Estate of Jackson v. Hardaway (In re Hardaway)

558 B.R. 831, 76 Collier Bankr. Cas. 2d 617, 2016 Bankr. LEXIS 3627
CourtUnited States Bankruptcy Court, E.D. Michigan
DecidedOctober 5, 2016
DocketCase No. 15-40281; Adversary Proceeding No. 15-4360-PJS
StatusPublished

This text of 558 B.R. 831 (Estate of Jackson v. Hardaway (In re Hardaway)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Estate of Jackson v. Hardaway (In re Hardaway), 558 B.R. 831, 76 Collier Bankr. Cas. 2d 617, 2016 Bankr. LEXIS 3627 (Mich. 2016).

Opinion

Opinion (1) Granting Plaintiff’s Motion For Summary Judgment; (2) Denying Defendant’s Motion For Summary Judgment; And (3) Abstaining From Further Proceedings -

Phillip J. Shefferly, United States Bankruptcy Judge

Introduction

This matter is before the Court on cross motions for summary judgment with respect to a complaint to determine the non-dischargeability of a debt under § 523(a)(6) of the Bankruptcy Code. The plaintiff is the personal representative of an individual who was fatally shot by the defendant, the debtor in this Chapter 7 case. The plaintiff and the defendant have both moved for summary judgment. For the reasons set forth in this opinion, the Court will grant the plaintiffs motion for summary judgment, deny the defendant’s motion for summary judgment, and abstain from further proceedings regarding the plaintiffs claim against the defendant.

Jurisdiction

The District Court for the Eastern District of Michigan has jurisdiction over this adversary proceeding pursuant to 28 U.S.C. § 1334(a) and (b). Pursuant to 28 U.S.C. § 157(a) and E.D. Mich. LR 83.50(a), the District Court has referred this adversary proceeding to the Bankruptcy Court. Although the complaint in this adversary proceeding alleges a claim for a personal injury tort and wrongful death, which can only be tried by the District Court pursuant to 28 U.S.C. § 157(b)(5), the determination of whether-the claim is nondischargeable is a core proceeding which this Court may hear and determine under 28 U.S.C. § 157(b)(2)(I).

The parties do not request in their cross motions for summary judgment that this Court adjudicate whether the defendant is [834]*834liable on the plaintiffs claim for personal injury tort and wrongful death, but only whether such claim is nondischargeable under § 523(a)(6) of the Bankruptcy Code. The parties expressly consent to the Court making a final judgment regarding nondis-chargeability under § 523(a)(6).

The Court finds that it has the statutory and constitutional authority to make such determination in this core proceeding, leaving the adjudication of the defendant’s liability on the plaintiffs claim for personal injury tort and wrongful death and the liquidation of the amount of such claim to another court of competent jurisdiction.

Facts

Based on its review of the cross motions for summary judgment and the papers filed in support of the cross motions, the Court finds that the following facts are not in dispute.

Early in the morning on December 29, 2012, Tony Leridge Jackson (“Jackson”) was fatally shot by Terrill Hardaway (“Hardaway”) outside of the Four Winds Lounge in Detroit, Michigan. Hardaway was charged with second degree murder for the shooting. On November 11, 2014, the criminal trial against Hardaway commenced in the Wayne County Circuit Court, case no. 14-3105 (“Criminal Case”). Following a jury trial, Hardaway was convicted of voluntary manslaughter and sentenced under Michigan Compiled Laws § 750.321. On December 23, 2014, Latonya Jackson, as the personal representative of Jackson’s estate (“Personal Representative”) filed a civil complaint in the Wayne County Circuit Court, case no. 14-016275-NO (“Civil Case”), against Hardaway and other defendants, alleging multiple counts, including wrongful death and assault and battery.

On January 12, 2015, Hardaway filed this Chapter 7 case. On April 20, 2015, the Personal Representative filed a one count complaint in this adversary proceeding seeking a determination that the Personal Representative’s claim in the Civil Case is nondischargeable under § 523(a)(6) of the Bankruptcy Code because it is for a willful and malicious injury by Hardaway. On May 7, 2015, Hardaway filed an answer to the complaint admitting that he was convicted in the Criminal Case of voluntary manslaughter for the shooting of Jackson, but denying that the Personal Representative’s claim is nondischargeable under § 523(a)(6).

On July 20, 2015, the Court held an initial scheduling conference. The Court conferred with the Personal Representative and Hardaway about some of the jurisdictional issues implicated in this adversary proceeding. The Court observed that the Personal Representative’s claim against Hardaway is a personal injury tort and wrongful death claim, and that 28 U.S.C. § 157(b)(5) states that the District Court, and not the Bankruptcy Court, shall try any personal injury tort and wrongful claim in a bankruptcy case. The Court explained that because of this provision, it cannot adjudicate the issue of whether Hardaway is liable on the Personal Representative’s claim, but must either refer the adjudication of that claim to the District Court under 28 U.S.C. § 157(b)(5), or permit the parties to litigate that claim in the Civil Case. The Court noted, however, that this Court does have the authority under 28 U.S.C. § 157(b)(2)(I) to determine whether that claim is nondischargeable. Therefore, at the initial conference, the Court allowed the parties to conduct discovery and other pretrial proceedings in this adversary proceeding and scheduled another conference at the end of discovery to discuss any further proceedings, whether in this Court, the District Court, or the Civil Case.

[835]*835On June 6, 2016, following the close of discovery, the Court held the conference. The parties informed the Court that they now agree that the Wayne County Circuit Court should decide in' the Civil Case whether there is any liability owing by Hardaway on the Personal Representative’s claim and, if so, the amount of such liability. The parties further informed the Court that they agree that this Court should adjudicate only the issue of whether such claim is nondischargeable under § 523(a)(6).

After conferring with the parties, the Court permitted them a period of time to file cross motions for summary judgment, The Court entered an order setting a deadline to file the cross motions by July 21, 2016. The order expressly stated that “any motion for summary judgment should not address the question of whether there is any liability by [Hardaway] to the [Personal Representative], nor the amount of any such debt, but should only address whether, if there is a debt owing by [Hard-away] to the [Personal Representative], such debt is nondischargeable under § 523(a)(6).”

On July 17, 2016, Hardaway filed a motion for summary judgment. On July 21, 2016, the Personal Representative filed a motion for summary judgment. The Court construes both motions, together with the parties’ agreement placed on the record at the June 6, 2016 conference, as a stipulation by the parties, for the sole purpose of binding them in this adversary proceeding, that there is a debt owing by Hardaway to the Personal Representative, but without prejudice to their respective rights to argue otherwise in the Civil Case.

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Bluebook (online)
558 B.R. 831, 76 Collier Bankr. Cas. 2d 617, 2016 Bankr. LEXIS 3627, Counsel Stack Legal Research, https://law.counselstack.com/opinion/estate-of-jackson-v-hardaway-in-re-hardaway-mieb-2016.