Berry v. Vollbracht (In Re Vollbracht)
Berry v. Vollbracht (In Re Vollbracht)
Opinion of the Court
Appellant Don Berry had an altercation with Appellee Travis Vollbracht at the latter’s home. Although the parties dispute some of the surrounding events, they agree that Vollbracht punched Berry multiple times after Berry approached Voll-bracht, causing serious injury, and that Berry never hit Vollbracht. Vollbracht was eventually tried and convicted of simple assault in Mississippi state court, Miss. Code Ann. § 97-3-7 (2001), his self-defense argument failing. Berry sued Vollbracht for civil assault, obtaining a default judgment that was later set aside. Partially as the result of that judgment, Vollbracht filed for bankruptcy. Berry filed an adversary complaint, seeking a ruling that any judgment stemming from the altercation would be non-dischargeable under 11 U.S.C. § 523(a)(6), which renders non-dis-chargeable debts arising from “willful and malicious injury by the debtor to another entity or to the property of another entity.” The bankruptcy court found the debt dischargeable. The district court affirmed, and Berry appeals.
In Kawaauhau v. Geiger,
Although the bankruptcy and district courts cited the above cases and the central subjective/objective test, the bankruptcy court, summarily affirmed by the district court, applied only the subjective test, finding that Vollbracht “did not intend the consequences of the seriousness of the blow that he inflicted.” But the subjective test requires only that Vollbracht intended some harm, not just serious harm.
However, the transcript reveals that the lower courts were concerned mainly that Vollbracht’s punches were delivered in self-defense, or at least that Vollbracht was less culpable given Berry’s actions. We similarly recognize that an injury levied as a legitimate response to someone else’s actions is usually the result of a “subjective motive to cause harm” and actions that can have an “objective substantial certainty” of causing harm. Yet such an injury cannot be “willful and malicious” under § 523(a)(6). Consequently, we hold that our two-part test must countenance the actions of the injured party. That is, for an injury to be “willful and malicious” it must satisfy our two-part test and not be sufficiently justified under the circumstances to render it not “willful and malicious.”
In applying an objective test for willful and malicious behavior, the district court is not estopped from reconsidering question of self-defense.
The Supreme Court has also found that res judicata does not apply to state court decisions on dischargeability, both before and after the changes to the law governing the powers of bankruptcy courts.
[T]he bankruptcy court is not confined to a review of the judgment and record in the prior state-court proceedings when considering the dischargeability of respondent’s debt. Adopting the rule respondent urges would take ... issues out of bankruptcy courts well suited to adjudicate them, and force those issues onto state courts concerned with other matters, all for the sake of a repose the bankrupt has long since abandoned. This we decline to do.20
Later, the Supreme Court in Grogan v. Gamer affirmed that “[s]ince 1970 ... the issue of non-dischargeability has been a matter of federal law governed by the terms of the Bankruptcy Code.”
We have stated: “[T]he mere fact that a creditor previously reduced her claim to a judgment does not preclude the bankruptcy court from inquiring into the true na
Applying collateral estoppel in this case would not uphold the purposes of that doctrine. We would not protect a party’s “adversaries from the expense and vexation attending multiple lawsuits,”
Pursuant to 5th Cir. R. 47.5, the court has determined that this opinion should not be published and is not precedent except under the limited circumstances set forth in 5th Cir. R. 47.5.4.
.523 U.S. 57, 59, 64, 118 S.Ct. 974, 140 L.Ed.2d 90 (1998).
. Id. at 61, 118 S.Ct. 974.
. Williams v. IBEW Local 250, 337 F.3d 504, 509 (5th Cir. 2003).
. In re Miller, 156 F.3d 598, 606 (5th Cir. 1998) (discussing whether trade secrets torts were willful and malicious).
. One could read the court's statement to mean that Vollbracht did not intend any harm, but that reading is defied by the court’s other statements and by the record.
. Even if Vollbracht subjectively did not intend any harm, his conduct may still be objectively willful and malicious. See Miller, 156 F.3d at 604 (“Miller's conduct, however, could still be 'willful' under the objective standard, if his acts were substantially certain to result in injury to Abrams.”)
