JOAN N. FEENEY, Bankruptcy Judge.
The matters before the Court are 1) the Defendants' Motion to Amend Answer and Counterclaim pursuant to which the Defendants seek to add three additional counterclaims in addition to an existing counterclaim; and 2) the "Expedited Motion for Hearing Upon Defendant's [sic] Counterclaim Prayer #2 for Restraining Order," pursuant to which the Defendants, Anthony DeSimone and Cheryl DeSimone (the "Defendants" or the "Debtors"), seek a "restraining order" against Genaro Recupero (the "Plaintiff"), whom the Defendants allege has been following them and photographing them and their property in violation of the automatic stay. See 11 USC §362. The Defendants assert that "these outrageous acts are being done by this Plaintiff [Genaro Recupero] in order to harass, intimidate, annoy and place them in fear; to invade their privacy; and in order to continue his efforts to collect the alleged debt sued upon, in violation of the automatic stay of Section 362(a)." Notably, Genaro Recupero and Anthony DeSimone are estranged cousins.
The Plaintiff opposes the Defendants' Motion. They rely upon issue preclusion as the Defendants' requests for temporary restraining orders have been denied in the Malden District Court. The Plaintiff also asserts that the Defendants have "unclean hands."
The Court heard the Motion to Amend Answer and Counterclaim and the Expedited Motion for a restraining order on November 4, 2015. At the hearing, neither party requested an evidentiary hearing. The material facts necessary to rule on the Defendants' request for a restraining order primarily are set forth in Counterclaims II-IV. Although the factual allegations in the Complaint filed by Genaro Recupero and Cheryl Recupero (together, the "Plaintiffs") are disputed, the facts necessary to assess the Defendants' entitlement to injunctive relief are included in the Counterclaims and the submissions of the parties. For the reasons set forth below, the Court shall enter an order denying the request for a "restraining order," which this Court shall treat as a motion for a preliminary injunction.
The Defendants filed a Chapter 13 petition on September 11, 2014. On Schedule D-Creditors Holding Secured Claims, the Defendants listed the Plaintiffs as the holders of a secured claim in an unspecific amount secured by "28 Shane Way, Unit 3, Laconia, NH, 37 Butternut Road, Wakefield, MA and DeSimone's Auto Solutions." The Plaintiffs objected to the Defendants' Chapter 13 plan. The Defendants were unsuccessful in obtaining confirmation of their Chapter 13 plan and voluntarily converted their Chapter 13 case to a case under Chapter 7 on January 5, 2015.
On February 19, 2015, the Plaintiffs moved for relief from the automatic stay to foreclose a mortgage on the Laconia, New Hampshire property allegedly securing a note executed by the Defendants on July 20, 2009 in the principal amount of $527,432.52. On March 6, 2015, the Court, in the absence of any objections, granted the Plaintiffs' lift stay motion. On May 4, 2015, the Plaintiffs moved for relief from the automatic stay with respect to a mortgage on the Wakefield, Massachusetts property, allegedly securing the same note. On June 3, 2015, the Court granted the lift stay motion over the Debtors' objection.
On July 7, 2015, the Plaintiffs commenced an adversary proceeding against the Defendants, setting forth a count under 11 U.S.C. § 523 for false pretenses, false representations, or actual fraud and a count under 11 U.S.C. § 727 for concealment of assets and other misconduct.
The Defendants answered the Complaint and initially filed a single Counterclaim to set aside the foreclosure sale of the Laconia, New Hampshire property.
On October 11, 2015 the Defendants moved to amend their answer and to add three additional counterclaims, namely Counterclaim II-Violation of 11 U.S.C. § 362(a); Counterclaim III-For Harassment and Intentional Inflict [sic] of Emotion [sic] Distress as to Genaro Recupero; and Counterclaim IV-For Invasion of Privacy by Genaro Recupero. In addition, they sought a "restraining order" with respect to the conduct alleged in Counterclaims II-IV.
