re Harrell, we described
    the appropriate § 523(a)(5) inquiry as follows:
    The language used by Congress in § 523(a)(5) requires
    bankruptcy courts to determine nothing more than whether the
    support label accurately reflects that the obligation at issue
    is "actually in the nature of alimony, maintenance, or
    support." The statutory language suggests a simple inquiry as
    to whether the obligation can legitimately be characterized as
    support, that is, whether it is in the nature of support.
    In re Harrell, 754 F.2d at 906 (emphasis in original).                      Because
    federal   law,   rather   than       state   law,       controls   our   inquiry,   a
    domestic obligation can be deemed actually in the nature of support
    under § 523(a)(5) even if it is not considered "support" under
    state law.   See id. at 905.          Although state law does not control,
    it does provide guidance in determining whether the obligation
    should be considered in the nature of "support" under § 523(a)(5).
    In re Jones, 
    9 F.3d 878
    , 880 (10th Cir.1993).
    As noted, the debtor in this case filed a petition in state
    court      seeking   to   modify   the   minor   child's   primary   physical
    residence and the allocation of child support obligations.                The
    state court denied these requests in toto and ordered him to pay
    his former spouse's attorney fees.           Under Florida law, a former
    spouse is entitled to an award of attorney fees in a modification
    action such as the one filed here based on relative need and
    ability to pay.      See Fla.Stat. § 61.16(1) (1993);        Hyatt v. Hyatt,
    
    672 So.2d 74
    , 76 (Fla.Dist.Ct.App.1996). In awarding attorney fees
    to   the    former   spouse,   the   state   court   therefore   necessarily
    determined that she had a greater need and/or lesser ability to pay
    than did the debtor.           Thus, the award of attorney fees can
    "legitimately be characterized as support," In re Harrell, 754 F.2d
    at 906, for the former spouse and therefore is nondischargeable
    under § 523(a)(5).
    Nonetheless, relying on an Eighth Circuit case, the debtor
    argues that we should remand this case so the bankruptcy court can
    determine the relative financial resources of the parties and/or
    whether the state court adequately considered them in awarding the
    fees to the former spouse, see Adams v. Zentz, 
    963 F.2d 197
    , 200
    (8th Cir.1992) (holding that "[i]n deciding whether to characterize
    an award as maintenance or support the crucial issue is the
    function the award was intended to serve" and that "[t]his is a
    question of fact to be decided by the bankruptcy court").                  As
    noted, however, we previously have held in this circuit that §
    523(a)(5) requires nothing more than "a simple inquiry as to
    whether   the    obligation    can   legitimately      be     characterized    as
    support."       In   re   Harrell,   754   F.2d   at   906.      Moreover,    the
    "[d]ebtor's attempt to expand the dischargeability issue into an
    assessment of the ongoing financial circumstances of the parties to
    a marital dispute would of necessity embroil federal courts in
    domestic relations matters which should properly be reserved to the
    state courts."       Id. at 907.
    In light of the foregoing, we hold that an attorney fees
    award arising from a post-dissolution custody action constitutes
    "support" for the former spouse under 
    11 U.S.C. § 523
    (a)(5) where,
    as here, the award is based on ability to pay.                In the absence of
    special circumstances showing otherwise from the record in the
    underlying proceedings, the district court properly determined that
    the debt in this case is not dischargeable.
    III. CONCLUSION
    For the foregoing reasons, the judgment of the district court
    is AFFIRMED.
    

Document Info

Docket Number: 95-3346

Filed Date: 8/1/1996

Precedential Status: Precedential

Modified Date: 12/21/2014