3:03-bk-05547•EDGARDO COLON LEDEE
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IN THE UNITED STATES BANKRUPTCY COURT FOR
THE DISTRICT OF PUERTO RICO
IN RE:
EDGARDO COLON LEDEE CASE NO. 03-05547 BKT
Chapter 7
XXX-XX-5649
FILED & ENTERED ON 03/31/2011
Debtor(s)
OPINION AND ORDER
This proceeding is before the Court upon the Debtor’s Motion for summary judgment
regarding Objection to Claim #15 [Dkt. No. 325], and the Treasury Department of Puerto Rico’s
("Treasury") Opposition to Debtor's Motion for Summary Judgment and Request for Summary
Judgment [Dkt No. 338].
I. FACTUAL BACKGROUND
The Debtor filed his Chapter 7 petition on May 28, 2003. On October 19, 2009, Treasury
filed Claim #15, alleging a priority claim of $406,083 in unpaid taxes. On May 19, 2010, the Debtor
filed an Objection to Claim #15, arguing that part of the claim is unenforceable against the estate
because the same refers to taxes incurred subsequent to the filing of the petition; and an additional
part of the claim is also unenforceable since it represents post-petition interests and penalties. On
August 18, 2010, Treasury filed its Reply to Debtor’s Objection to Claim, arguing that the claim is
Case:03-05547-BKT7 Doc#:350 Filed:03/31/11 Entered:03/31/11 17:41:02 Desc: Main
Document Page 1 of 32 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 allowable since the same is a post-petition claim under 11 U.S.C.A. § 725. Treasury also filed an amended claim on August 20, 2010, increasing the amount claimed from $406,083 to $642,008. The Debtor maintains that the amounts alleged to be due are unenforceable against the estate because the amounts owed accrued post-petition. Treasury responds that, because Debtor did not specifically object to the amended proof of claim, the claim should be allowed. II. SUMMARY JUDGMENT STANDARD Under Federal Rule of Civil Procedure 56(c), made applicable in bankruptcy by Federal Rule of Bankruptcy Procedure 7056, summary judgment is available if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law. Fed. R. Civ. P. 56(c); Borges ex rel. S.M.B.W. v. Serrano-Isern, 605 F.3d 1, 4 (1st Cir. 2010). As to issues on which the movant, at trial, would be compelled to carry the burden of proof, the summary judgment request must identify those portions of the pleadings which it believes demonstrates that there is no genuine issue of material fact. In re Edgardo Ryan Rijos & Julia E. Cruz Nieves v. Banco Bilbao Vizcaya & Citibank (In re Rijos), 263 B.R. 382, 388 (B.A.P. 1st Cir. 2001). A fact is deemed "material" if it potentially could affect the outcome of the suit. Borges at 5. Moreover, there will only be a "genuine" or "trial-worthy" issue as to such a "material fact," "if a reasonable fact-finder, examining the evidence and drawing all reasonable inferences helpful to the party resisting summary judgment, could resolve the dispute in that party's favor." Id. at 4. The Court must view the evidence in a light most favorable to the nonmoving party. Alt. Sys. Concepts, Inc. v. Synopsys, Inc., 374 F.3d 23, 26 (1st Cir. 2004). Therefore, summary judgment is “inappropriate if inferences are necessary for the judgment and those inferences are not mandated by Case:03-05547-BKT7 Doc#:350 Filed:03/31/11 Entered:03/31/11 17:41:02 Desc: Main Document Page 2 of 3
3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 the record.” Rijos at 388. III. LEGAL ANALYSIS AND DISCUSSION In its motion for summary judgment, Treasury admits and requests from this Court to note that claim number 15 is a post petition claim under section 725. The amended claim 15-2 has not been objected to and as a post petition claim under 725, is subject to the Trustee's determination before final distribution. Having found that Treasury’s claim number 15 seeks to collect on a debt that accrued post-petition, the Debtor’s motion for summary judgment [Dkt. No. 325] is GRANTED to the extent that Treasury's proof of claim 15-2 is clearly a post petition claim under section 725 of the Bankruptcy Code instead of a priority claim under section 507(a)(8) of the Bankruptcy Code. SO ORDERED. San Juan, Puerto Rico this 31 day of March, 2011. Brian K. Tester U.S. Bankruptcy Judge Case:03-05547-BKT7 Doc#:350 Filed:03/31/11 Entered:03/31/11 17:41:02 Desc: Main Document Page 3 of 3
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