General Casualty Co. v. Keating (In Re Keating)

80 B.R. 115, 1987 Bankr. LEXIS 1922, 16 Bankr. Ct. Dec. (CRR) 1253, 1987 WL 20536
CourtUnited States Bankruptcy Court, E.D. Wisconsin
DecidedDecember 2, 1987
Docket16-21191
StatusPublished
Cited by6 cases

This text of 80 B.R. 115 (General Casualty Co. v. Keating (In Re Keating)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
General Casualty Co. v. Keating (In Re Keating), 80 B.R. 115, 1987 Bankr. LEXIS 1922, 16 Bankr. Ct. Dec. (CRR) 1253, 1987 WL 20536 (Wis. 1987).

Opinion

DECISION

MARGARET DEE McGARITY, Bankruptcy Judge.

This case is an adversary proceeding commenced by plaintiff under 11 U.S.C. § 523(a)(9) 1 to determine that the obligation owed by defendant to plaintiff is nondischargeable. The defendant had previously moved for dismissal of the case as untimely under 11 U.S.C. § 523(c) and Bankruptcy Rule 4007, which motion was denied. Plaintiff now moves the Court for summary judgment under Bankruptcy Rule 7056, which incorporates by reference Rule 56 of the Federal Rules of Civil Procedure. For the reasons stated below, plaintiff’s motion is granted.

FACTS

On June 30, 1984, defendant and plaintiff’s insured, Jerry R. Asmus, were involved in an automobile accident in Ke-nosha, Wisconsin, in which defendant was at fault for having crossed the center line into plaintiff’s traffic lane. Approximately three hours after the accident, defendant’s blood alcohol concentration was tested at Kenosha Memorial Hospital and found to be .15%. Defendant has also stipulated in this action that at the time of the accident, his blood alcohol content was .15% (see stipulation dated December 4, 1986). Defendant pled no contest to criminal charges issued in connection with this accident and, as a result, was convicted of operating a motor vehicle while having a blood alcohol concentration of 0.1% or more by weight and of causing personal injury while having such blood alcohol concentration, contrary to Wis.Stat. §§ 346.63(l)(b) and (2)(a)2. 2 (Kenosha County Case No. 85-CM-6).

*117 As a result of the accident, plaintiff insurance company paid Jerry R. Asmus damages of $5,000, and plaintiff was subro-gated to this extent by assignment of its insured’s cause of action. Plaintiff filed suit against defendant in Kenosha County Circuit Court, Case No. 85-CV-1676, and obtained judgment by default on January 13, 1986, in the amount of $4,727. No amount of this judgment has been paid, although defendant had paid $400 prior to the commencement of the state court civil action.

In his answer to this adversary proceeding, defendant denied that he was legally intoxicated at the time of the accident, although this assertion has been withdrawn by stipulation and by admission in his brief (see Defendant’s Brief in Opposition to Plaintiff’s Motion for Summary Judgment, p. 3). He continues to deny that such intoxication was a factor in contributing to the damage suffered by plaintiff’s insured in the accident.

Defendant filed his voluntary Chapter 7 petition in bankruptcy on March 12, 1986, seeking discharge of this obligation.

Bankruptcy Rule 7056(c), which incorporates Rule 56 of the Federal Rules of Civil Procedure, states that upon motion for summary judgment, judgment shall be granted “if the pleadings, depositions, answers to interrogatories, and admissions on file, together with affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law.” Summary judgment in favor of a plaintiff is an extreme remedy and should only be granted if the facts pleaded or admitted by defendant are considered in a light most favorable to the defendant and if the plaintiff is nevertheless entitled to judgment as a matter of law. Brock v. American Postal Workers Union, 815 F.2d 466, 469 (7th Cir.1987). Furthermore, exceptions to discharge must be construed in favor of debt- or’s discharge and against creditors attempting to have the discharge denied. In re Kirst, 37 B.R. 275 (Bkrtcy.E.D.Wis.1983).

The relevant facts in this case, included in defendant’s stipulation and in his recital of the facts in his brief, are as follows:

1. Defendant was driving the vehicle which struck plaintiff’s insured on June 30, 1984.

2. Defendant was operating the vehicle at the time of the same accident while legally intoxicated under Wisconsin law. Defendant’s blood alcohol content was .15%, which is per se legal intoxication. Wis.Stat. §§ 346.63(l)(b) and 346.63(2)(a)2.

3. The accident occurred in the State of Wisconsin.

4. Liability on the part of defendant to plaintiff as a result of the same accident was established, and damages were determined by default judgment in Kenosha County Circuit Court, which is a court of record.

Defendant’s argument is that these facts alone are insufficient to sustain a finding of nondischargeability under 11 U.S.C. § 523(a)(9). He states that in addition there must be a finding that the defendant’s intoxication, which is admitted in his brief and sustained by his conviction under Wisconsin law, caused or was a factor in causing the accident. This interpretation is based on the statute’s wording that “liability was incurred by such debtor as a result of the debtor’s operation of a motor vehicle while legally intoxicated.” (emphasis added). In support of this argument, defendant points out that the civil judgment on its face does not make a causal connection between the intoxication and the damage. Defendant would therefore put plaintiff to its proof on that issue, thereby creating a factual dispute for trial. If the causal connection is a material fact, *118 it is disputed, and plaintiffs motion for summary judgment must be denied.

First, defendant’s interpretation of the language of 11 U.S.C. § 523(a)(9) is grammatically incorrect. He argues that it should be construed to provide that the liability must arise as a result of intoxication; however, the statute states that the cause of the defendant’s liability is “as a result of the debtor’s operation of a motor vehicle.” The phrase “while legally intoxicated” modifies the word “operation,” denoting only a condition in existence at the time of operation. If the condition exists at that moment, inquiry need go no further.

Section 523(a)(9) of Title 11 was enacted not only to prevent drunk drivers from avoiding the consequences of their actions but also to create an objective standard to determine nondischargeability in drunk driving cases. In re Cunningham, 48 B.R. 641, 644 (Bkrtcy.W.D.Tenn.1985). See also In re Richards, 59 B.R. 541, 543 (Bkrtcy.N.D.N.Y.1986); In re Adams,

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Bluebook (online)
80 B.R. 115, 1987 Bankr. LEXIS 1922, 16 Bankr. Ct. Dec. (CRR) 1253, 1987 WL 20536, Counsel Stack Legal Research, https://law.counselstack.com/opinion/general-casualty-co-v-keating-in-re-keating-wieb-1987.