In re Andrew Michael Demos

Summary

The United States Bankruptcy Court for the Southern District of Florida grants the debtor’s emergency motion for sanctions against Elaine Demos for willfully violating the automatic stay by filing New York state court papers seeking a determination and enforcement of prepetition domestic support obligations previously adjudicated in the bankruptcy case. The court orders payment of the debtor’s reasonable attorneys’ fees and costs, directs withdrawal or amendment of the offending state court filings, and reserves the possibility of punitive damages and further contempt sanctions. The court distinguishes permissible state court proceedings concerning postpetition domestic support obligations from impermissible relitigation of the final prepetition claim determination.

Holdings

1. The New York filings violated the automatic stay because they sought a secondary judicial determination and enforcement of prepetition domestic support obligations after the bankruptcy court had fixed the amount of the claim in a final, non-appealable order.
2. Demos willfully violated the automatic stay because she knew the stay was in effect and intentionally caused the New York filings to occur, regardless of whether she specifically intended to violate the stay.
3. The debtor is entitled to actual damages, including reasonable attorneys' fees and costs, resulting from the willful stay violation.
4. The court ordered Demos to withdraw or amend the New York filings, explain the previously adjudicated status of claim 12 to the New York court, and provide copies of the claim order and opinion. If she failed to complete those remedial actions by April 3, 2026, the court would impose punitive damages of at least $250 per calendar day, in addition to further damages, fees, and costs.

Questions Presented

1. Whether filing and pursuing New York state-court papers seeking a secondary determination or enforcement of prepetition domestic support obligations previously liquidated by the bankruptcy court violated the automatic stay.
2. Whether Elaine Demos's conduct constituted a willful violation of the automatic stay under 11 U.S.C. § 362(k).
3. Whether the debtor was entitled to actual damages, including attorneys' fees and costs, and whether remedial or punitive sanctions were warranted.

Disposition

other