Sierra v. Scotiabank of P.R. (In re Sierra)

Full title: IN RE: TAMMY ESTRADA SIERRA Debtor TAMMY ESTRADA SIERRA Plaintiff v…

Court: UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF PUERTO RICO

Date published: Jun 17, 2016

CASE NO. 15-02702 BKT (Bankr. D.P.R. Jun. 17, 2016)

Opinion

CASE NO. 15-02702 BKT Adversary No. 15-00167 BKT

06-17-2016

IN RE: TAMMY ESTRADA SIERRA Debtor TAMMY ESTRADA SIERRA Plaintiff v. SCOTIABANK OF PUERTO RICO; AND/OR HOLDER OF THE MORTGAGE NOTE; JOSÉ R. CARRIÓN CHAPTER 13 TRUSTEE Defendant(s)

Brian K. Tester U.S. Bankruptcy Judge

Chapter 13

OPINION AND ORDER

Before this court is a Motion to Dismiss for Lack of Standing [Dkt. No. 22] filed by Defendant, Soctiabank of Puerto Rico ("Scotiabank"), along with Plaintiff's Opposition to Defendant's Motion to Dismiss for Lack of Standing [Dkt. No. 34] and Reply to Debtor's Opposition to Dismissal of this Action filed by Scotiabank. [Dkt. No. 48]. For the reasons set forth below, Scotiabank's Motion to Dismiss for Lack of Standing is DENIED.

I. Discussion

The court denies the Motion to Dismiss for Lack of Standing and determines that the true issue present is whether Scotiabank has a valid mortgage lien on the Plaintiff's property. The Plaintiff does have standing to bring an adversary proceeding under Fed. R. Bankr. P. 7001(2). Fed. R. Bankr. P. 7001(2) grants a debtor standing to commence an adversary proceeding when the validity, priority, or extent of a lien is to be determined. Fed. R. Bankr. P. 7001(2). The validity of Scotiabank's lien must be determined in order to adjudicate the Plaintiff's complaint. [Dkt. No.1].

Any discussion of 11 U.S.C. § 544 and a chapter 13 debtor's right, or lack of said right, to exercise the trustee's avoidance powers is misplaced, irrelevant, and not applicable. The pleadings were convoluted, misdirected, and a distraction from the real issue at hand. The court is not obligated to compensate for the shortcomings and failures of attorneys, however, in the interest of ensuring each party a fair trial this court has chosen to redirect both parties to the appropriate issue. Had the court taken the Motion to Dismiss for Lack of Standing [Dkt. No. 22], Opposition to Defendant's Motion to Dismiss for Lack of Standing [Dkt. No. 34], and Reply to Debtor's Opposition to Dismissal of this Action [Dkt. No. 48] at face value the outcome would have varied greatly.

II. Conclusion

WHEREFORE, IT IS ORDERED that the Motion to Dismiss for Lack of Standing [Dkt. No. 22] filed by Scotiabank shall be, and it hereby is, DENIED. The Clerk shall schedule a status conference.

In San Juan, Puerto Rico this 17^th day of June, 2016.

/s/

Brian K. Tester

U.S. Bankruptcy Judge