In re Wilcox, Bankruptcy No. 98-3017.
| Decision Date | 24 November 1998 |
| Docket Number | Bankruptcy No. 98-3017. |
| Parties | In re Eddie/Jennifer WILCOX, Debtors. Deborah Murray, et al., Plaintiffs, v. Eddie Ray Wilcox, Jr., Defendant. |
| Court | United States Bankruptcy Courts. Sixth Circuit. U.S. Bankruptcy Court — Northern District of Ohio |
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Thomas G. Mackin, Toledo, OH, for plaintiff.
William J. Brenner, Stryker, OH, for defendant/debtor.
This cause comes before the Court upon the Plaintiff's Motion for Summary Judgment, Memorandum in Support, and Reply; and the Defendant's Motion in Opposition and Memorandum in Support. This Court has reviewed the arguments of counsel, exhibits, as well as the entire record in the case. Based upon that review, and for the following reasons, the Court finds that the Plaintiff's Motion for Summary Judgment should be granted, and that the Defendant's debt to the Plaintiff, in the amount of Two Hundred Fifty-three Thousand One Hundred Thirty-seven and 91/100 Dollars ($253,137.91), is Nondischargeable pursuant to 11 U.S.C. § 523(a)(6).
On December 10, 1997, the Defendant (hereinafter "Debtor") filed a Voluntary Petition for Bankruptcy under Chapter 7 of the United States Bankruptcy Code. In his Petition the Debtor listed the Plaintiff as a creditor holding an unsecured nonpriority claim. Plaintiff's claim against the Debtor stems from an incident that took place between the Debtor and a third party by the name of Mr. Eugene L. Kreischer. The facts of this case indicate that during the late evening hours of October 4, 1986, the Debtor struck Mr. Kreischer in the face with his fist. The force of this blow was such that Mr. Kreischer fell to the ground, striking his head on the curb. The injuries Mr. Kreischer sustained from the fall eventually resulted in his death. At the time of the incident the Debtor was 16 years of age.
On October 5, 1987, the Plaintiff, in her personal capacity and as a personal representative of Mr. Kreischer, filed a complaint in the Court of Common Pleas of Williams County, Ohio, against the Debtor for willful and malicious assault and battery. Three days later the Debtor, who was at that time 17 years old, accepted service of the complaint. In March of 1988 the Debtor, who was then 18 years of age, was deposed in the state court proceeding. However, the Debtor failed to file an Answer, and on May 8, 1989, the Williams County Court of Common Pleas granted the Plaintiff's Motion for Summary Judgment. Thereafter, on July 14, 1994, the Williams County Court held a hearing to assess damages; however, the Debtor failed to attend this hearing. The Williams County Court then issued a judgment entry stating that pursuant to its Order entered May 17, 1989, the Defendant was, (1) liable for the assault and battery upon Mr. Kreischer, and (2) the Debtor's conduct towards Mr. Kreischer had been both willful and malicious. The Williams County Court then awarded the Plaintiff damages totaling Two Hundred Fifty-three Thousand One Hundred Thirty-seven and 91/100 Dollars ($253,137.91), of which Two Hundred Thousand Dollars ($200,000.00) were Compensatory Damages, Three Thousand Thirty-five and 41/100 Dollars ($3035.41) were for reasonable funeral and burial expenses, and Fifty Thousand Dollars ($50,000.00) were for Punitive Damages.1
On January 22, 1998, the Plaintiff filed an Adversarial Complaint against the Debtor, in this Court, to Determine that her state claim against the Debtor was a Nondischargeable debt. The basis for the complaint is that the debt arose from a claim that was based on both willful and malicious conduct by the Debtor, and thus is excepted from discharge pursuant 11 U.S.C. § 523(a)(6).
On September 18, 1998, after this case had been submitted to the Court on the Plaintiff's Summary Judgment Motion, but before a decision was rendered, the Parties agreed to settle the matter. The Court was advised at this time that a settlement entry would be forthcoming within 30 days. On October 19, 1998, after receiving no settlement entry, this Court, in the interest of encouraging and facilitating settlements, granted an additional 30-day extension. However, as of November, 23, 1998, the Court has yet to receive the Parties' settlement entry. Consequently, as the Parties have failed to comply with the time limitations imposed upon them by the Court, this decision is rendered forthwith to dispose of the matter.
Under 28 U.S.C. § 157(b)(2)(I), a determination as to the dischargeability of a particular debt is a core proceeding. Thus, this matter is a core proceeding.
