Schmidt v. Schmehl (In Re Schmehl)

57 B.R. 546, 1986 Bankr. LEXIS 6840, 14 Bankr. Ct. Dec. (CRR) 1
CourtUnited States Bankruptcy Court, N.D. Ohio
DecidedJanuary 24, 1986
Docket19-60226
StatusPublished
Cited by7 cases

This text of 57 B.R. 546 (Schmidt v. Schmehl (In Re Schmehl)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schmidt v. Schmehl (In Re Schmehl), 57 B.R. 546, 1986 Bankr. LEXIS 6840, 14 Bankr. Ct. Dec. (CRR) 1 (Ohio 1986).

Opinion

MEMORANDUM OPINION AND ORDER

RICHARD L. SPEER, Bankruptcy Judge.

This cause comes before the Court upon the Complaint to Determine Dis-chargeability of Debt in the above entitled adversary action. The Court conducted a Pre-Trial conference in this case, at which the parties expressed their intent to contest an issue of law which stands as a threshold question in the resolution of this case. That issue involves the question of whether or not debts which arise as the result of the debtor’s operation of a motor vehicle while under the influence of alcohol are per se dischargeable in bankruptcy. The parties have agreed that the Court may render a decision on this issue prior to any further prosecution of the case. Pursuant to that agreement, the parties have filed their arguments and have responded to the arguments made by opposing counsel. The Court has reviewed those arguments as well as the entire record in this case. Based upon that review and for the following reasons the Court finds that debts which arise as the result of the Debtor’s having driven an automobile while under the influence of alcohol are not per se dischargeable.

FACTS

The facts in this case have not been fully developed, inasmuch as the Court has allowed the parties to address this threshold question. As set forth in the Complaint, the Plaintiff alleges that on or about January 3, 1983, the Debtor-defendant was involved in an automobile accident with the Plaintiffs. They further allege that the Debtor caused the accident, and that at the time of the accident the Debtor was under the influence of alcohol. The Complaint states that as a result of this accident they sustained injuries, and that they are entitled to compensation from the Debtor for those injuries. The Plaintiffs claim that this debt should be excepted from discharge based upon the provisions of 11 U.S.C. Section 523. The Debtors petition was filed on August 21, 1984.

LAW

The Plaintiffs do not set forth with specificity the provisions of 11 U.S.C. Section 523 under which they assert their nondischargeability claim. However, a review of the Complaint appears to reflect that they are proceeding under 11 U.S.C. Section 523(a)(6), the provisions of which state in pertinent part:

(а) A discharge under section 727, 1141, or 1328(b) of this title ... does not discharge an individual debtor from any debt—
(б) for willful and malicious injury by the debtor to another entity or to the property of another entity.

Under this provision, any debt which arises as the result of the debtor’s willful and malicious conduct is not dischargeable. In order to constitute a nondischargeable debt, the conduct must have been both willful and malicious. Thorp Credit & Thrift Co. v. Pommerer (In re Pommerer), 10 B.R. 935 (Bkcy.D.Minn.1981), Roberson v. Schwenn (Matter of Schwenn), 44 B.R. 746 (Bkcy.E.D.Wis.1984). Willful conduct is that conduct which is deliberate, intentional, and voluntarily undertaken by the debtor, and which is sufficient to cause the wrongful act. See, Tinker v. Colwell, 193 U.S. 473, 24 S.Ct. 505, 48 L.Ed. 754 (1904). This element of the cause of action addresses the question of whether the conduct transpired under circumstances over which the Debtor had meaningful control. As for the element of malice, malicious conduct is that conduct which is done without just cause, or for which their is no rational justification. Wiseman v. Weingarten (In re Weingarten), 49 B.R. 881 (Bkcy.N.D.Ohio 1985). It is not necessary that the debtor have acted with ill-will or *548 malevolent purpose towards the victim, McGraw v. Jordan (In re Jordan), 47 B.R. 712 (Bkcy.N.D.Ohio 1985), or that the debt- or intended to harm the victim. Materia v. Pereira (In re Pereira), 44 B.R. 248 (Bkcy.Mass.1984). It is sufficient that the debtor knew, at the time the act was committed, that the act was wrongful.

There are two views as to the question of whether or not debts arising from the operation of a vehicle while under the influence of alcohol are dischargeable in bankruptcy. One view contends that the negligent operation of a vehicle is not necessarily associated with the fact that the driver of the vehicle was intoxicated at the time of such operation. See, Gunther v. Kuepper (In re Kuepper), 36 B.R. 680 (Bkcy.E.D.Wis.1983), Clair v. Oakes (In re Oakes), 24 B.R. 766 (Bkcy.N.D.Ohio 1982), Castiglia v. Morgan (Matter of Morgan), 22 B.R. 38 (Bkcy.D.Neb.1982). These cases draw a distinction between the operation of the vehicle and the consumption of alcohol pri- or to that operation. The Courts which support this view indicate that the consumption of alcohol is not, of its own accord, a willful and malicious act. They also indicate that if the Debtor’s operation of the vehicle is merely negligent, then such negligence cannot be considered willful and malicious conduct for purposes of a dis-chargeability determination. In effect, these decisions disassociate the consumption of alcohol with the operation of the vehicle. See, Clair v. Oakes, supra.

The other view does not make the distinction between consumption and operation. Unlike the first theory, the second view holds that the operation of a vehicle while under the influence of alcohol demonstrates sufficient disregard for the rights of others so as to constitute a malicious act for purposes of 11 U.S.C. Section 523(a)(6). See, Moraes v. Adams (In re Adams), 761 F.2d 1422 (9th Cir.1985), Hartford Insurance Group v. Galvan (In re Galvan), 39 B.R. 663 (D.Col.1984), Caldarelli v. Callaway (In re Callaway), 41 B.R. 341 (Bkcy.E.D.Pa.1984), Long v. Greenwell (In re Greenwell), 21 B.R. 419 (S.D.Ohio 1982). In supporting this view, the Courts have stated that where a debtor follows a course of conduct which is so certain to bring about a particular result, it is presumed from the conduct that the debtor intended the result. Hartford Insurance Group v. Galvan, supra.

It is well established that all persons are presumed to know the law. See, Morris v. Bloomgren, 127 Ohio St. 147, 187 N.E. 2 (1933), see generally, 42 Ohio Jur.3d Evidence and Witnesses Section 143, 29 Am.Jur.2d Evidence Section 222. Any conduct which violates the provisions of a law must be considered to have been done with knowledge of the fact that the conduct is unlawful. Since the provisions of 11 U.S.C. Section 523

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Cite This Page — Counsel Stack

Bluebook (online)
57 B.R. 546, 1986 Bankr. LEXIS 6840, 14 Bankr. Ct. Dec. (CRR) 1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schmidt-v-schmehl-in-re-schmehl-ohnb-1986.