10-12596 In re Horsfall

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Bankruptcy
Nondischargeability; issue preclusion

A grant of summary judgment in state court on a tortious interference with contract claim does not preclude the defendant from discharging the debt in bankruptcy.

“First Weber faced a lower burden of proof in the state court than it has now. All First Weber did in state court was prove a prima facie case for its tortious interference with a contract claim See Wis. Stat. 802.08(2). See also TEWS v. NHI, LLC, 2010WL 5599976 (Wis.2010)(requiring circuit courts to determine whether the moving party has established a prima facie case before granting summary judgment). Wisconsin courts have long characterized a prima facie case as one ‘established only when evidentiary facts are stated which, if they remain uncontradicted by the opposing party’s affidavits, resolve all factual issues in the moving party’s favor.’ Walter Kassuba, Inc., v. Bauch, 38 Wis.2d 648 (Wis.1968). This burden of proof is significantly lower than a plaintiff having to prove its case by a preponderance of the evidence as required in a case seeking the nondischargeability of a claim.”

10-12596 In re Horsfall

W.D.Wis., Martin, Bankr. J.