By: WISCONSIN LAW JOURNAL STAFF//September 7, 2011//
By: WISCONSIN LAW JOURNAL STAFF//September 7, 2011//
Bankruptcy
Nondischargeability; theft by contractor
Where a debtor entered a stipulation in state court admitting liability under the theft by contractor statute, the debt is nondischargeable in bankruptcy.
“Here, the underlying judgment arose under Wisconsin’s theft by contractor statute, and while the stipulation did not admit intentional or wrongful conduct, Paragraph 2 admitted that the damages provided for were ‘caused by Defendant’s theft by contractor.’ Consequently, the defendant has admitted violation of the statute. See Klingman v. Levinson, 114 F.3d at 627 (holding stipulation waived defense of issue preclusion). The provisions of the statute meet all the elements for nondischargeability under 11 U.S.C. § 523(a)(4), the damages have been determined, and the defendant’s debt to the plaintiff is not subject to discharge.”
10-28400 In re Carlson
E.D.Wis., Mcgarity, Bankr. J.