Litigation

The U.S. District Court for the Southern District of New York has held that a woman who accepted the discharge of her ex-husband's debts to her in a bankruptcy proceeding is bound by that acceptance, even though she argued that the debt was non-dischargeable in bankruptcy because it was a support obligation. Penberthy v. Chickering, 2017 U.S. Dist. LEXIS 6153 (S.D.N.Y. 1/13/17).

Beverly Penberthy and Donn A. Chickering entered into a Stipulation of Settlement in conjunction with their divorce proceedings on Feb. 2, 1994, providing that:

• Chickering would immediately pay $1 million to Penberthy, which the document termed a “distributive award”;
• Penberthy would take sole ownership of the marital residence in Rye, NY, along with two vehicles;
• Chickering would cover the costs of Penberthy's medical care for three years by maintaining insurance for her and paying any medical costs not covered by it, unless Penberthy received free insurance from her employer; and
• Chickering would pay Penberthy “as and for her support and maintenance,” $83,333 per month for a six-year term, which payments would total $6 million.

The settlement agreement was incorporated in the Judgment of Divorce, which was finalized on July 25, 1994.