Alexander v. Donnelly (In Re Donnelly)

6 B.R. 19
CourtUnited States Bankruptcy Court, D. Oregon
DecidedJuly 25, 1980
Docket14-60615
StatusPublished
Cited by20 cases

This text of 6 B.R. 19 (Alexander v. Donnelly (In Re Donnelly)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, D. Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alexander v. Donnelly (In Re Donnelly), 6 B.R. 19 (Or. 1980).

Opinion

MEMORANDUM OPINION

HENRY L. HESS, Jr., Bankruptcy Judge.

On November 15, 1978 the plaintiff received a judgment in the Circuit Court of the State of Oregon for Marion County in the amount of $6,000 together with interest thereon and costs and disbursements in the amount of $127.96. The plaintiff in his complaint in this case seeks an order of the court holding that the defendant’s liability upon the judgment is not dischargeable under 11 U.S.C. § 523(a)(6). At the trial the plaintiff appeared in person and by his attorney, Joseph E. Penna, and the defendant appeared in person and by her attorney, Thomas W. Churchill. The proceedings were reported by Caroline Thill-Alien.

The evidence in this case shows that the plaintiff and defendant had been seeing *21 each other socially for over a year prior to July 29, 1977. On that day they travelled in the plaintiff’s automobile from Salem, where they both lived, to Aurora to browse for antiques. After the closing of the antique shops they went to a local tavern. There they ate, drank, played pool and visited with other patrons. There the plaintiff and defendant got into an argument. Upon leaving the tavern the argument continued as the defendant drove the automobile toward Salem. At one point the defendant stopped her car and asked the plaintiff to get out. The plaintiff insisted that she drive him to his home. Shortly afterward the defendant crossed over into the oncoming traffic lane. She stayed in this lane for a few seconds until she observed an approaching vehicle. She then brought her car back into her own lane, onto the shoulder, into a ditch and hit an obstruction. Both the plaintiff and the defendant were injured. Later the defendant entered a plea of guilty to a charge of reckless driving. The plaintiff instituted an action for personal injuries which resulted in the judgment above mentioned.

The judgment was based upon a verdict of the jury which found that the defendant was grossly negligent in either failing to keep her automobile under proper control or in driving on the left hand lane of a two lane highway. The jury found that 50% of the negligence contributing to the accident was the negligence of the plaintiff.

The plaintiff contends that the term “gross negligence” is the equivalent of the term “willful and malicious” used in § 523(a)(6) and that therefore, under the doctrine of res judicata, the court must find the judgment to be non-dischargeable. The plaintiff also contends that under the doctrine of res judicata the plea of guilty to the charge of reckless driving establishes that the plaintiff’s damages were the result of a willful and malicious act.

ORS 30.115(2) provides that:

“ ‘gross negligence’ refers to negligence which is materially greater than the mere absence of reasonable care under the circumstances, and which is characterized by conscious indifference to or reckless disregard of the rights of others.”

ORS 487.550 provides that:

“A person commits the crime of reckless driving if he drives a vehicle upon a highway carelessly and heedlessly in wilful and wanton disregard of the rights or safety of others.”

In order for a debt to be non-dischargea-ble under § 523(a)(6) the court must find that the debt was for a willful and malicious injury. Under the old Bankruptcy Act, the same provision contained in § 17(a)(8) was variously interpreted. Following the lead case, Tinker v. Colwell, 193 U.S. 473, 24 S.Ct. 505, 48 L.Ed. 754 (1904), two lines of cases developed concurrently. Some of the cases equated “willful and malicious” with “gross negligence” while other cases equated the term with “deliberate and intentional.” Under the new Bankruptcy Code the Senate Judiciary Committee’s comments to § 523(a)(6) opted for the latter approach:

“Paragraph (5) [sic] provides that debts for willful and malicious conversion or injury by the debtor to another entity or the property of another entity are nondis-chargeable. Under this paragraph willful means deliberate or intentional. To the extent that Tinker v. Colwell, 139 U.S. [193 U.S. 473, 24 S.Ct. 505, 48 L.Ed. 754] (1902), held that a less strict standard is intended, and to the extent that other cases have relied on Tinker to apply a reckless disregard standard, they are overruled.” (Senate Report (Judiciary Committee) No. 95-989, July 14, 1978.)

Of the two lines of cases mentioned above the rule of better reasoning is that which equates “willful and malicious” with “deliberate and intentional”. In the case of Security Mutual Casualty Company v. Rainey, 1 B.R. 569, 5 BCD 1210, (D.Or.1979), Judge Folger Johnson of this court said:

“In In Re Moya, 3 BCD 520 (S.D.Cal.1977), where a bankrupt seeking discharge had lost control of his car while driving under the influence of alcohol and had caused a passenger in his car to be ejected and killed the court concluded *22 that his actions were not of the ‘grossest’ type which the U. S. Supreme Court had in mind for dischargeability when deciding Tinker. Confronting Tinker head on, the Bankruptcy Court for the Southern District of California attempted to show that the Supreme Court had addressed only the narrow facts of a criminal conversation action, and that its opinion should be read in the same limited manner. The bankruptcy judge further analyzed that courts reading Tinker so broadly as to apply to auto accident cases have done so erroneously out of a desire to ‘legislate’ a policy of safe driving. 3 BCD at 521-22. The court quoted from a state appellate opinion which labored over a definition of malice in a drunk driving case: ‘One who becomes intoxicated, knowing that he intends to drive his automobile on the highway, is of course negligent, and perhaps grossly negligent. It is a reckless and wrongful and illegal thing to do. But it is not a malicious act.’ ”

In the Rainey case Judge Johnson concluded:

“ * * * It appears safe to say that if a person knows that the consequences from his actions are certain, or substantially certain, to occur and yet goes ahead with those actions, the injuries or damages he causes thereby are ‘necessarily’ caused. The indisputably wrongful actions of the bankrupt-driving his parents’ car without permission with a mere learner’s permit and at 44 m.p.h. on a residential street and even if partially under the influence of alcohol-are not acts which in themselves would necessarily produce injury or damage with the kind of “substantial certainty” required for “willful” under § 17a(8). Even if an intention were found, something more than intention to do the thing afterwards pronounced as wrong and inexcusable is necessary to fulfill the “malice” requisite under § 17a(8). In Re Carncross, 114 F.Supp.

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Bluebook (online)
6 B.R. 19, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alexander-v-donnelly-in-re-donnelly-orb-1980.