. The bankruptcy court found, and Vollbracht concedes on appeal, that he intended to punch Berry.
. Berry also argues that Vollbracht’s Mississippi conviction establishes that he acted willfully and maliciously. The lower courts held, and we agree, that collateral estoppel does not apply to the Mississippi assault conviction, for various reasons. For one, the Mississippi assault statute at issue includes "negligently injuring the body of another.” Miss. Code Ann. § 97-3-7 (2001). If a jury found that Vollbracht acted negligently, the assault conviction would not require finding that Vollbracht’s actions were willful and malicious under § 523(a)(6). We recognize that Vollbracht's self-defense argument failed at his criminal trial, hence Berry could argue that the narrow issue of self-defense is foreclosed. However, we do not equate the required showing to establish self-defense at a criminal trial, under Mississippi or any other law, with the showing required to render an injury not “willful and malicious.” Self-defense is a technical doctrine of criminal law; our "exception” requires only that an injury otherwise falling under our two-part test is sufficiently justified to render it not "willful and malicious.” Even if the criminal self-defense issue were precluded (which it is not), other of Vollbracht's actions may negate a finding of willful and malicious injury. We describe our reasoning in further detail in the text.
. See, e.g., White v. World Finance of Meridian, Inc., 653 F.2d 147, 151 (5th Cir. 1981) (defining collateral estoppel as issue preclusion).
. See, e.g., id. at 150 (defining "true res judicata” as “claim preclusion”).
. In re Shuler, 772 F.2d 1253, 1255 (5th Cir. 1984) (quoting Brown v. Felsen, 442 U.S. at 139 n. 10, 99 S.Ct. 2205 (1979)).
. See, e.g., White, 653 F.2d at 150 n. 5 ("This Court has acknowledged that the term 'res judicata’ is now sweepingly used to incorporate both true res judicata and collateral es-toppel.” (citing Kaspar Wire Works, Inc. v. Leco Engineering & Mach., Inc., 575 F.2d 530, 535-36 (5th Cir. 1978))).
. Shuler, 722 F.2d at 1256 n. 2 (quoting White, 653 F.2d at 151).
. In re Howe, 913 F.2d 1138, 1143-44 (5th Cir. 1990).
. Id. at 1144.
. Carey Lumber Co. v. Bell, 615 F.2d 370, 377 (5th Cir. 1980).
. Id. at 378.
. The major changes include the Court’s decision in Northern Pipeline Construction Co. v. Marathon Pipe Line Co., 458 U.S. 50, 102 S.Ct. 2858, 73 L.Ed.2d 598 (1982), and the Bankruptcy Amendments and Federal Judgeship Act of 1984.
. 442 U.S. 127, 129, 99 S.Ct. 2205, 60 L.Ed.2d 767 (1979).
. Id. at 138-39, 99 S.Ct. 2205.
. 498 U.S. 279, 284, 111 S.Ct. 654, 112 L.Ed.2d 755 (1991).
. Id. at 280-81, 111 S.Ct. 654 (“Section 523(a) of the Bankruptcy Code provides that a discharge in bankruptcy shall not discharge an individual debtor from certain kinds of obligations, including those for money obtained by 'actual fraud.’ ”).
. Id. at 284, 111 S.Ct. 654.
. Id. at 284-85, 111 S.Ct. 654.
. 149 F.3d 387, 391 (5th Cir. 1998) (quoting Copeland v. Merrill Lynch & Co., 47 F.3d 1415, 1422 (5th Cir. 1995)).
. Dennis v. Dennis, 25 F.3d 274, 278 (5th Cir. 1994) (citations omitted).
. In re Rahm, 641 F.2d 755, 757 (9th Cir. 1981) (''[I]n this circuit a prior state court judgment has no collateral estoppel force on a bankruptcy court considering dischargeability unless both parties agree to rest their cases on that judgment. At most, a prior judgment establishes a prima facie case of non-dis-chargeability which the bankrupt is entitled to refute on the basis of all relevant evidence.” (citations omitted)).
