Opinion ID: 888672
Heading Depth: 1
Heading Rank: 5

Heading: Issue 5: Did the District Court err when it ordered Siegle to pay Siegle, Inc. $117,276?

Text: ¶ 52 Siegle, in his cross-appeal, claims that the District Court erred in ordering him to pay Siegle, Inc. $117,276, as this debt has been discharged in bankruptcy. ¶ 53 In his counterclaim, Helmuth alleged that, in a Chapter 13 bankruptcy proceeding, Siegle discharged a debt to Siegle, Inc. in the amount of $92,686. In his answer to the counterclaim, Siegle admits that his debt of $92,686 to Siegle, Inc. was discharged. ¶ 54 The District Court, after noting that Siegle had discharged a debt to Siegle, Inc. in the amount of $92,686, found that Siegle had also used corporate funds to make an $8,900 down payment for a friend and had paid expenses of $15,000 for another friend. The District Court stated that these amounts were shown on Exhibit U. However, the District Court file contains a note that Exhibit U was objected to, is out and there is no Exhibit U in the record before this Court. The District Court also found that Siegle paid $690 of corporate funds to insure a friend's vehicle. The District Court then ordered Siegle to pay Siegle, Inc. $117,276, which includes the $92,686 that the parties admit was discharged in bankruptcy, as well as the additional $24,590. ¶ 55 A debt that is discharged in bankruptcy may not be collected. 11 U.S.C. § 524(a)(1). Thus, under the admitted facts of this case, the District Court erred in ordering Siegle to pay at least $92,686 to Siegle, Inc. The record is insufficient to determine whether the remaining $24,590 is owed to Siegle, Inc., and if so whether this debt has been discharged in bankruptcy. The $24,590 may have been included in the debts listed in Siegle's bankruptcy petition and may or may not have been discharged under a provision of 11 U.S.C. § 1328. ¶ 56 The District Court erred in ordering Siegle to pay $117,276 to Siegle, Inc. Upon remand this amount shall be reduced by at least $92,686. Whether $24,590 of this amount is owed by David Siegle to Siegle, Inc. shall be reconsidered upon remand.