In Re Michael J. Kissinger, Debtor. Thomas Mataya, Creditor-Appellee v. Michael J. Kissinger, Debtor-Appellant

Appellees-creditors Thomas and Elisa Ma-taya sued appellant-debtor Michael Kissinger in state court for legal malpractice arising out of Kissinger’s representation of Thomas Mataya in connection with the death of Mata-ya’s son. Kissinger represented himself at trial. Following the presentation of evidence on liability and compensatory damages, the trial judge, sua sponte, granted a two day recess. During the recess, Kissinger filed a Chapter 11 bankruptcy petition.

When the proceedings reconvened on June 28, 1993, the judge ordered the immediate completion of the trial, despite the pendency of the bankruptcy petition and the corresponding automatic stay provided by 11 U.S.C. § 362 (a). The following day, the jury returned a verdict for the Matayas in the amount of $90,000. Because the jury also found that Kissinger acted with “oppression, fraud, or malice,” the trial judge put the matter over to August 6, 1993, for a trial on punitive damages.

The Matayas then filed a motion in the bankruptcy court seeking relief from the automatic stay, nunc pro tunc to June 28,1993. The bankruptcy court granted retroactive relief, so that the judgment would be valid in the state court…