Kuhn v. Driver (In Re Driver)

305 B.R. 266, 2003 Bankr. LEXIS 1682, 42 Bankr. Ct. Dec. (CRR) 184, 2003 WL 23282806
CourtUnited States Bankruptcy Court, N.D. Texas
DecidedDecember 4, 2003
Docket19-40453
StatusPublished
Cited by3 cases

This text of 305 B.R. 266 (Kuhn v. Driver (In Re Driver)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kuhn v. Driver (In Re Driver), 305 B.R. 266, 2003 Bankr. LEXIS 1682, 42 Bankr. Ct. Dec. (CRR) 184, 2003 WL 23282806 (Tex. 2003).

Opinion

MEMORANDUM OPINION AND ORDER

STEVEN A. FELSENTHAL, Chief Judge.

Cheryl Kuhn moves the court for summary judgment declaring a judgment debt not dischargeable under 11 U.S.C. § 523(a)(6). Buddy Driver, the debtor, opposes the motion. The court conducted a hearing on the motion on November 10, 2003.

Kuhn, individually and as statutory heir of Dick Kuhn, deceased, obtained a judgment against Driver from the Dallas County, Texas, Court at Law, No. 3, for $11,034.70 plus $7,500 attorney’s fees, prejudgment interest at 6%, treble damages of $33,104.19 and post-judgment interest at 10%. In this adversary proceeding, Kuhn contends that the judgment may not be discharged pursuant to 11 U.S.C. §§ 523(a)(2)(A), (a)(4) and (a)(6). 1 In this motion for summary judgment, Kuhn contends that under the doctrine of collateral estoppel, the judgment debt is excepted from discharge under § 523(a)(6).

Summary judgment is proper if the pleadings, depositions, answers to inter *268 rogatories, and admissions on file, together with the affidavits, if any, and other matters presented to the court show that there is no genuine issue of material fact and that the moving party is entitled to a judgment as a matter of law. Celotex Corp. v. Catrett, 477 U.S. 317, 322-23, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986); Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 250, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986); Washington v. Armstrong World Indus., Inc., 839 F.2d 1121, 1122 (5th Cir.1988). On a summary judgment motion, the inference to be drawn from the underlying facts must be viewed in the light most favorable to the party opposing the motion. Anderson, 477 U.S. at 255, 106 S.Ct. 2505. A factual dispute bars summary judgment only when the disputed fact is determinative under governing law. Anderson, 477 U.S. at 250, 106 S.Ct. 2505.

The movant bears the initial burden of articulating the basis for its motion and identifying evidence which shows that there is no genuine issue of material fact. Celotex, 477 U.S. at 322, 106 S.Ct. 2548. The respondent may not rest on the mere allegations or denials in its pleadings but must set forth specific facts showing that there is a genuine issue for trial. Matsushita Elec. Indus. Co., Ltd. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986).

Section 523(a)(6) excepts from an individual debtor’s discharge a debt “for willful and malicious injury by the debtor to another entity or to the property of another entity[.]” 11 U.S.C. § 523(a)(6). A “willful” injury requires “a deliberate or intentional injury, not merely a deliberate or intentional act that leads to injury.” Kawaauhau v. Geiger, 523 U.S. 57, 61, 118 S.Ct. 974, 140 L.Ed.2d 90 (1998) (emphasis in original). To establish an intentional injury, the creditor must establish “either an objective substantial certainty of harm or a subjective motive to cause harm.” In re Miller, 156 F.3d 598, 606 (5th Cir.1998), cert. denied, 526 U.S. 1016, 119 S.Ct. 1249, 1250, 143 L.Ed.2d 347 (1999). In addition to being willful, the injury must be “malicious.” 11 U.S.C. § 523(a)(6). Malicious means “without just cause or excuse.” In re Garner, 56 F.3d 677, 681 (5th Cir.1995). The Supreme Court in Kawaauhau did not collapse the malicious definition into the willful injury definition nor otherwise read the words “and malicious” out of the statute. In re Grisham, 245 B.R. 65, 71 (Bankr.N.D.Tex.2000). Accordingly, “[a] debtor may act deliberately or intentionally to injure a person but have just cause or excuse to do so.” Id. Thus, a ‘debt arising from the debtor’s infliction of an intentional injury is dischargeable if the debtor had just cause or excuse for inflicting the intentional injury.

Kuhn contends that the judgment precludes relitigation of willful and malicious injury under § 523(a)(6). “[I]s-sue preclusion, or collateral estoppel, bars relitigation of issues that were actually litigated and decided in a previous action.” In re Gober, 100 F.3d 1195, 1200 n. 2 (5th Cir.1996). When considering the preclu-sive effect of a state court judgment, the federal court looks “to the state that rendered the judgment to determine whether the courts of that state would afford the judgment preclusive effect.” Id. Because the judgment against Driver was rendered in Texas state court, the Texas rules of issue preclusion apply. “[C]ollateral es-toppel ‘bars relitigation of any ultimate issue of fact actually litigated and essential to the judgment in a prior suit, regardless of whether the second suit is based upon the same cause of action.’ ” In re Gober, 100 F.3d 1195, 1201 (5th Cir.1996) (quoting Bonniwell v. Beech Aircraft Corp., 663 S.W.2d 816, 818 (Tex.1984)). Texas law also provides that, before applying collat *269 eral estoppel, the court must determine that “the facts asserted in the second proceeding were fully and fairly litigated in the first, that the facts were essential to the judgment, and that the parties were cast as adversaries in the first action.” Id. While the cause of action does not need to be the same for collateral estoppel to apply, the party asserting collateral estoppel must establish that “the issue is identical to an issue in the prior action.” Goldstein v. Comm’n for Lawyer Discipline, 109 S.W.3d 810, 812 (Tex.App.—Dallas 2003).

Kuhn contends that the state court record establishes all of the collateral estoppel elements; Driver disagrees.

Kuhn’s complaint in state court alleged that Driver and a co-defendant agreed to repair Kuhn’s vehicle, but failed to perform. Kuhn returned the vehicle to Driver for further repairs. But he again failed to repair the vehicle.

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Bluebook (online)
305 B.R. 266, 2003 Bankr. LEXIS 1682, 42 Bankr. Ct. Dec. (CRR) 184, 2003 WL 23282806, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kuhn-v-driver-in-re-driver-txnb-2003.