. Montana v. United States, 440 U.S. 147, 153, 99 S.Ct. 970, 59 L.Ed.2d 210 (1979).
. Id.
. Norman v. Bucklew, 684 So.2d 1246, 1253 (Miss. 1996) (quoting Jordan v. McKenna, 573 So.2d 1371, 1375 (Miss. 1990)).
Dissenting Opinion
dissenting:
While I concur in the reversal of the judgment, I respectfully dissent from the majority’s holding that Vollbracht may re-litigate self-defense on remand to the bankruptcy court in an effort to prove that his actions were not “willful and malicious” under 11 U.S.C. § 523(a)(6).
I agree with the majority’s holding that Vollbracht’s criminal conviction for simple assault in Mississippi does not automatically compel the conclusion that his actions were “willful and malicious” under § 523(a)(6), because the assault statute permits a conviction for negligent infliction of injury. See Miss.Code Ann. § 97-3-7.
I also agree with the majority’s statement of law that for conduct to be considered “willful and malicious,” it must satisfy (1) the subjective/objective test of Kawaauhau v. Geiger, 523 U.S. 57, 118 S.Ct. 974, 140 L.Ed.2d 90 (1998) and (2) not be sufficiently justified under the circumstances. As to the first prong, I strongly agree with the majority’s finding that Voll-bracht’s “haymakers” on Berry easily satisfy Kawaauhau’s subjective/objective test.
As to the second prong, however, I reject the majority’s holding that Vollbracht be allowed to present evidence of self-defense on remand as justification for his actions against Berry. I consider Voll-bracht to be collaterally estopped from again asserting the claim of self-defense, because it was previously litigated, rejected, and essential to his conviction in his state criminal trial for assault. See, e.g., Raju v. Rhodes, 7 F.3d 1210, 1214-15 (5th Cir. 1993) (applying Mississippi law and stating that parties are precluded from relitigating a specific issue when it has actually been litigated, determined by, and essential to the judgment in the prior action); Norman v. Bucklew, 684 So.2d 1246, 1253 (Miss. 1996); see also In re Granoff, No. 05-33028, 2006 WL 1997408, at *8 (Bankr.E.D.Pa. June 6, 2006) (holding that a criminal conviction for assault is preclu-sive on the issue of self-defense as a justification for debtor’s conduct, because “[t]he state court must have considered the debt- or’s claim of self-defense and found the claim not to be credible, or the debtor could not have been convicted of simple assault”). Moreover, even though Voll-bracht bore the initial burden of production on self-defense, his success in doing so then required the prosecution to bear the burden of persuasion in proving the absence of self-defense beyond a reasonable doubt. See Harris v. State, 937 So.2d 474, 481 (Miss.App. 2006) (citing Heidel v. State, 587 So.2d 835, 843 (Miss. 1991)). As the level of proof required in the civil action is the much lower preponderance-of-the-evidence standard, the factual rejection of self-defense in the prior criminal trial supports the application of collateral estoppel in the subsequent civil action. Accordingly, Vollbracht should not receive a second bite at the “self-defense” apple, as the majority would allow. Without this defense, Vollbracht’s “haymakers” on Berry would undoubtedly have been considered “willful and malicious” and his debt would not have been discharged.
The majority recognizes that the bankruptcy court could preclude the “narrow” issue of self-defense on remand. Nevertheless, the majority goes on to state that Vollbracht could present facts that would support his self-defense claim, ie., evidence as to Berry’s actions and reasons as to why Vollbracht would be less culpable. Thus, under the majority’s rationale, Voll-bracht would essentially be able to present all of the facts related to his self-defense claim, even if the bankruptcy court precluded the issue of self-defense. I do not see the distinction that the majority draws, cannot agree with its reasoning, and therefore respectfully dissent. I would have rendered judgment in favor of Berry and not discharged Vollbracht’s debt.
Reference
- Full Case Name
- In the Matter Of: T.J. VOLLBRACHT, Debtor. Don Berry, Appellant v. T.J. Vollbracht, Appellee
- Cited By
- 29 cases
- Status
- Unpublished