Roberts v. Spencer (In Re Spencer)

168 B.R. 142, 8 Tex.Bankr.Ct.Rep. 204, 1994 Bankr. LEXIS 775, 1994 WL 237608
CourtUnited States Bankruptcy Court, N.D. Texas
DecidedMay 27, 1994
Docket19-40972
StatusPublished
Cited by11 cases

This text of 168 B.R. 142 (Roberts v. Spencer (In Re Spencer)) 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
Roberts v. Spencer (In Re Spencer), 168 B.R. 142, 8 Tex.Bankr.Ct.Rep. 204, 1994 Bankr. LEXIS 775, 1994 WL 237608 (Tex. 1994).

Opinion

*144 MEMORANDUM OF OPINION ON COMPLAINT TO DETERMINE DIS-CHARGEABILITY OF DEBT

JOHN C. AKARD, Bankruptcy Judge.

Lyndel R. Roberts seeks to have her claim against Wendy Michelle Spencer (Debtor) declared nondischargeable pursuant to § 523(a)(9) of the Bankruptcy Code 2 asserting that the claim resulted from Debtor operating her motor vehicle while under the influence of alcohol or drugs. The court finds that the Debtor’s liability was discharged.

FACTS 3

At approximately 9:00 p.m. on August 25, 1992, Roberts was stopped for a traffic light on a public street in Lubbock, Texas. A vehicle driven by the Debtor struck her vehicle from the rear. Roberts’ insurance carrier, Commercial Union Insurance Company, paid her $19,000.00 for bodily injury, $7,876.45 (net after salvage) for the total loss of her vehicle, and $175.91 for rent on a temporary vehicle. By subrogation, Commercial Union now seeks to recover the total sum of $27,052.36 from the Debtor.

Roberts filed suit against the Debtor in state court in Lubbock, Texas. Before the suit was tried, however, the Debtor filed for relief under Chapter 7 of the Bankruptcy Code. Roberts then filed this Adversary Proceeding requesting that the claim be declared nondischargeable pursuant to § 523(a)(9). Roberts further requested that the court render judgment in her favor for $27,052.36 or, in the alternative, that Roberts be allowed to proceed to judgment in the action pending in the state court. The Debt- or denies that she was operating her vehicle under the influence of alcohol or drugs. The Debtor received her discharge on April 25, 1994, subject to Roberts’ pending complaint.

JURISDICTION

The court must first determine if it has jurisdiction to hear this matter. In the PreTrial Order, the parties stipulated that this court has jurisdiction pursuant to 28 U.S.C. §§ 157 and 1334. They note that this is a complaint to determine the dischargeability of a debt under § 523 and that this is a core proceeding pursuant to 28 U.S.C. § 157(b)(2)(I).

A discharge under § 727 of the Bankruptcy Code does not discharge a debtor from a debt “for death or personal injury caused by the debtor’s operation of a motor vehicle if such operation was unlawful because the debtor was intoxicated from using alcohol, a drug, or other substance.” § 523(a)(9).

Jurisdiction of bankruptcy cases and proceedings is vested in the United States District Court. 28 U.S.C. § 1334. The district court may provide that any or all cases under the Bankruptcy Code shall be referred to the bankruptcy judges for the district. 28 U.S.C. § 157(a). All bankruptcy cases in the Northern District of Texas were referred to the bankruptcy judges by Miscellaneous Rule No. 33 of the Northern District of Texas contained in Order of Reference of Bankruptcy Cases and Proceedings Nunc Pro Tunc dated August 3, 1984.

Bankruptcy judges may hear and determine core proceedings. 28 U.S.C. § 157(b)(1). A non-exclusive list of core proceedings is contained in 28 U.S.C. § 157(b)(2), which includes the following:

(B) allowance or disallowance of claims against the estate or exemptions from property of the estate, and estimation of claims or interests for the purposes of confirming a plan under chapter 11, 12, or 13 of title 11 but not the liquidation or estimation of contingent or unliqui-dated personal injury tort or wrongful death claims against the estate for purposes of distribution in a case under title 11;
*145 [[Image here]]
(I) determinations as to the dischargeability of particular debts;
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(0) other proceedings affecting the liquidation of the assets of the estate or the adjustment of the debtor-creditor or the equity security holder relationship, except personal injury tort or urrongjul death claims.

(Emphasis added.)

It is clear from (I) that bankruptcy courts are to hear and determine the dis-chargeability of particular debts. It is equally clear from (B) and (0) that bankruptcy courts are not to determine personal injury tort or 'wrongful death claims. In this case the court is called upon to determine the dischargeability of a personal injury tort claim. In view of (B) and (0), the court questions whether it has jurisdiction to hear this matter. The parties agreed that this court has jurisdiction, but jurisdiction cannot be conferred by agreement. In re City Wide Press, Inc., 107 B.R. 68 (Bankr.E.D.Pa.1989).

In most reported cases dealing with § 523(a)(9), the plaintiff had already secured a judgment and sought to have the judgment determined nondisehargeable. In this case, liability is as yet undetermined in the state court.

A reasonable solution to this dilemma is suggested by Stackhouse v. Hudson (In re Hudson), 859 F.2d 1418 (9th Cir.1988). In Hudson, the bankruptcy court determined “that any judgment debt that might be entered in a pending suit for damages arising from drunk driving would be dischargeable.” Id. at 1419. The Ninth Circuit affirmed, holding that a prepetition judgment was not required for the bankruptcy court to make that determination. 4 Id. This approach preserves to the bankruptcy court the determination of dischargeability under the Bankruptcy Code, which is within the particular province and expertise of that court. It also preserves to the other forum the determination of personal injury or tort damages, which are within the expertise of that forum. The plaintiff is free to proceed in the other forum against the debtor to the extent of any insurance coverage and to proceed against any other potentially liable parties. For these reasons, this court limits its determination to the dischargeability of the debt and makes no attempt to assess damages or grant a judgment on the liability issues.

DISCHARGEABILITY

The claim which Roberts seeks to have declared nondisehargeable is composed of personal injuries, damage to her motor vehicle and vehicle rental expenses incurred as a result of the accident.

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Cite This Page — Counsel Stack

Bluebook (online)
168 B.R. 142, 8 Tex.Bankr.Ct.Rep. 204, 1994 Bankr. LEXIS 775, 1994 WL 237608, Counsel Stack Legal Research, https://law.counselstack.com/opinion/roberts-v-spencer-in-re-spencer-txnb-1994.