In re Kalita
| Decision Date | 18 November 1996 |
| Docket Number | Bankruptcy No. 95-83316,Adversary No. 95-8293. |
| Citation | 202 BR 889 |
| Parties | In re Carla Mae KALITA, f/k/a Carla Mae Wilson, Debtor. Tammy K. VOGEL, a/k/a Tammy K. Sinkovic, Plaintiff, v. Carla Mae KALITA, f/k/a Carla Mae Wilson, Defendant. |
| Court | U.S. Bankruptcy Court — Western District of Michigan |
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Jack E. Boynton, Traverse City, MI, for Plaintiff.
Roy C. Hayes III, Charlevoix, MI, for Defendant.
SUPPLEMENTAL OPINION REGARDING POSSIBLE APPLICABILITY OF COLLATERAL ESTOPPEL
Does a Michigan state court criminal conviction for felonious assault, based upon a nolo contendere plea, collaterally estop a defendant-debtor from litigating a nondischargeability action under section 523(a)(6) of the Bankruptcy Code?1
Does a Michigan state court civil judgment for assault and battery, based upon a "true default," i.e., there was no appearance and absolutely no participation in the state court action, collaterally estop a defendant-debtor from litigating a nondischargeability action under section 523(a)(6) of the Bankruptcy Code?2
The relevant factual background and procedural history which give rise to this motion for summary judgment are essentially undisputed. On August 25, 1984, Tammy K. Vogel (a/k/a Tammy K. Sinkovic) ("Vogel") and Carla Mae Kalita (f/k/a Carla Mae Wilson) ("Kalita") were involved in an altercation in which Vogel was injured. This incident resulted in a criminal prosecution against Kalita. On June 28, 1985, Kalita was convicted of the crime of felonious assault. See Mich. Comp.Laws Ann. § 750.82. The 1985 Judgment of Sentence indicates that Kalita's conviction was based on a plea of "n.c." or "nolo contendere." See Plaintiff's Brief, Exhibit B. In an affidavit attached to her Brief in Opposition to Plaintiff's Motion for Summary Judgment, Kalita stated the reason for her nolo contendere plea: "That on or about June 28, 1985 affiant pleaded no contest to the criminal charge of Felonious Assault, because she was told by her attorney she could not get a fair trial on account of small town politics in the town of Pinckney, Michigan." See Kalita's Affidavit, ¶ 14.
On May 13, 1985, Vogel filed a civil complaint against Kalita in the Michigan State Circuit Court for the County of Livingston. The complaint alleged that on or about August 25, 1984, "Defendant did assault and batter the Plaintiff with a knife," and, as a result, Vogel "sustained physical injuries, including, but not limited to, multiple lacerations and stab wounds to her abdomen, face, and upper extremities." Based on these allegations, Vogel claimed damages in excess of $10,000. A copy of the 1985 complaint was attached as Exhibit A to Plaintiff's Brief in Support of Motion for Summary Judgment ("Plaintiff's Brief").
Kalita was served with the civil complaint dated May 13, 1985, but failed to answer or appear. On November 25, 1985, a Default Judgment was entered in favor of Vogel and against Kalita in the amount of $25,000.00, plus taxable costs and interest. See Plaintiff's Brief, Exhibit D. In her Brief in Opposition and the accompanying affidavit, Kalita attempted to explain the circumstances which led to the 1985 default judgment. Kalita claims that she "took no steps to defend Ms. Vogel's civil suit, because she had given the complaint to her attorney who told her he would take care of it." See Kalita's Affidavit, ¶ 16. Moreover, Kalita claims that she was incarcerated on the Felonious Assault charge when the November 25, 1985 default judgment was entered against her. See Kalita's Affidavit, ¶ 15.
Apparently, Vogel did not have much success in collecting the damages awarded against Kalita in the 1985 Judgment. Ten years later, Vogel filed another complaint in the Michigan Circuit Court for the County of Livingston to renew the 1985 Judgment. See Plaintiff's Brief, Exhibit E. The 1995 Complaint recited the basis for the original 1985 judgment for $25,000 and claimed additional interest in the amount of $44,554.89 based on a 12% interest rate compounded annually.
On May 26, 1995, the state circuit court entered another judgment against Kalita in the amount of $69,641.89, representing the original 1985 judgment plus accrued interest. See Plaintiff's Brief, Exhibit F. In her Brief in Support, Vogel alleges that the 1995 complaint was properly served on Kalita and that she failed to respond. Kalita does not dispute this contention.
