Murray v. Day (In Re Day)

4 B.R. 750
CourtDistrict Court, S.D. Ohio
DecidedMay 28, 1980
DocketCiv. No. C-1-79-554, Bankruptcy No. B-1-78-1004
StatusPublished
Cited by28 cases

This text of 4 B.R. 750 (Murray v. Day (In Re Day)) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Murray v. Day (In Re Day), 4 B.R. 750 (S.D. Ohio 1980).

Opinion

OPINION

DAVID S. PORTER, Senior District Judge:

This matter is on appeal from an order of the bankruptcy court finding that a debt owed by defendant-appellee Charles F. Day, Jr. (“Day”) to plaintiff-appellants Carl Murray and Reliable Insurance Company (collectively referred to as “Murray”) is dischargeable under Section 17 of the Bankruptcy Act, 11 U.S.C. § 35. 1

*752 I. Facts

The debt arose out of a default judgment in the amount of $12,488.08 against Day. that was obtained by Murray from the Court of Common Pleas for Clermont County, Ohio: Carl Murray v. Charles Day, No. 76-CV 0578 (September 28, 1976) (a copy is attached to doc. 4). In its default judgment entry the common pleas court found that Day had stolen and converted to his own use a bulldozer owned by Murray and that his conduct in doing so was “wanton, willful, malicious, and intentional.” Id. The particulars of the bulldozer abduction are not in dispute and are briefly summarized in the bankruptcy court’s order (doc. 10, p. 2):

On May 26, 1975 [Day] was doing some construction work at the residence of his mother in Clermont County at # 12 Fleetwood Avenue. Accidently, the “bulldozer front loader” he was using became embedded in the creekbed at the rear of the premises. The weather was ominous and Day panicky. He was in need of something to salvage the loader. He tried to get help through a friend at a construction site. No luck. He spotted the bulldozer owned by Murray, tried to call the number appearing on the machine, and no luck. In desperation he converted the bulldozer owned by [Murray] by driving it down to where his was incapacitated. .
The Murray bulldozer used to salvage the front loader, also became embedded in the creek. A wrecking company finally pulled it out.

Some time after Murray obtained the default judgment, Day filed a petition with the bankruptcy court for discharge of his debts. In September, 1978, while Day’s bankruptcy petition was pending, Murray filed a complaint (doc. 1) with the bankruptcy court asking for a declaration that the debt created by the default judgment is “nondischargeable” under Section 17a(2) of the Bankruptcy Act, 11 U.S.C. § 35(a)(2). That section states in pertinent part:

(a) a discharge in bankruptcy shall release a bankrupt from all of his provable debts . . . except ... (2) . liabilities . . . for willful and malicious conversion of the property of another. .

Day’s answer (doc. 4) denied that the debt was nondischargeable. Murray moved for summary judgment (doe. 6), contending the default judgment found Day had willfully and maliciously converted Murray’s bulldozer and the doctrine of collateral estoppel prevented the bankruptcy court from independently determining the willfulness and maliciousness issues. The summary judgment motion was unopposed, yet the bankruptcy court denied it (doc. 7). The matter proceeded to trial (transcript is doc. 8). The bankruptcy court found that Day willfully converted Murray’s bulldozer, but did not do so maliciously (doc. 10, p. 3). The debt was declared dischargeable (Id.). This appeal followed pursuant to Bankruptcy Rule 801 and S.D.Ohio R. B-6.

II. Standard of Review

In an appeal such as this the bankruptcy court’s findings of fact must be accepted by the district court unless they are clearly erroneous. Bankruptcy Rule 810. The district court is, however, free to reach its own conclusions of law, and to draw inferences or deductions different from those of the bankruptcy court on documentary, undisputed, and stipulated evidence. Stafos v. Jarvin, 477 F.2d 369, 372 (10th Cir. 1973), cert. denied, 414 U.S. 944, 94 S.Ct. 230, 38 L.Ed.2d 168 (1973); In re Clemens, 472 F.2d 939, 943 n. 5 (6th Cir. 1972); 13 Collier on Bankruptcy § 810.05, p. 8-79 (14th Ed. 1978).

III. Issues on Appeal

On appeal Murray alleges the bankruptcy court committed three errors: (a) denying Murray’s unopposed summary judgment motion, (b) concluding Day’s conversion of Murray’s bulldozer was not malicious, and (c) adopting language in Day’s answer as a finding of fact.

*753 Each of these alleged errors will be discussed separately.

A. Denial of Summary Judgment

Murray forwards two arguments for finding the bankruptcy court’s denial of his summary judgment motion in error. The first is that the motion was unopposed and therefore should have been granted as a matter of course. The second is that the default judgment determined the issues of willfulness and maliciousness in Murray’s favor and the doctrine of collateral estoppel prevents the relitigation of those issues in bankruptcy court.

This Court cannot agree with either of these arguments.

Murray’s summary judgment motion (doc. 6), made pursuant to Bankruptcy Rule 756, was supported by documents whose genuineness was established by Bankruptcy Rule 736 (doc. 5). These documents included the default judgment entry. Day supplied no responsive memoranda or eviden-tiary material.

Bankruptcy Rule 756 adopts Fed.R.Civ.P. 56, which states in pertinent part:

(e) . . . When a motion for summary judgment is made and supported as provided in this rule, one adverse party may not rest upon the mere allegations or denials of his pleading, but his response, by affidavits or as otherwise provided in this rule, must set forth specific facts showing that there is a genuine issue of fact for trial. If he does not respond, summary judgment, if appropriate, shall be entered against him. (Emphasis added.)

The words “if appropriate” in Rule 56(e) indicate that a court cannot automatically grant a movant’s summary judgment motion when the opposing party fails to comply with the requirement of the rule. It is incumbent upon the Court to review the materials submitted in support of the motion to determine if they establish the absence of a genuine issue of fact, even if no opposing evidentiary matter is presented. “Advisory Committee Note to the 1963 Amendments to Rule 56,” 31 F.R.D. 647, 648 (1963). If that review indicates a triable issue of material fact, then summary judgment should be denied. Anderson v. Schulman, 337 F.Supp. 177 (N.D.Ill.1971); see Wright & Miller, Federal Practice and Procedure: Civil § 2739 (1973).

The bankruptcy court’s denial of Murray’s summary judgment motion was not erroneous.

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Bluebook (online)
4 B.R. 750, Counsel Stack Legal Research, https://law.counselstack.com/opinion/murray-v-day-in-re-day-ohsd-1980.