Loos v. Koperski (In re Koperski)

540 B.R. 394
CourtUnited States Bankruptcy Court, D. Minnesota
DecidedNovember 5, 2015
DocketBKY 14-34936; ADV 15-3033
StatusPublished
Cited by2 cases

This text of 540 B.R. 394 (Loos v. Koperski (In re Koperski)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Loos v. Koperski (In re Koperski), 540 B.R. 394 (Minn. 2015).

Opinion

ORDER OF ABSTENTION AND DISMISSAL WITHOUT PREJUDICE (COUNTS I — VI)

GREGORY F. KISHEL, CHIEF UNITED STATES BANKRUPTCY JUDGE

This adversary proceeding was commenced in the Defendant’s bankruptcy case under Chapter 7. Earlier in 2014, the Defendant and the Plaintiff had been in litigation in the Minnesota state courts. The Defendant filed for bankruptcy before that matter went to trial. For her bankruptcy filing, the Defendant scheduled an unsecured debt in favor of the Plaintiff. She recited its amount as “Unknown” and its nature as “Legal Damages.”

Through this adversary proceeding, the Plaintiff seeks two forms of relief. Under federal bankruptcy law, he seeks a determination of nondischargeability — that is, an exception from discharge for the debt. that he alleges the Defendant owes him. The Plaintiff also requests that this court fix and liquidate the debt, on the same claims that were in suit in the Minnesota state courts.

The Plaintiff cites 11 U.S.C. § 523(a)(6) for his theory of nondischargeability. In his words, the Defendant owes him “a debt- ... as a result of [the] Defendant’s willful and malicious conduct and injury to [the] Plaintiff.” Under legislative history and judicial construction, this basis for nondis-[396]*396chargeability aligns with the notion of intentional tort.1 Kawaauhau v. Geiger, 523 U.S. 57, 64 and 61-62, 118 S.Ct. 974, 140 L.Ed.2d 90 (1998); In re Patch, 526 F.3d 1176, 1183 (8th Cir.2008); In re Long, 774 F.2d 875, 879 (8th Cir.1985) (citing S.Rep. No. 989, 95th Cong., 2d Sess. 79 (1978); H.R.Rep. No. 595, 95th Cong., 1st Sess. 365 (1977)); In re Duy, 484 B.R. 742, 750 (Bankr.D.Minn.2012). Here, the specific torts are identified as defamation; libel; invasion of privacy; and negligent infliction of emotional distress. The Plaintiff also seeks prospective injunctive relief against the Defendant, to restrain certain described conduct.

Two questions jumped out from this matter, as it stands under the pleadings. The first is whether this court should abstain from hearing and determining liability, damages, and right to injunctive relief under non-bankruptcy law, in favor of returning those matters to the Minnesota state court. If abstention is warranted, the next question is the order of suit: is it more appropriate to abstain and remand now, with a later return to the forum of bankruptcy for a determination of nondis-chargeability if the Plaintiff prevails in the state court? Or should dischargeability be determined first?

The court raised these matters ma sponte at a scheduling conference2, and directed briefing. Briefs have been submitted; and so these difficult issues are now addressed. The Plaintiff appears by Dominique J. Navarro. The Defendant appears by David L. Friedman.

MATTERS IN SUIT, HERE AND THERE

These parties’ disputes are truly a 21st-century tale. In his complaint for this adversary proceeding, the Plaintiff makes the following allegations, among many others: 3

1. The Plaintiff and the Defendant were married for about five years. They got divorced on November 23, 2005. They have one child together. They both reside in Rochester, Minnesota.
2. The Defendant wrote a novel titled The Narcissist’s Wife. She published it under a pseudonym in the summer of 2013. The Defendant began to distribute copies of the novel by various means, including a weekly book club and through Amazon.com and other on-line vectors.
3. Recipients of the book have included multiple persons in the Rochester community.
4. The novel “contains several false, misleading, and defamatory statements and assertions of fact regarding [the] Plaintiff, of which facts [the Defendant] knew were false .... ” The subject matter includes events, acts, and interpersonal conduct dur[397]*397ing the parties’ marital relationship; the Plaintiffs mental health; the Plaintiffs relationship with the parties’ child; and the Plaintiffs lawfulness and moral character.4
5. During the fall of 2013, the Defendant posted an untrue statement on her Facebook wall, to the effect that she “[w]as just asked to move to Denver , with my ex-husband .... ”
6. The “[r]ecipients and readers of the [novel] and [the Facebook] Posting are aware that they each contain assertions about and concerning [the] Plaintiff.”
7. The identified statements are false. The Defendant “intentionally, willfully, and maliciously wrote, published, and distributed” them “with the intent to ruin [the] Plaintiffs reputation in the community,” and “in order to cause injury to [the] Plaintiff .... ”
8. The Plaintiff has incurred “great injury to [his] reputation and character,” has undergone “severe emotional and psychological distress,” and has incurred “damage to his business, business reputation, and business prospects.”

In January, 2014, the Plaintiff commenced suit against the Defendant in the Minnesota State District Court for the Third Judicial District, Olmsted County. The pleading of fact for that earlier action was almost identical to that just summarized for this adversary proceeding.5 Other, non-summarized fact allegations are also common to the two complaints.

In the Olmsted County District Court lawsuit, the parties skirmished through early motions from both sides. The Defendant moved for summary judgment (granted as to the Plaintiffs claim for intentional infliction of emotional distress, denied as to all the rest). The Plaintiff moved for a temporary injunction against any further act to disseminate The Narcissist’s Wife in any way (granted, with consideration of a permanent injunction reserved to trial on the merits).6 The Plaintiff moved for leave to assert a claim for punitive damages.7 The Defendant did not oppose the motion and the court granted it. After the Plaintiffs counsel served a second round of written discovery on the Defendant and received leave to take her deposition a second time, the Defendant filed her bankruptcy petition on December 16, 2014.

Some six weeks after that, the Plaintiff moved for relief from the automatic stay of 11 U.S.C. § 362(a)(1).

The request was quite anomalous in its content. The Plaintiff sought leave to proceed to a jury trial in his state court lawsuit against the Defendant. He coupled that with a request to “defer the [Defendant’s] discharge pending resolution of the state court matter.”8

[398]*398In her response, the Defendant picked up on the anomaly. She argued that dis-chargeability was “a preliminary bankruptcy issue that should be resolved” before any consideration of allowing the earlier suit to proceed in the state court.

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Cite This Page — Counsel Stack

Bluebook (online)
540 B.R. 394, Counsel Stack Legal Research, https://law.counselstack.com/opinion/loos-v-koperski-in-re-koperski-mnb-2015.