On July 3, 1995, Kalita filed a Voluntary Petition under chapter 7 of the Bankruptcy Code. On August 21, 1995, Vogel filed an adversary proceeding in which she alleged that the debts arising from the civil judgments were based on Kalita's willful and malicious conduct. Vogel seeks a determination that the judgment debt is excepted from discharge under section 523(a)(6).
In her Motion for Summary Judgment and Brief in Support, Vogel argues that she is entitled to judgment as a matter of law on her nondischargeability action against Kalita. Specifically, Vogel contends that Kalita's state court conviction for felonious assault and the subsequent civil judgments for assault and battery were based on Kalita's willful and malicious conduct. Therefore, Vogel asserts that Kalita is collaterally estopped from defending the facts in the current nondischargeability action.
In response, Kalita raises a factual issue by claiming that she was acting in self-defense at the time she stabbed and slashed Vogel with a "fishing fillet knife" during the 1984 altercation. See Kalita's Affidavit. Kalita argues that her criminal conviction was based on a plea of nolo contendere which is not entitled to preclusive effect in any subsequent civil actions. She also contends that both the 1985 civil judgment and the 1995 judgment were based on "true defaults" and that the issues were not actually litigated. Thus, Kalita concludes that the state court criminal and civil judgments do not collaterally estop her in this adversary proceeding.3
This court has jurisdiction over the base bankruptcy case and this adversary proceeding. 28 U.S.C. § 1334; W.D.MICH.L.R. 57 (). This adversary proceeding is a core proceeding. 28 U.S.C. § 157(b)(2)(l).
Rule 7056 of the Federal Rules of Bankruptcy Procedure incorporates by reference Rule 56 of the Federal Rules of Civil Procedure which provides in part:
The judgment sought shall be rendered forthwith if the pleading, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law.
FED.R.CIV.P. 56(c). The party moving for summary judgment bears the initial responsibility of informing the court of the basis of its motion and identifying those portions of the record which demonstrate the absence of a material issue of fact. Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 2552-53, 91 L.Ed.2d 265 (1986). Once the moving party has met its initial burden, the nonmoving party must come forward with specific facts showing that there is a genuine issue of material fact on which the nonmoving party will bear the burden of proof at trial. FED. R.CIV.P. 56(e); Celotex, 477 U.S. at 322-24, 106 S.Ct. at 2552-53. If, after adequate discovery, the party bearing the burden of proof fails to make a showing sufficient to establish an essential element of his claim, summary judgment is appropriate. Id.
As the moving party, Vogel has met her initial burden of advising the court of the basis for her motion and identifying the relevant portions of the record which demonstrate an absence of material issues of fact. Vogel has provided the court with copies of the state court judgments and the related civil complaints. Kalita does not contest the authenticity or admissibility of any of the state court pleadings or documents submitted by Vogel. Instead, Kalita challenges the preclusive effect of the prior judgments on the instant proceeding. This is an issue of law which can, and should, be resolved through summary judgment.4 Under these circumstances, Vogel bears the burden of establishing that the requirements of collateral estoppel have been met. Spilman v. Harley, 656 F.2d 224, 229 (6th Cir.1981).
In her legal memorandum, Vogel addresses the "confusingly related and often carelessly mis-named doctrines of collateral estoppel, res judicata, issue preclusion and claim preclusion. . . ." See Plaintiff's Brief, p. 3. While Vogel may be correct in describing the doctrines of res judicata and collateral estoppel as "confusingly related and often carelessly mis-named," they are not the same. The difference between res judicata ("claim preclusion") and collateral estoppel ("issue preclusion") has been explained as follows:
The primary difference between res judicata and collateral estoppel, as developed in Cromwell v. County of Sac, 94 U.S. 351, 24 L.Ed. 195 (1877) is that res judicata bars a second action on the same claim or cause of action including all matters that were raised or could have been raised in the first action, while collateral estoppel precludes relitigation of only such issues as were actually raised, litigated and determined in the first action and the decision of which were necessary to the judgment rendered.
1B JAMES WM. MOORE, ET AL., MOORE'S FEDERAL PRACTICE ¶ 0.4433 (2d ed. 1995).
The distinction between res judicata and collateral estoppel has also been observed by the United States Supreme Court in the context of bankruptcy proceedings involving exceptions to discharge. In Brown v. Felsen, 442 U.S. 127, 138-39, 99 S.Ct. 2205, 2212-13, 60 L.Ed.2d 767 (1979), the Supreme Court held that the doctrine of res judicata does not apply in bankruptcy dischargeability proceedings. The Brown case involved a...
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