Staggs v. Forrester (In Re Staggs)

177 B.R. 92, 1995 U.S. Dist. LEXIS 720, 1995 WL 23994
CourtDistrict Court, N.D. Indiana
DecidedJanuary 19, 1995
Docket1:94-cv-00220
StatusPublished
Cited by12 cases

This text of 177 B.R. 92 (Staggs v. Forrester (In Re Staggs)) is published on Counsel Stack Legal Research, covering District Court, N.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Staggs v. Forrester (In Re Staggs), 177 B.R. 92, 1995 U.S. Dist. LEXIS 720, 1995 WL 23994 (N.D. Ind. 1995).

Opinion

ORDER

WILLIAM C. LEE, District Judge.

This matter is before the court on Appellant’s, Ervin Staggs (hereinafter: “Staggs”), appeal of United States Bankruptcy Judge Robert E. Grant’s Decision wherein Judge Grant ruled that Appellee, James Forrester (hereinafter: “Forrester”), was entitled to summary judgment. In re Staggs, 178 B.R. 767 (Bankr.N.D.Ind.1994). For the following reasons, the Bankruptcy Court’s Decision is AFFIRMED.

FACTUAL BACKGROUND

On July 3, 1986, Staggs was involved in a fight with Forrester at a bar in Marion, Indiana. As a result, Forrester sustained injuries. On July 5, 1988, in the Grant County, Indiana, Circuit Court, Forrester filed a civil suit against Staggs for battery. Staggs filed his Answer on April 3, 1989. Almost three (3) years later, Forrester filed a Motion for Summary Judgment.

Staggs failed to appear at any of the scheduled hearings on the Motion or otherwise contest the Motion. The Circuit Court issued its Summary Judgment Decree on September 1, 1992 which read in pertinent part:

The Court has considered the arguments of counsel as well as the affidavit of Plaintiff James Forrester and the Admissions contained in the Request for Admissions propounded by Plaintiff to Defendant Er-vin Staggs which were deemed admitted by Order of this Court of April 20, 1992. Based upon those matters the Court now finds there is no genuine issue of material fact and the Defendant Ervin Staggs committed battery upon Plaintiff and that as a result of that battery Plaintiff suffered injuries.

Forrester v. Staggs, No. 27C01-8811-CP-772 (Grant County, Indiana, Circuit Ct. Sept. 1, 1992).

The court then set the matter for a further hearing on damages. At the October 14, 1992, hearing on damages, the Court awarded Forrester compensatory damages in the amount of $150,000.00 and awarded punitive damages in the amount of $450,000.00. Forrester v. Staggs, No. 27C01-8811-CP-772 (Grant County, Indiana, Circuit Ct. Oct. 14, 1992). Staggs failed to attend the hearing on damages as well.

The entry of final judgment induced Staggs to act. Staggs filed a Motion to Correct Errors with the court. The Motion was denied. Staggs then filed an appeal with the Indiana Court of Appeals.

Staggs subsequently filed a voluntary Chapter 7 bankruptcy petition in the United States Bankruptcy Court for the Northern District of Indiana, Fort Wayne Division on March 19, 1993. Forrester timely filed a Complaint in the bankruptcy proceeding seeking a determination that the obligation Staggs owed Forrester as a result of the state court judgment was nondischargeable pursuant to 11 U.S.C. § 523(a)(6) as a debt *94 representing a willful and malicious injury. Forrester filed a Motion for Summary Judgment arguing that the state court judgment for battery precluded (issue preclusion or collateral estoppel) Staggs from litigating whether the debt owed was attributable to a willful and malicious injury.

The Bankruptcy Court determined that Staggs’ debt to Forrester arising from the state court judgment was nondischargeable as it was a debt attributable to a willful and malicious injury under 11 U.S.C. § 523(a)(6). The Bankruptcy Court concluded that For-rester carried his burden of proof and satisfied all of the elements of issue preclusion by a preponderance of the evidence and granted summary judgment in his favor.

ISSUES PRESENTED ON APPEAL

As framed by the Appellant, the issue presented on appeal is “whether the Bankruptcy Court’s decision/judgment of June 6, 1994 is contrary to law in granting summary judgment in favor of Plaintiff Forrester determining that Defendant Staggs is collaterally es-topped from challenging nondisehargeability of a state court decision entered as a result of an uncontested summary judgment.” (Appellant’s Brief, p. 1). Essentially, Staggs asserts that Forrester may not rely upon collateral estoppel to prevent Staggs from having his day in court, and thus, Forrester has failed to show by a preponderance of the evidence that the debt is nondischargeable. Grogan v. Garner, 498 U.S. 279, 284, 111 S.Ct. 654, 658, 112 L.Ed.2d 755 (1991) (plaintiff in bankruptcy proceeding must demonstrate by a preponderance of the evidence that plaintiff has satisfied all of the elements necessary to preclude a debt from being discharged).

Staggs readily concedes that he may not prevail upon the ultimate issue of whether the battery committed upon Forrester was done willfully and maliciously, as those terms are defined by federal bankruptcy law, but insists that the ultimate determination may not be decided under the doctrine of collateral estoppel. Staggs argues the bankruptcy court erred in granting the Motion for Summary Judgment as an evidentiary hearing was required to resolve whether Staggs acted willfully and maliciously.

STANDARD OF REVIEW

This court has jurisdiction to hear this appeal pursuant to 28 U.S.C. § 158(a). The Federal Rules of Bankruptcy Procedure provide the applicable standard of review. Rule 8013 states:

On an appeal the district court ... may affirm, modify, or reverse a bankruptcy court’s judgment, order, or decree or remand with instructions for further proceedings. Findings of fact shall not be set aside unless clearly erroneous, and due regard shall be given to the opportunity of the bankruptcy court to judge the credibility of the witnesses.

This high standard of review has been followed by district courts. See, e.g., In re Clarkson, 767 F.2d 417, 419 (8th Cir.1985); In re Tesmetges, 47 B.R. 385, 388 (E.D.N.Y.1984). District courts review factual findings of bankruptcy courts under the “clearly erroneous standard.” Matter of Newman, 903 F.2d 1150 (7th Cir.1990). The “clearly erroneous” language of the rule tracks the language found in Federal Rule of Civil Procedure 52(a), and cases construing the standard under 52(a) are equally applicable to bankruptcy cases. Matter of Louisiana Industrial Coatings, Inc., 53 B.R. 464, 467 (E.D.La.1985). The Supreme Court of the United States reaffirmed its longstanding definition of this standard in Anderson v. City of Bessemer City, N.C., 470 U.S. 564, 105 S.Ct. 1504, 84 L.Ed.2d 518 (1985), “[A] finding is ‘clearly erroneous’ when although there is evidence to support it, the reviewing court on the entire evidence is left with the definite and firm conviction that a mistake has been committed.” Anderson,

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Bluebook (online)
177 B.R. 92, 1995 U.S. Dist. LEXIS 720, 1995 WL 23994, Counsel Stack Legal Research, https://law.counselstack.com/opinion/staggs-v-forrester-in-re-staggs-innd-1995.