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Bankruptcy – nondischargeability — issue preclusion
By: WISCONSIN LAW JOURNAL STAFF//December 23, 2013//
Bankruptcy – nondischargeability — issue preclusion
By: WISCONSIN LAW JOURNAL STAFF//December 23, 2013//
Listen to this articleUnited States Court of Appeals For the Seventh Circuit
Civil
Bankruptcy – nondischargeability — issue preclusion
State court judgments for conversion and tortious interference are insufficient to support an exception from discharge as a debt arising from a “willful and malicious injury.”
“If accepted, First Weber’s position would risk transforming every state-law intentional tort into a non-dischargeable debt, contrary to the Supreme Court’s opinion in Geiger. That problem, added to ‘the strong policy of the Bankruptcy Code of providing a debtor with a “fresh start,”’ see Meyer v. Rigdon, 36 F.3d 1375, 1385 (7th Cir. 1994), leads us to conclude that the state court’s decision did not preclude Horsfall from litigating the issue of willfulness in the bankruptcy case.”
Affirmed.
13-1026 First Weber Group, Inc., v. Horsfall
Appeal from the United States District Court for the Western District of Wisconsin, Conley, J., Wood, J.
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