This matter is before the Court upon the Plaintiff's Motion for Summary Judgment. A movant will prevail on a Motion for Summary Judgment if, "the pleadings, depositions, answers to interrogatories, and admission on file, together with affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law." Celotex Corp. v. Catrett, 477 U.S. 317, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986), Fed. R.Civ.P. 56(c), Fed.R.Bankr.P. 7056. In order to prevail, the movant must demonstrate all elements of the cause of action. R.E. Cruise Inc. v. Bruggeman, 508 F.2d 415, 416 (6th Cir.1975). Thereafter, the opposing party must set forth specific facts showing there is a genuine issue for trial. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 250, 106 S.Ct. 2505, 2511, 91 L.Ed.2d 202 (1986). Inferences drawn from the underlying facts must be viewed in a light most favorable to the party opposing the motion. Matsushita v. Zenith Radio Corp., 475 U.S. 574, 586-588, 106 S.Ct. 1348, 1356, 89 L.Ed.2d 538 (1986); See also In re Bell, 181 B.R. 311 (Bankr. N.D.Ohio 1995). In addition, the party contesting the dischargeability of a debt under § 523(a)(6) has the burden of proving, by a preponderance of the evidence, that the debtor's conduct was both wilful and malicious. Grogan v. Garner, 498 U.S. 279, 111 S.Ct. 654, 112 L.Ed.2d 755 (1991); Spilman v. Harley, 656 F.2d 224, 229 (6th Cir.1981); In re Kimzey, 761 F.2d 421, 424 (7th Cir.1985); Homan v. Perretti, 172 B.R. 214, 216 (Bankr. N.D.Ohio 1994). Applying these standards, this Court finds that there is insufficient evidence before it to make an independent determination as to whether the Debtor's conduct towards Mr. Kreischer was both willful and malicious.
However, the Plaintiff puts forth an alternative basis for recovery. In her complaint, the Plaintiff seeks to prevent a trial in this case by asking this Court to accept the findings of the Ohio state court, which had already found Mr. Kreischer's death to have been the result of the Debtor's willful and malicious conduct. In effect, the Plaintiff asserts that the Debtor is collaterally estopped, by the findings of the Ohio state court, to contest the nondischargeability of his debt to the Plaintiff.
Collateral estoppel, also known as "issue preclusion," prevents the same parties or their privies from re-litigating facts and issues in a subsequent suit that were fully litigated in a prior suit. Thompson v. Wing, 70 Ohio St.3d 176, 183, 637 N.E.2d 917, 923 (1994).2 Collateral estoppel principles apply to bankruptcy proceedings and can be used in nondischargeability actions to prevent re-litigation of issues already decided in a state court. Grogan v. Garner, 498 U.S. 279, 111 S.Ct. 654, 112 L.Ed.2d 755 (1991). However, when applying collateral estoppel principles from a state court judgment to a nondischargeability proceeding, the Supreme Court of the United States has held that the federal common law does not apply. Marrese v. American Academy of Orthopaedic Surgeons, 470 U.S. 373, 374, 105 S.Ct. 1327, 1328, 84 L.Ed.2d 274 (1985); In re Calvert, 105 F.3d 315, 317 (1997). Instead, the bankruptcy courts, pursuant to the full faith and credit principals of 28 U.S.C. § 1738, must give the same issue preclusion effect to a state court judgment as it would be given under that state's law. Id. Consequently, this Court will look to Ohio law to determine if an Ohio state court would give issue preclusion effect to the judgment rendered by the Williams County Court.
Under Ohio law, collateral estoppel comprises the following four elements:
Cashelmara Villas Ltd. Partnership v. Di-Benedetto, 87 Ohio App.3d 809, 813-14, 623 N.E.2d 213 (1993), quoting Monahan v. Eagle Picher Industries, Inc., 21 Ohio App.3d 179, 180-81, 486 N.E.2d 1165 (1984). In addition, the burden is upon the party seeking to invoke collateral estoppel to prove that all the elements of the doctrine apply. See Monahan v. Eagle Picher Industries, Inc., 21 Ohio App.3d 179, 180-181, 486 N.E.2d 1165 (1984); LaBonte v. LaBonte, 61 Ohio App.3d 209, 216, 572 N.E.2d 704 (1988). In the case sub judice, only the first three of the above elements present any sort of issue. Accordingly, this Court will only address those elements.
The first element of collateral estoppel requires that there be a final judgment on the merits after a full...
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