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Myers v. Trout (In re Trout) (Case No. 05-70246; A.P. No. 05-07054) 7/1/2008

The matter before the Court is the plaintiff's complaint to determine the dischargeability of debt pursuant to 11 U.S.C. § 523(a)(6), and the defendant's motion for summary judgment.  The debt in question was the result of a $20,000 jury verdict from a circuit court case.  In that case, the circuit court refused to award punitive damages, finding that the defendant's actions were not willful or malicious.  The Court held that the doctrine of collateral estoppel applies in this case, finding that because punitive damages under Virginia state law requires a lower threshold for demonstrating willful and malicious action, and because the circuit court found that the defendant's actions were not willful or malicious, the plaintiff is precluded from relitigating the issue and therefore cannot establish a necessary element of Section 523(a)(6).   Accordingly, the Court granted the defendant's motion for summary judgment, concluding that there is no genuine issue of material fact.

Date: 
Tuesday, July 1, 2008
Category: 
Adversary Proceedings
Collateral Estoppel
Dischargeability
Chapter: 
7