Owens v. Powell (In re Powell)

567 B.R. 429
CourtUnited States Bankruptcy Court, N.D. New York
DecidedFebruary 17, 2017
DocketCase No. 16-30073; Adv. Proc. No. 16-50014
StatusPublished
Cited by19 cases

This text of 567 B.R. 429 (Owens v. Powell (In re Powell)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, N.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Owens v. Powell (In re Powell), 567 B.R. 429 (N.Y. 2017).

Opinion

Memorandum-Decision and Order

Margaret Cangilos-Ruiz, United States Bankruptcy Judge

Irving Owens (“Plaintiff’) commenced this adversary proceeding seeking to except an unliquidated judgment debt (the “Debt”) owed to Plaintiff by Christian S. Powell (“Debtor” or “Defendant”) from discharge in Defendant’s chapter 7 bankruptcy case. Specifically, Plaintiff asserts that the Debt resulted from Defendant’s intentional assault and injury of Plaintiff and is, accordingly, nondischargeable pursuant to 11 U.S.C. § 523(a)(6) for willful and malicious injury.1

The court conducted a bench trial on November 18, 2016, at which both Plaintiff and Defendant testified.2 The parties stipulated to the admission of Plaintiffs sole exhibit, an Onondaga County Certificate of Conviction of Defendant, dated November 12, 2015; for third degree assault with intent to cause physical injury. After trial, the court directed the parties to submit post-trial briefs; which have since been filed.3 This memorandum-decision incorporates the court’s findings of fact and conclusions of law pursuant to Fed. R. Bankr. P. 7052. For the reasons discussed, the court finds the Debt nondischargeable.

Jurisdiction

The court has jurisdiction over this adversary proceeding pursuant to 28 U.S.C. §§ 157(a), 157(b)(1), 157(b)(2)(I), and 1334(b). .

Background Facts

Both parties were out celebrating New Year’s Eve 2013 in downtown Syracuse. In [433]*433the early hours of January 1, 2014, the parties both relate a physical altercation involving a dispute over a taxi cab, but offer widely divergent accounts of the events leading up to the incident. According to Plaintiff, he attempted to get into the front seat of a cab when Defendant— who had been sitting in the back seat of the cab — exited the cab, struck Plaintiff, knocked him to the ground and kicked him in the face, rendering Plaintiff unconscious. According to Defendant, he had entered the cab and given an address to the driver when Plaintiff struck him and pinned him inside the cab. Defendant testified that he forcefully exited the cab in a state of panic and struck Plaintiff in self-defense without animus or malice.

It is not disputed that Plaintiff sustained serious injuries including a broken eye socket and orbital bone and required stitches. Following the altercation Defendant was arrested, tried and convicted of assault in the third degree in Syracuse City Court, 5th Judicial District, under New York Penal Law § 120.00. (Pl.’s Ex. 1). Subsequent to Defendant’s criminal conviction, Plaintiff filed a civil lawsuit against Defendant in Onondaga Supreme Court on November 24, 2015. Defendant failed to answer, and Plaintiff was seeking a default judgment when Defendant filed for bankruptcy. (Pl.’s Comp. ¶ 22, 23, and 25).

On his bankruptcy schedules, Debtor listed Plaintiffs claim at an unknown value. Plaintiff filed this adversary proceeding seeking to except the Debt from discharge under § 523(a)(6) as caused by Debtor’s willful and malicious injury. Defendant’s answer acknowledges the criminal conviction, but denies that it has any preclusivq effect on this litigation.4 At trial, both Plaintiff and Defendant testified, and Plaintiff presented unrebutted testimony regarding the extent of his injuries.

Arguments

Plaintiff argues that Defendant’s criminal conviction precludes relitigation of the elements necessary to meet § 523(a)(6)’s discharge exception. Plaintiff asserts that the requirements of issue preclusion are met because the factual issues relevant to a § 523(a)(6) claim of willful and malicious injury were necessary to support the criminal judgment and there is no claim that Defendant did not have a full and fair opportunity to litigate the issue in the prior criminal proceeding. In the alternative, Plaintiff argues that based upon the evidence propounded — Defendant’s and Plaintiff’s oral testimony — the court may infer the requisite intent and malice to find the Debt nondisehargeable.

Defendant advances several affirmative defenses.5 Defendant claims that: (i) .his criminal conviction should not be entitled to issue preclusion with respect to the issues relevant to a § 523(a)(6) determination because the elements of Defendant’s conviction do not conform to the elements of § 523(a)(6), (ii) Defendant’s injury of Plaintiff was necessitated by self-defense and was without malice, and (iii) Plaintiffs complaint fails to state a cause of action.

More specifically, Defendant argues that the criminal conviction does not clearly identify under which subdivision of assault in the third degree he was convicted. In Defendant’s view, if the prior conviction only encompassed the “reckless” cause of physical injury under New York Penal [434]*434Law § 120.00-02, the conviction would lack preclusive effect as to intent. Defendant does not contest that Plaintiff was injured. Defendant asserts, however, that, in conjunction with his claim of self-defense, the record does not demonstrate and does not allow the court to infer that Defendant acted with the requisite intent to cause the willful and malicious injury to Plaintiff necessary for the Debt to be excepted from discharge.

Applicable Law

11 U.S.C. § 523(a)(6)

Section 523(a)(6) provides that a debtor’s discharge under § 727 excepts any debt “for willful and malicious injury by the debtor to another entity.”6 This exception to discharge requires a plaintiff to prove three elements: (i) “debtor acted willfully,” (ii) “debtor acted maliciously,” and (iii) “debtor’s willful and malicious actions caused injury to the plaintiff or the plaintiffs property.” Guggenheim Capital LLC v. Birnbaum (In re Birnbaum), 513 B.R. 788, 802-03 (Bankr. E.D.N.Y. 2014). A plaintiff must establish the elements of § 523(a)(6) by preponderance of the evidence. Grogan v. Garner, 498 U.S. 279, 111 S.Ct. 654, 112 L.Ed.2d 755 (1991). Willfulness and maliciousness are separate elements that must be independently proven. Ladouceur v. Boutin (In re Boutin), No. 15-30128, 2016 WL 4268257, at *2 (Bankr. N.D.N.Y. Aug. 11, 2016) (citing In re Krautheimer, 241 B.R. 330, 340 (Bankr. S.D.N.Y. 1999)).

a. The Willful Element

An act is willful, for the purposes of § 523(a)(6) when an actor had actual intent to cause injury or “was substantially certain that the injury would occur.” Margulies v. Hough (In re Margulies), 541 B.R. 156, 162 (Bankr. S.D.N.Y. 2015) (citing cases and Restatement (Second) of Torts § 8A (Am. Law Inst. 1965)). As explained by the United States Supreme Court in the seminal case of Kawaauhau v. Geiger,

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Bluebook (online)
567 B.R. 429, Counsel Stack Legal Research, https://law.counselstack.com/opinion/owens-v-powell-in-re-powell-nynb-2017.