Vyshedsky v. Soliman (In re Soliman)

515 B.R. 179
CourtUnited States Bankruptcy Court, S.D. New York
DecidedSeptember 4, 2014
DocketCase No. 12-14444 (MG); Adv. Pro. No. 13-01106 (MG)
StatusPublished
Cited by17 cases

This text of 515 B.R. 179 (Vyshedsky v. Soliman (In re Soliman)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Vyshedsky v. Soliman (In re Soliman), 515 B.R. 179 (N.Y. 2014).

Opinion

MEMORANDUM OPINION AND ORDER DENYING WITHOUT PREJUDICE PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT

MARTIN GLENN, UNITED STATES BANKRUPTCY JUDGE

This adversary proceeding (the “Adversary Proceeding”) arises from a fight during which Sultan R. Solimán (“Solimán” or the “Debtor”), clearly the aggressor, bit Lev Vyshedsky (“Vyshedsky” or the “Plaintiff’) on the nose (the “Assault”). Solimán pled guilty in New York Criminal Court to two counts of assault in the third degree, a misdemeanor, and was sentenced to probation and fifteen days of community service: one count related to an assault on Andrzej Voy Sobon, an individual who had previously obtained an order of protection against Solimán; and the second count related to the assault on Vyshedsky, who unfortunately happened to be present in the same elevator when Solimán assaulted Sobon. Vyshedsky and Sobon sued Soli-mán for damages, initially in New York State Supreme Court and then transferred to the New York City Civil Court (the “Civil Court”). Vyshedsky obtained a default judgment against Solimán on a single cause of action for assault and battery, and now through this Adversary Proceeding, Vyshedsky seeks to obtain a declaration denying Solimán a discharge of the liability created by the state court judgment.

Following the lengthy Civil Court litigation, during which Solimán appeared by counsel, Solimán and his lawyer failed to appear for trial. The Civil Court entered a default and held an inquest (the “Inquest”) to determine damages. Solimán did not appear. After hearing testimony from Vyshedsky, the court entered a default judgment (the “Judgment”) against [182]*182Solimán in the amount of $110,695,1 consisting of $85,000 of compensatory damages and $25,000 of punitive damages (plus costs). Solimán then filed a chapter 7 bankruptcy petition. Vyshedsky countered with this Adversary Proceeding seeking to declare the debt non-discharge-able under section 528(a)(6) “for willful and malicious injury by the debtor to another [person]....” 11 U.S.C. § 523(a)(6).

This Court lifted the automatic stay to permit Solimán to file a motion in state court to vacate the Judgment; the motion was denied in a Decision and Order, dated December 13, 2013. The Civil Court concluded:

[T]he defendant cannot establish any potentially meritorious defense to the action. On March 7, 2001, in the Criminal Court of the City of New York, he was convicted upon his plea of guilty, of assault in the third degree, a violation of Penal Law § 120.00. In his plea allocution, the transcript of which was submitted by the plaintiff, the defendant admitted that he assaulted the plaintiff on July 27, 2000, by biting his nose. The plaintiff has demonstrated that the guilty plea should be given collateral estoppel effect in this subsequent civil proceeding.

(Moss Decl., ECF Doc. # 36, Ex. N.) Soli-mán sought to further stay the Adversary Proceeding to appeal this decision (see ECF Doc. #22); the Court denied his motion and entered a scheduling order for the parties’ summary judgment motions (see ECF Doc. # 30). ■

The parties have now filed cross motions for summary judgment.2 Vyshedsky seeks summary judgment denying Solimán a discharge based on collateral estoppel. Solimán seeks dismissal of the Adversary Proceeding. The parties contest whether collateral estoppel applies to the Judgment based on the claim for assault and battery. Solimán argues that collateral estoppel principles do not apply because the Judgment resulted from a default judgment and, under controlling New York law, it should not be given preclusive effect. Vyshedsky argues that the Judgment, supported by Soliman’s guilty plea, should be given collateral estoppel effect.

The application of collateral estop-pel in this case is complicated because it requires the Court to consider the effect of two separate state court proceedings— first, the civil action filed after Soliman’s guilty plea, in which the Judgment for damages was entered for assault and battery; and second, the criminal case in which Solimán pled guilty and judgment was entered for assault in the third degree. To obtain a judgment based on collateral estoppel in this Adversary Proceeding, Vyshedsky has the burden of establishing that the issues in the current denial of discharge action and in the prior [183]*183state court action are “identical” and were necessary to the judgment and actually determined by the state court; assuming Vyshedsky satisfies his burden, to avoid application of collateral estoppel, Solimán has the burden of establishing that he was not given a full and fair opportunity to litigate the issues previously.

Because the state law civil assault and battery cause of action did not require Vyshedsky to establish that Solimán intended to injure Vyshedsky — a required element of the denial of discharge cause of action — the Judgment in the civil case is not alone sufficient to trigger collateral estoppel entitling Vyshedsky to judgment declaring the debt non-dischargeable. The issue is whether the missing element (intent to injure) is supplied by collateral estoppel from Soliman’s guilty plea. This is a close question on the record before the Court. The Court has concluded that it will schedule an evidentiary hearing limited to the issue of whether Soliman’s actions were “a deliberate and intentional injury” to Vyshedsky — “not merely a deliberate or intentional act that leads to injury.” See Kawaauhau v. Geiger, 523 U.S. 57, 61, 118 S.Ct. 974, 140 L.Ed.2d 90 (1998). As explained below, to prevail on his denial of discharge claim, Vyshedsky must establish by a preponderance of the evidence that Solimán (1) intended to injure Vyshedsky, “or engaged in conduct that was substantially certain to cause injury,” Hough v. Margulies (In re Mar-gulies), Adv. Proe. No. 10-04050(SMB), 2013 WL 2149610, at *3 (Bankr.S.D.N.Y. May 16, 2013) (emphasis added), and (2) “acted wrongfully and without just cause or excuse, even in the absence of personal hatred, spite or ill will.” Id. at *4 (internal quotations and citations omitted).

The Debtor’s principal argument in this Court has focused on the amount of damages awarded in the Judgment. His counsel argues that preclusive effect should not be given to the determination of the amount of damages during the state court inquest in which Solimán did not appear, although the state court found that Soli-mán had proper notice. The Judgment established the amount of Soliman’s debt. He cannot obtain a(re)trial here on the amount of the debt. The elements of the denial of discharge claim focus solely on the Debtor’s conduct, not on the amount of the debt that was established by the state court judgment, which is final and conclusive in this action.

I. BACKGROUND

Solimán assaulted Vyshedsky on July 27, 2000. (See Plaintiffs Fad^ 1; Defendant’s Facts ¶ 1.) On March 7, 2001, Soli-mán pled guilty to Assault in the Third Degree, a misdemeanor. (See Plaintiffs Facts ¶ 2; Defendant’s Facts ¶ 1; Moss Deck Ex. A (“Plea Transcript” at 2-5); Vyshedsky Deck Ex. E (same).) In his plea allocution, Solimán admitted that he assaulted Vyshedsky on July 27, 2000 by biting his nose. (See Vyshedsky Aff. Ex. D.; Moss Deck Ex.

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Cite This Page — Counsel Stack

Bluebook (online)
515 B.R. 179, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vyshedsky-v-soliman-in-re-soliman-nysb-2014.