Illinois Marine Towing, Inc. v. Barnick (In Re Barnick)

353 B.R. 233, 2006 Bankr. LEXIS 2868, 2006 WL 2925654
CourtUnited States Bankruptcy Court, C.D. Illinois
DecidedOctober 11, 2006
Docket19-70081
StatusPublished
Cited by5 cases

This text of 353 B.R. 233 (Illinois Marine Towing, Inc. v. Barnick (In Re Barnick)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, C.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Illinois Marine Towing, Inc. v. Barnick (In Re Barnick), 353 B.R. 233, 2006 Bankr. LEXIS 2868, 2006 WL 2925654 (Ill. 2006).

Opinion

OPINION

THOMAS L. PERKINS, Chief Judge.

The complaints at issue in each of the above-captioned adversary proceedings contain an allegation that a claim resulting from the Defendant’s operation of a motorboat while intoxicated is excepted from discharge under Section 523(a)(9) of the Bankruptcy Code. In each proceeding, the Defendant, Casey A. Barnick (DEBTOR), moved to dismiss those counts as failing to state a claim upon which relief can be granted. At issue is whether the scope of the pre-BAPCPA version of Section 523(a)(9), targeting drunk drivers, is broad enough to ensnare drunk boaters.

BACKGROUND

The following facts alleged in the complaints are assumed to be true for purposes of these motions. 1 On May 21, 2004, a collision occurred between a barge that was being towed by the MTV Herman Crown, a vessel owned and operated by Illinois Marine Towing, Inc. (IMT), and a 17-foot pleasure boat operated by the DEBTOR. As a result of the collision, three passengers in the DEBTOR’S boat were injured, and a fourth passenger, Eric M. Allen, died. The DEBTOR subsequently pleaded guilty to and was convicted of “Aggravated Operating a Watercraft Under the Influence of Alcohol,” a Class 2 felony, in connection with this collision. The court sentenced the DEBTOR to a 180-day term of imprisonment, suspended his sentence and placed him on probation for 36 months.

In February 2005, IMT filed a complaint in the United States District Court for the Central District of Illinois seeking exoneration from or limitation of liability for any losses, damages or injuries arising from the collision. See 46 U.S.C. § 181, et seq. Bryan J. Allen, as Administrator of the Estate of Eric M. Allen, Deceased (ALLEN), filed an answer and asserted claims against IMT in the limitation proceeding. ALLEN also filed a third party complaint in the limitation proceeding asserting claims against the DEBTOR and Billy Joe Thomas, the pilot of the IMT vessel, for wrongful death and survival under both maritime law and Illinois law. IMT filed claims against the DEBTOR for indemnity and contribution in the limitation proceeding. 2 In addition, ALLEN filed a state court action against IMT, Billy Joe Thomas and the DEBTOR.

The DEBTOR filed his petition for bankruptcy under Chapter 7 of the Bankruptcy Code on October 14, 2005. In his schedules, the DEBTOR listed several claims relating to the boat accident as claims with “amount unknown.” ALLEN *236 and IMT (sometimes together referred to as “PLAINTIFFS”) filed these adversary-proceedings seeking a determination that their claims against the DEBTOR arising from the boat accident are nondischargeable under Section 523(a)(9). In each proceeding, the DEBTOR moved to dismiss the complaints for failing to state a claim upon which relief can be granted pursuant to Federal Rule of Civil Procedure 12(b)(6). 3 Hearings were held on the motions to dismiss, and the Court took the matters under advisement.

LEGAL STANDARD

In considering a motion to dismiss for failure to state a claim upon which relief can be granted under Fed.R.Civ.P. 12(b)(6), the court must assume as true all well-pleaded facts in the complaint and view them in a light most favorable to the plaintiff, drawing all reasonable inferences in favor of the plaintiff. Veazey v. Communications & Cable of Chicago, Inc., 194 F.3d 850, 853-54 (7th Cir.1999). The purpose of such a motion is not to decide the merits of the case, but to test the sufficiency of the complaint. Dismissal is proper only if the court is convinced, beyond a reasonable doubt, that the plaintiff can prove no set of facts in support of its claim that would entitle it to relief. Echevarria v. Chicago Title & Trust Co., 256 F.3d 623, 625 (7th Cir.2001).

ANALYSIS

Section 523(a)(9) of the Bankruptcy Code was amended by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) to provide that debts for death or personal injury caused by the debtor’s operation of a vessel and an aircraft, as well as a motor vehicle, are nondischargeable if the operation was unlawful because the debtor was intoxicated. That amendment, adding the categories of vessels and aircrafts, applies to all cases filed on or after October 17, 2005. Because the DEBTOR’S petition was filed just days before that effective date, the PLAINTIFFS’ claims are governed by the prior version of the statute, which provided:

(a) A discharge ... does not discharge an individual debtor from any debt-
(9) for death or personal injury caused by the debtor’s operation of a motor vehicle if such operation was unlawful because the debtor was intoxicated from using alcohol, a drug, or another substance....

11 U.S.C. § 523(a)(9). 4

The term motor vehicle as used in former Section 523(a)(9) is not defined in the Bankruptcy Code. There is a split of authority among the courts that have addressed the question of whether the term motor vehicle encompasses motorboats. One line of cases, relied upon by the DEBTOR, holds that the term motor vehi- *237 de does not include motorboats or other watercraft. See Matter of Greenway, 71 F.3d 1177, 1180 (5th Cir.1996), cert. denied, 517 U.S. 1244, 116 S.Ct. 2499, 135 L.Ed.2d 191 (1996); In re Fall, 192 B.R. 16, 21 (Bankr.D.N.H.1995); In re Dilk, 2004 WL 3130617 (S.D.Ind.2004). The other line of cases, relied upon by ALLEN and IMT, concludes that the term motor vehicle has no universally accepted meaning and, given Congress’s clear intent to protect the public from drunk drivers, holds that a motorboat is a motor vehicle for purpose of Section 523(a)(9). See In re Soda, 261 B.R. 342, 349 (Bankr.D.Conn. 2001); Willison v. Race, 192 B.R. 949, 954 (W.D.Mo.1995); Williams v. Radivoj, 111 B.R. 361, 362 (S.D.Fla.1989).

Under well-settled rules of statutory construction, courts must begin their analysis with the language of the statute itself. United States v. Ron Pair Enterprises, Inc., 489 U.S. 235, 241, 109 S.Ct. 1026, 1030, 103 L.Ed.2d 290 (1989). Courts are to assume, absent indication to the contrary, that “Congress intends the words in its enactments to carry their ordinary, contemporary, common meaning.” Pioneer Inv. Services Co. v. Brunswick Associates Ltd. Partnership,

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Bluebook (online)
353 B.R. 233, 2006 Bankr. LEXIS 2868, 2006 WL 2925654, Counsel Stack Legal Research, https://law.counselstack.com/opinion/illinois-marine-towing-inc-v-barnick-in-re-barnick-ilcb-2006.