Wood v. Loader (In Re Loader)

53 A.L.R. Fed. 2d 669, 417 B.R. 604, 2009 Bankr. LEXIS 3137, 2009 WL 3208711
CourtUnited States Bankruptcy Court, D. Idaho
DecidedSeptember 28, 2009
Docket19-40050
StatusPublished
Cited by2 cases

This text of 53 A.L.R. Fed. 2d 669 (Wood v. Loader (In Re Loader)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, D. Idaho primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wood v. Loader (In Re Loader), 53 A.L.R. Fed. 2d 669, 417 B.R. 604, 2009 Bankr. LEXIS 3137, 2009 WL 3208711 (Idaho 2009).

Opinion

MEMORANDUM OF DECISION

JIM D. PAPPAS, Bankruptcy Judge.

Introduction

On March 5, 2008, Defendant Jack Loader (“Loader”) filed a petition for relief *607 under chapter 7 of the Bankruptcy Code. 1 Plaintiff Lori Wood (“Wood”) filed a proof of claim in the bankruptcy case for $223,209.68 based upon a state court money judgment she holds against Loader. 2 Wood then initiated this adversary proceeding in which she alleges that the debt upon which her claim is based should be excepted from Loader’s discharge.

A trial 3 in the adversary proceeding was conducted on August 20, 2009, at which the parties offered documentary evidence, witness testimony, and made legal arguments. At the conclusion of the trial, the Court took the issues under advisement. Having reviewed the evidence and record, the arguments of the parties, and the applicable law, the Court concludes that Loader’s debt to Wood is not excepted from discharge. 4

Facts 5

On July 24, 2004, Loader was hosting a barbeque at his home in Boise, Idaho. His friends, AI Ojeda and Roger Browning were in attendance, along with several of Loader’s family members. Ojeda also brought his two-year old son with him to the barbeque. At some point in the early afternoon, Loader decided to visit his adult son, Scott, who lived nearby. Loader had been drinking that afternoon, so he asked Ojeda, who had not been drinking, to drive him in Loader’s truck to Scott’s residence. Ojeda drove; Loader, Browning, and Oje-da’s son were all passengers.

Scott’s house was located adjacent to the apartment complex where Wood resides. After visiting with Scott for a short while, Loader and his friends decided to return to the barbeque at Loader’s residence. They got into Loader’s truck, with Ojeda in the driver’s seat, Loader in the front passenger’s seat, and Browning and Oje-da’s son both sitting in the back seat. Instead of leaving the parking lot via the same route they entered, Ojeda decided to drive beside Wood’s apartment building and exit through an alleyway. In order to do so, Ojeda needed to drive the truck over a large log pole which was lying in front of the truck, and which was being used as a parking barricade to separate the apartment complex from the parking lot.

Wood and several others were standing in or near the parking lot at the time, and were watching as these events unfolded. Several of these people encouraged Ojeda to drive over the log. Loader told Ojeda that he could do so if he so desired.

On his first attempt, Ojeda approached the log with the truck slowly and attempt *608 ed to drive up and over it. However, the tires of the pickup lost traction, and he was unable to drive over the log. Ojeda then backed the truck up a short distance from the log, apparently, to ponder his course of action.

At that point, from his position in the front passenger seat, Loader reached down and shifted the vehicle into four-wheel drive, while at the same time proclaiming loudly: “F — -this, go ahead and go over it!” Ex. 11, p. 89. 6 Ojeda immediately accelerated the truck in a second attempt to get over the log. This time, when the front wheels of the truck struck the log, the log was dislodged from the ground and pivoted around the truck until it struck Wood, who was standing nearby, in the leg. Wood was knocked to the ground and her leg was pinned underneath the log. Loader and Ojeda went to her side to assist, and found that she was seriously injured. Wood was transported to the hospital by ambulance, where she underwent surgery on her ankle. Wood spent several days in the hospital recovering, incurring significant medical expenses.

Wood sued both Ojeda and Loader in state court to recover compensatory and punitive damages on account of her injuries. In January, 2008, the parties participated in a four-day trial. At the conclusion of the evidence and argument, the state court instructed the jury that while Ojeda and Loader had admitted to being negligent, the jury must decide whether their negligence was the proximate cause of Wood’s injuries. See Jury Instruction No. 8, Docket No. 22. The jury was further asked to determine whether Wood was also negligent, and, if so, whether her own negligence was also a proximate cause of her injuries. See Jury Instruction No. 10, Docket No. 22. Responding to the questions on the special verdict form, the jury found both Ojeda and Wood to be negligent in causing Wood’s injuries; it apportioned 95% of the fault to Ojeda, and 5% to Wood. Ex. 20. The jury found Wood’s economic and non-eeonomic damages to be $34,000 and $170,000, respectively. Id.

The jury was also instructed by the state court regarding Wood’s claim for punitive damages. Again responding to the questions on the special verdict form, the jury found the conduct of Loader and Oje-da to have been “outrageous” and that *609 Loader and Ojeda were “acting in concert” in causing the accident. Id. The jury-awarded Wood punitive damages of $50,000 against Loader, and $180,000 against Ojeda. Id.

Shortly after the jury verdict was rendered, as noted above, Loader filed his chapter 7 bankruptcy petition. In his Statement of Financial Affairs, Loader disclosed the pending state court action against him. Loader apparently did not list Wood as a creditor in his schedules, and she did not receive notice from the Clerk regarding the bankruptcy filing.

On December 18, 2008, a judgment was entered by the state court against Loader and Ojeda. Ex. 21. In it, Loader and Ojeda were adjudged jointly and severally liable to Wood in the amount of $167,784.48, and individually liable to Wood for $55,425.20 and $199,529.40, respectively. Id. On January 18, 2009, Wood filed the complaint commencing this adversary proceeding asking the Court to determine that her claim against Loader is excepted from discharge in the bankruptcy case. 7

Discussion

The volatile combination of a powerful motor vehicle 8 and alcohol at a summer barbeque has resulted in five years of protracted, expensive litigation in state and federal courts. In the state court, a jury found that Loader’s conduct was sufficiently outrageous to warrant an award of punitive damages against him. Now, this Court must determine whether Loader’s conduct also satisfies the standards established by Congress to justify excepting his debt to Wood from discharge. A creditor that alleges that a particular debt should be excepted from discharge under § 523(a) has the burden of proving the elements of each provision by a preponderance of the evidence. Grogan v. Garner, 498 U.S. 279, 291, 111 S.Ct. 654, 112 L.Ed.2d 755 (1991).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Jenkins v. IBD, Inc.
489 B.R. 587 (D. Kansas, 2013)
Corso v. Walker (In Re Walker)
439 B.R. 854 (W.D. Pennsylvania, 2010)

Cite This Page — Counsel Stack

Bluebook (online)
53 A.L.R. Fed. 2d 669, 417 B.R. 604, 2009 Bankr. LEXIS 3137, 2009 WL 3208711, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wood-v-loader-in-re-loader-idb-2009.