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Shenandoah Windows, Inc. v. Helton (In re Helton) (Case No. 04-51990; A.P. No. 05-05009) 5/5/2006

The Plaintiff filed a Complaint to determine that its claim was excepted from discharge under 11 U.S.C. § 523(a)(6).  Pursuant to Section 523(a)(6), debts for willful and malicious injury by the debtor to the property or person of another are nondischargeable.  Under Kawaauhau v. Geiger, 523 U.S. 57 (1998), in order to satisfy the requirements of Section 523(a)(6), a plaintiff must plead and prove that the debtor engaged in acts that caused an injury to the plaintiff, and (a) that the debtor acted willfully, with actual intent, objective or subjective, to cause injury to the plaintiff, where the harm was not merely the result of negligent or reckless acts of the debtor, and (b) that the debtor acted with malice.  Under this standard, the Plaintiff in this case failed to prove by a preponderance of the evidence that the debtor acted with actual objective or subjective intent to cause injury to the Plaintiff when the debtor liquidated the collateral and spent half of the cash receipts from the sale on business operations.

Date: 
Friday, May 5, 2006
Category: 
Adversary Proceedings
Dischargeability
Chapter: 
7