The Defendants allege the following conduct with respect to the Counterclaims they seek to add and the restraining order they request:
The Plaintiffs maintain that Genaro Recupero was "legally within his rights to be in public, on a public way, and [to] take photographs and video records of the Defendants in public. At no time was a law violated as adjudicated by the Malden District Court." Specifically, the Plaintiffs point out that the Malden District Court refused to enter restraining orders or abuse prevention orders on September 29, 2014 and again on May 15, 2015.
In
The Court concludes that the Defendants have failed to satisfy the standard for obtaining either a permanent injunction or a temporary restraining order. In particular, the Court concludes that the Defendants failed to submit cogent evidence, in the form of affidavits or otherwise, to establish that the conduct occurring on the dates set forth in the Counterclaims violated the automatic stay, was intended to harass or cause emotional distress, or was intended to invade the privacy of the Defendants. In making this determination, this Court must juxtapose the Plaintiffs' legitimate discovery needs in this adversary proceeding against the Defendants' privacy rights. In this Court's view, the Plaintiffs have the right to ascertain whether all the Defendants' assets were disclosed on their Schedules, and the Defendants are not entitled to an order preventing the Plaintiffs from pursuing discovery.
Specifically, with respect to Count II, pursuant to which the Defendants allege that Genaro Recupero violated the automatic stay by "continuing with `other action' against him [sic] to recover his claim against the defendants that arose prior to the filing of the bankruptcy," the Court concludes that the Defendants have failed to establish a likelihood of success on the merits of Counterclaim II. The reason is simple. The Plaintiffs have filed a Complaint seeking a determination under 11 U.S.C. § 727 that the Defendants are not entitled to a discharge for, among other reasons, concealing assets with the intention of hindering, delaying and defrauding creditors and selling a 2002 Powerquest 290 speedboat to Anthony DeSimone's mother for less than fair market value. In addition, the Plaintiffs have claimed that the Defendants' debt to them is nondischargeable under 11 U.S.C. § 523(a)(2)(A) due to the Defendants' misrepresentations and fraud. Under those circumstances, the Defendants, in order to state a plausible claim for violation of the automatic stay, must do more than make conclusory assertions. To obtain the relief they seek, they were required to specify how Genaro Recupero's conduct in taking photographs violates the automatic stay, as opposed to merely alleging distress associated with their bankruptcy case and this adversary proceeding, which are matters of public record. The Defendants' perceptions are not enough to state a claim for relief. The Defendants, to establish a likelihood on the merits, must set forth conduct that is not legitimate discovery.
With respect to Counterclaim III, the Defendants purport to state a cause of action for intentional infliction of emotional distress. In
The Defendants submitted a single affidavit after the denial by the Malden District Court of their request for an abuse prevention order on September 29, 2014 for which a transcript was provided. See Mass. Gen. Laws ch. 209A, §§ 1-11. That affidavit relates to a request for an abuse prevention order submitted to the Malden District Court. In the affidavit, Anthony DeSimone attested to his fear that the Genaro Recupero will harm him because Genaro Recupero is allegedly mentally unstable and owns fire arms. On May 15, 2015 the Malden District Court denied an abuse prevention order "after full hearing."
According to the court in
With respect to the Defendants' Counterclaim IV, the Defendants assert that Genaro Recupero's conduct in openly following the Defendants and taking photographs of them on five separate occasions in five months was for the purpose of knowingly and intentionally intruding on their privacy in order to harass them in violation of law without any legitimate purpose. At the hearing, counsel for the Defendants referenced a statute governing invasions of privacy. That statute is Mass. Gen. Laws ch. 214, § 1B. According to the United States Court of Appeals for the First Circuit in
The Court concludes the Defendants have failed to establish a likelihood on the merits of Counterclaim IV for purposes of obtaining injunctive relief. The Defendants, to paraphrase the Court of Appeals in
For the foregoing reasons, the Court shall enter and order granting Defendants' Motion to Amend Answer and Counterclaim, without prejudice to the filing of a Motion to Dismiss Counterclaims II-IV. The Court shall enter an order denying the Defendants' Expedited Motion through which they seek a "restraining order."