Olivares v. Dason (In re Dason)

588 B.R. 537
CourtUnited States Bankruptcy Court, C.D. California
DecidedJune 18, 2018
DocketCase No.: 6:16-bk-11635-MH; Adv. No.: 6:16-ap-01211-MH
StatusPublished
Cited by1 cases

This text of 588 B.R. 537 (Olivares v. Dason (In re Dason)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Olivares v. Dason (In re Dason), 588 B.R. 537 (Cal. 2018).

Opinion

Mark Houle, United States Bankruptcy Judge

I. PROCEDURAL BACKGROUND

On February 26, 2016, Sam & Greeta Dason (Sam, individually, "Dason") (collectively, "Debtors") filed a Chapter 7 voluntary petition. On August 22, 2016, Juddy Olivares & Eric Panitz (individually, "Olivares" and "Panitz") (collectively, "Plaintiffs") filed a complaint against Dason to determine dischargeability of debt ( 11 U.S.C. § 523(a)(6) ) and for attorney's fees. On September 20, 2016, the complaint was amended. On January 11, 2017, the Court dismissed Panitz from the complaint. On March 7, 2017, Olivares filed her second amended complaint.

On August 9, 2017, Dason filed an answer and a counter-claim1 against Olivares. On October 2, 2017, Olivares filed her answer to the counter-claim. On January 19, 2018, Olivares filed the instant motion for summary judgment. On February 13, 2018, Dason filed his opposition to the motion for summary judgment. On February 21, 2018, Olivares filed her reply.

The Court notes that Dason has conceded that his counter-claim is moot in light of this Court's order annulling the automatic stay. As a result of this concession, the Court will sua sponte dismiss the counter-claim.

The Court held a hearing on the motion for summary judgment on March 7, 2018. At the hearing, the Court informed the parties that it would take the matter under further consideration and issue a decision in the coming weeks. Specifically, Olivares argues that "willfulness" is inherent in the hostile workplace sexual harassment claim she brought in state court, and Dason argues that willfulness is not necessarily inherent in a quid pro quo sexual harassment claim when that claim is, at least partially, premised on constructive termination.

II. FACTUAL BACKGROUND

Olivares began working as a dental assistant in 2010 for Colton Dental Group, the business name of Dason's dental corporation, Sam Daniel Dason, DDS ("Dason *541DDS"). Olivares states that she "was subjected to offensive sexual comments and inquiries, and other unwelcome, sexually-based, offensive conduct by Defendant." Furthermore, Olivares states that she "was subjected to repeated unwelcome sexual touching at the hands of Defendant," which is extensively detailed in the complaint and the motion for summary judgment. On January 17, 2013, Olivares left early and did not return to work. On February 26, 2016, the San Bernardino County Superior Court entered a judgment against Dason and Dason DDS in the amount of $1,724,996.34 (the "Judgment").2 The judgment contained the following components:

1) $300,000 for past emotional distress-hostile work environment
2) $200,000 for past emotional distress-quid pro quo sexual harassment
3) $500,000 for future emotional distress
4) $100,000 for punitive damages3
5) $1,875 for future psychiatric care
6) $8,125 for future psychological care
7) $6,735.22 for past lost income
8) $608,261.12 for attorney's fees and costs

Olivares contends that the judgment is non-dischargeable pursuant to 11 U.S.C. § 523(a)(6). Olivares bases her motion for summary judgment both on issue preclusion and the record in this case. Dason argues that the record in this case cannot support summary judgment and that the state court judgment does not contain adequate findings to support issue preclusion.

III. DISCUSSION

Olivares requests that the Court apply issue preclusion and find that the Judgment is non-dischargeable under 11 U.S.C. § 523(a)(6). The Bankruptcy Code excepts from discharge any 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). The creditor bears the burden of proving each element of § 523(a)(6) by a preponderance of the evidence. See, e.g. , Grogan v. Garner , 498 U.S. 279, 287, 111 S.Ct. 654, 112 L.Ed.2d 755 (1991).

To prevail on a claim under § 523(a)(6), a creditor must demonstrate three elements: (1) willful conduct; (2) malice; and (3) causation. See In re Butcher , 200 B.R. 675, 680 (Bankr. C.D. Cal. 1996) (quoting In re Apte , 180 B.R. 223, 230 (9th Cir. BAP 1995) ). A willful injury is 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). "A malicious injury involves (1) a wrongful act, (2) done intentionally, (3) which necessarily causes injury, and (4) is done without just cause or excuse." In re Barboza , 545 F.3d 702, 706 (9th Cir. 2008) (quoting In re Jercich , 238 F.3d 1202, 1209 (9th Cir. 2001) ).

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588 B.R. 537, Counsel Stack Legal Research, https://law.counselstack.com/opinion/olivares-v-dason-in-re-dason-cacb-2018.