In re Kim

Full title: In re JONGWON KIM and MYO RYUNG KIM, Debtors, v. JONGWON KIM, MYO RYUNG…

Court: United States Bankruptcy Court, Southern District of California

Date published: Jun 18, 2014

11-20034-PB7 (Bankr. S.D. Cal. Jun. 18, 2014)

Opinion

In re JONGWON KIM and MYO RYUNG KIM, Debtors, RICHARD M. KIPPERMAN, Chapter 7 Trustee, Plaintiff, v. JONGWON KIM, MYO RYUNG KIM and SONG K. MUN aka SUNG KEUN MOON, Defendants. No. 11-20034-PB7 Adv. No. 13-90151-PB United States Bankruptcy Court, Southern District of California June 18, 2014

         NOT FOR PUBLICATION

          ORDER ON TRUSTEE'S MOTION TO ENFORCE SETTLEMENT AND FOR PRELIMINARY INJUNCTION

          PETER W. BOWIE, JUDGE UNITED STATES BANKRUPTCY COURT

         At the center of the present dispute is the bankruptcy-estate's interest in real property located in South Korea. Debtor Kim has filed proceedings in the South Korea court to release a provisional lien filed by Ms. Kwon, while she has asserted a claim against the plaintiff Kim in South Korea. It does not appear that Ms. Kwon has filed a claim in the bankruptcy case, although she was listed as an unsecured creditor on Schedule F. Meanwhile, post-petition, Mr. Mun was granted a lien on the South Korea property by Mr. Kim without any court authorization.

         Both matters went to mediation and resulted in agreements, although the Kims were dragging their feet in executing the necessary documents. The litigation in South Korea is ongoing. Mr. Mun is reluctant to release his lien, as he agreed to do, while the South Korea litigation proceeds, and while the Kims have not executed the necessary documents.

         All parties apparently need to be reminded that the South Korea property is property of this bankruptcy estate and is protected by the automatic stay of 11 U.S.C. § 3 62. That means, among other things, that no legal actions may be taken against the property anywhere else than before this Court, unless authorization has been obtained from this Court. No lien may be obtained or perfected; no execution of a judgment may proceed against the property; and it makes no legal difference that the subject property is located in South Korea. It is well established that the automatic stay has extraterritorial effect as to any property of the bankruptcy estate, "wherever located and by whomever held...." 11 U.S.C. § 541 (a); 28 U.S.C. § 1334(e). In re Lykes Bros. Steamship Co., Inc., 201 B.R. 282, 287 (Bankr.M.D.Fla. 1997); In re Nakash, 190 B.R. 763, 768 (Bankr.S.D.NY 1996). See, also In re Simon, 153 F.3d 991 (9^thCir. 1998) (applying same analysis to the extraterritorial reach of a bankruptcy discharge injunction). All parties are reminded that consequences of a violation of the automatic stay of 11 U.S.C. § 362 will result in an award of damages under § 362(k), which may include punitive damages, as well, in appropriate circumstances.

         All of the forgoing said, it is clear from the uncontroverted pleadings that Mr. Mun has failed to comply with the terms of the settlement he made with the trustee in this case. Moreover, it is equally clear that enforcement of Mr. Mun's obligation to release his lien on the South Korea property is the only effective remedy available. Accordingly, the Court orders that Mr. Mun must provide to counsel for the trustee properly notarized documents providing for the release of Mr. Mun's claim against the South Korea property, legally sufficient under South Korean law to record said release of his claim.

         Mr. Mun is ordered to provide those documents to counsel for the trustee by July 2, 2014. If Mr. Mun fails to do so timely, counsel for the trustee may submit an order to this Court for the appointment of an elisor to sign such documents on Mr. Mun's behalf.

         In the meantime, the previously agreed upon injunction remains in full force and effect.

         IT IS SO ORDERED.