Stephen Michael Cassidy v. Thomas Francis Minihan

794 F.2d 340, 1986 U.S. App. LEXIS 26253, 14 Bankr. Ct. Dec. (CRR) 1146, 55 U.S.L.W. 2026
CourtCourt of Appeals for the Eighth Circuit
DecidedJune 20, 1986
Docket85-1856
StatusPublished
Cited by45 cases

This text of 794 F.2d 340 (Stephen Michael Cassidy v. Thomas Francis Minihan) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stephen Michael Cassidy v. Thomas Francis Minihan, 794 F.2d 340, 1986 U.S. App. LEXIS 26253, 14 Bankr. Ct. Dec. (CRR) 1146, 55 U.S.L.W. 2026 (8th Cir. 1986).

Opinion

JOHN R. GIBSON, Circuit Judge.

The 1978 Bankruptcy Code, 11 U.S.C. § 523(a)(6)(1982), bars the discharge of debts arising from a “willful and malicious injury.” The issue before us is whether a judgment for personal injury damages resulting from the debtor’s operation of an automobile while under the influence of alcohol is a debt arising from a “willful and malicious injury” and, therefore, nondis-chargeable under the Code. We believe that the Congress enacting the Code intended to make nondischargeable only debts arising from intentionally inflicted injuries, and there is no evidence supporting the conclusion that the injuries inflicted in this case were intentional. We therefore affirm the judgment of the district court. 1

Cassidy, the creditor in this action, obtained a default judgment against Minihan in state court for damages he suffered in an automobile collision with Minihan. Min-ihan sought discharge of the debt in bankruptcy and Cassidy challenged its dis-chargeability in an adversary proceeding in United States Bankruptcy Court in the Western District of Missouri. The bankruptcy judge conducted a de novo hearing on the issue of whether Minihan had inflicted a “willful and malicious injury” and found the following facts: On October 25, 1979 Minihan visited with friends between the hours of 7:00 p.m. and midnight. During this period he consumed at least five twelve-ounce cans of beer. He headed home about midnight, travelling north on a highway in Missouri; Cassidy was travel-ling south on the same road. Minihan’s car crossed over to the southbound lane and struck Cassidy’s head-on. In re Minihan, *342 No. 83-1153-C, slip op. at 2 (Bankr.W.D. Mo., Aug. 30, 1984). Cassidy suffered substantial personal injuries as a result of the collision.

The police officer who arrived first at the accident scene stated that Minihan’s car and person carried a strong alcohol odor, but that he did not administer a breathalizer test at the scene. The bankruptcy court found that Minihan was legally drunk at the time of the accident. 2 There is a veer in the road at the accident site due to road construction, but the bankruptcy court determined that this was not a major factor in the accident. Id. at 3.

Cassidy commenced a civil suit against Minihan in the Circuit Court of Jackson County, Missouri seeking actual and punitive damages for the injuries he suffered in the collision. For actual damages, he alleged that the collision was caused by Mini-han’s negligence; for punitive damages, he alleged that Minihan’s actions were either willful and malicious, or in conscious disregard of the rights of others. Minihan did not appear for trial and a default judgment was entered against him. The circuit court judge awarded Cassidy actual and punitive damages totaling $1,003,500. However, the judge did not specify in his order the theory on which punitive damage was assessed.

The bankruptcy judge, based on his evaluation of the legislative history of the Code and decisions of other courts, 3 determined that “willful” means deliberate or intentional conduct, and that “malicious” incorporates “acting with knowing disregard of the rights of another.” In re Minihan, slip op. at 7, 8. The bankruptcy judge determined that Minihan acted intentionally by deliberately ingesting alcohol and that he then drove his car on public roads in knowing disregard of the rights of others. Thus, he held, the debt was for a willful and malicious injury and was not dis-chargeable under section 523(a)(6) of the Code.

The district court reviewed the order of the bankruptcy judge de novo, 4 but also noted that its disposition would be the same even had it followed a clearly erroneous standard. The district court declined to review the bankruptcy judge’s finding that Minihan was legally drunk at the time of the accident, noting that its disposition of the statutory issue obviated the need to reach that question. The court then held that “willful injury”, under section 523(a)(6) of the Code, requires deliberate or intentional injury. The court found no suggestion that Minihan intentionally drove his car across the center line of the highway, or that he intended to engage in a collision with another vehicle. Concluding that Min-ihan’s conduct, at most, was in reckless disregard of the risks, the court held that the injuries inflicted were not willful or malicious and, thus, the debt was dis-chargeable in bankruptcy.

Our review of this issue begins, as it must, with the language of the Code. Section 523(a)(6) of the Code states:

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

The Code does not define “willful and malicious.” Before passage of the Bankruptcy Reform Act of 1978, most courts followed the approach established in Tinker v. Colwell, 193 U.S. 473, 24 S.Ct. 505, 48 L.Ed. 754 (1903), a criminal conversation case in which the Supreme Court held that under the 1898 Bankruptcy Act: 5

* * * [A] willful disregard of what one knows to be his duty, an act which is against good morals, an act likely to cause injury, and wrongful in and of itself, and which necessarily causes injury and is done intentionally, may be said to be done willfully and maliciously, so as to come within the exception.

Id. at 487, 24 S.Ct. at 509.

The Tinker interpretation of “willful and malicious injury” prevailed until passage of the Bankruptcy Reform Act of 1978. Congress retained unaltered the “willful and malicious injury” language of the 1898 Act in section 523(a)(6) of the 1978 Code. However, the House Judiciary Committee’s report accompanying the bill stated: “ ‘willful’ means deliberate or intentional. To the extent that Tinker v. Colwell, * * * held that a looser standard is intended, and to the extent that other cases have relied on Tinker to apply a ‘reckless disregard’ standard, they are overruled.” H.R.Rep. No. 595, 95th Cong. 2d Sess. 365, reprinted in 1978 U.S.Code Cong. & Ad.News, 5787, 5963, 6320-21.

In cases under section 523(a)(6), the prevailing view holds that debts arising from drunk-driving liability are dischargeable absent a showing that the debtor acted with intent to inflict injury. For example, in In Re Compos, 768 F.2d 1155, 1158 (10th Cir. 1985), the Tenth Circuit held that section 523(a)(6) exempts from discharge intentional injuries, not liability resulting from intentional acts which lead to injury. Under this standard the court concluded, drunk-driving liability is not per se nondischargeable.

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Bluebook (online)
794 F.2d 340, 1986 U.S. App. LEXIS 26253, 14 Bankr. Ct. Dec. (CRR) 1146, 55 U.S.L.W. 2026, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stephen-michael-cassidy-v-thomas-francis-minihan-ca8-1986.