Bristol Lumber Co. v. Hopkins (In Re Hopkins)

82 B.R. 952, 1988 Bankr. LEXIS 132, 17 Bankr. Ct. Dec. (CRR) 115, 1988 WL 10791
CourtUnited States Bankruptcy Court, N.D. Illinois
DecidedFebruary 2, 1988
Docket19-05057
StatusPublished
Cited by17 cases

This text of 82 B.R. 952 (Bristol Lumber Co. v. Hopkins (In Re Hopkins)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bristol Lumber Co. v. Hopkins (In Re Hopkins), 82 B.R. 952, 1988 Bankr. LEXIS 132, 17 Bankr. Ct. Dec. (CRR) 115, 1988 WL 10791 (Ill. 1988).

Opinion

MEMORANDUM OPINION AND ORDER

RICHARD N. DeGUNTHER, Bankruptcy Judge.

This matter comes before the Court on the Motion of the Bristol Lumber Co. (Plaintiff) for Summary Judgment. The Plaintiff is represented by Attorney Daniel A. Fish. The Debtors are represented by Attorney David M. Kaleel.

This Memorandum Opinion and Order shall represent findings of fact and conclusions of law pursuant to Rule 7052 of the Federal Rules of Bankruptcy Procedure.

On April 16, 1981, Bart Hopkins (the Debtor), after drinking, lit a cardboard box on the property of the Plaintiff. The ensuing fire caused approximately $30,000 of damage. The Debtor was arrested and charged with the offense of criminal damage to property pursuant to Ill.Rev.Stats. ch. 38, Paragraph 21-l(a), a class 4 felony. On July 27,1981, the Debtor pleaded guilty to the charge of criminal damage to property and was sentenced sometime thereafter. At the hearing in which the Debtor pleaded guilty, an offer of proof was read into the record. The offer of proof indicates that the Debtor did in fact light a fire on the property of the Plaintiff and the damage caused was in excess of $150.00 (the dollar amount in Illinois to distinguish a misdemeanor from a felony). The Debtor stipulated to the offer of proof.

Sometime thereafter, the Plaintiff filed a civil suit in Lee County Circuit Court, Lee County, Illinois, alleging damages of $29,-556.91 plus costs of $83.00. On September 21, 1984, a default judgment was entered against the Debtor in the above-stated amounts. The default judgment recites that the damage was the result of willful and intentional acts of the Debtor.

Mr. and Mrs. Hopkins filed for relief under Chapter 7 of the Code on January 22, 1987. The present Complaint to Determine the Dischargeability of a Debt was filed on April 30, 1987.

To answer the Motion for Summary Judgment, the Debtor filed an Affidavit. In the Affidavit, the Debtor states that he started the fire but did not intend to burn down the lumber yard. He states that he was intoxicated. He states further that he only pled guilty to criminal damage to property because he was threatened with a charge of arson and a prison sentence.

Section 523(a)(6) provides:

(а) A discharge under Section 727, 1141, or 1328(b) of this title does not discharge an individual debtor from any debt—******
(б) for willful and malicious injury by the debtor to another entity or to the property of another entity.

11 U.S.C. Section 523(a)(6).

In order for a debt to be declared non-dischargeable pursuant to Section 523(a)(6), the creditor has the burden of proving that the injury was caused by an act that was both willful and malicious. United Bank of Southgate v. Nelson, 35 B.R. 766 (N.D.Ill.1983). Case law defines willful as an “intentional or deliberate” act. In re Weingarten, 49 B.R. 881 (Bankr.N.D.Oh. 1985); In re Emporelli, 42 B.R. 814 (Bankr.W.D.Pa.1984); and, In re Meyer, 7 B.R. 932 (Bankr.N.D.Ill.1981). A malicious act is one “in which the debtor knows his act would harm the creditor’s interest and proceeds in the face of the knowledge.” United Bank of Southgate v. Nelson.

In support of its Motion for Summary Judgment, the Plaintiff argues that all of the elements under Section 523(a)(6) are established from the Debtor’s plea of guilty to criminal damage to property and the default judgment. The Debtor con *954 tends that the plea of guilty to the charge of criminal damage to property was made only to avoid being tried for the offense of arson, which carries with it the possible penalty of a prison sentence; as such, the charge of criminal damage to property does not carry with it a penalty sufficiently stiff to have deterred the Debtor from pleading guilty when in fact he was innocent. The Debtor argues further that since the civil judgment was a default judgment, the Plaintiff had the opportunity to include anything in the final judgment he wished, including a finding that the act was willful and malicious. As affirmative and meritorious defenses, the Debtor claims that he was intoxicated and did not intend to burn down the entire lumber yard.

In Brown v. Felsen, 442 U.S. 127, 99 S.Ct. 2205, 60 L.Ed.2d 767 (1979), the Supreme Court found that the bankruptcy court may, but need not, apply the doctrine of collateral estoppel to prevent the relit-igation of issues if the record of the previous case warrants such application. Collateral estoppel is properly applied when:

1. The issues sought to be precluded are the same as those involved in the prior action;

2. They are determined by a valid and final judgment;

3. The determination must have been essential to the prior judgment; and,

4. The issues must have been actually litigated.

In re Ross, 602 F.2d 604 (3rd Cir.1979); In re McMillan, 579 F.2d 289 (3rd Cir. 1978); United States Life Title Ins. Co. v. Dohm, 19 B.R. 134 (N.D.Ill.1982).

In this case, the issues involved in the state criminal suit are the same as in this non-dischargeability suit. Section 21-l(a) of the Illinois Criminal Code provides:

Any of the following acts, except any act described in paragraph (g), is a Class A misdemeanor and any act enumerated in paragraph (a) or (f) when the damage to property exceeds $150 is a Class 4 felony;
(a) Knowingly damages any property of another without his consent;

Ill.Rev.Stat. ch. 38, Paragraph 21-l(a) (1980). Section 4-5 of the Criminal Code provides:

Knowledge. A person knows, or acts knowingly or with knowledge of:
(a) The nature or attendant circumstances of his conduct, described by the statute defining the offense when he is consciously aware that his conduct is of such nature or that such circumstances exist. Knowledge of a material fact includes awareness of the substantial probability that such fact exists.
(b) The result of his conduct, described by the statute defining the offense, when he is consciously aware that such result is practically certain to be caused by his conduct.
Conduct performed knowingly or with knowledge is performed wilfully, within the meaning of a statute using the latter term, unless the statute clearly requires another meaning.

Ill.Rev.Stat. ch. 38, Paragraph 4-5 (1980).

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Cite This Page — Counsel Stack

Bluebook (online)
82 B.R. 952, 1988 Bankr. LEXIS 132, 17 Bankr. Ct. Dec. (CRR) 115, 1988 WL 10791, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bristol-lumber-co-v-hopkins-in-re-hopkins-ilnb-1988.