Tuesday, May 25, 2010

Debtor Collaterally Estopped from Relitigating Section 523(a)(6) Issue

In re Moore, 346 Fed.Appx. 321 (10th Cir. 2009). Debtor appealed the district court's judgment affirming the bankruptcy court's granting of summary judgment in favor of plaintiff on non-dischargeability adversary claim brought pursuant to Section 523(a)(6)'s willful and malicious standard. Debtor had been found liable prepetition to plaintiff in a California state civil proceeding for intentional infliction of emotional distress.


Consequently, the bankruptcy granted summary judgment against debtor because that court believed debtor was collaterally estopped from relitigating whether plaintiff's debt was the result of a willful and malicious injury. Therefore, the debt was deemed non-dischargeable pursuant to Section 523(a)(6).
 
Warmest Regards,

Bob Schaller

Your Bankruptcy Advisor

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