DOUGLAS D. DODD, Bankruptcy Judge.
Brian Bordelon, Jr. sued for a determination that his claim against debtor James Brad Boring is not dischargeable under 11 U.S.C. § 523(a)(6).
Boring, a licensed mobile home mover, owned and operated Affordable Movers, which transported and set up mobile homes. Bordelon and Affordable Movers, through Boring, orally agreed
When the job did not end as planned, Bordelon eventually sued Boring and Affordable Movers in Louisiana state court. The state court's reasons for judgment recite that Affordable Movers began moving the trailer on December 20, 2007 but rain stopped the move in Simmesport, Louisiana. The move resumed on December 28, 2007 and the trailer arrived at its intended site later that day.
Boring testified repeatedly at the trial that he did not intend to cause any damage to Bordelon's trailer. The defendant stated that he saw the site for the first time the day he delivered the trailer there. He explained his understanding that Louisiana law barred him, a licensed mobile home mover, from completing the mobile home set up in light of the rainy and muddy conditions that existed that day.
Boring was not available to complete the setup the next day, though his availability became moot once he left the job after an
Bordelon sued Affordable Movers, LLC and Boring in the Twelfth Judicial District Court for the Parish of Avoyelles and on November 19, 2008 obtained a money judgment for $32,500 against them in solido.
Bordelon contends that under Louisiana res judicata rules, no preclusive effect can be given to the state court ruling. His post-trial memorandum argues that the issue of intent was "never litigated at the state court level,"
The state court awarded Bordelon damages but its ruling does not govern the dischargeability of Boring's debt. See In re McDaniel, 368 B.R. 515, 518 (Bankr. M.D.La.2007). Even if the state court had ruled on Boring's intent, its ruling would not bind this court for purposes of a determination under 11 U.S.C. § 523(a)(6). Bankruptcy courts independently must determine whether a debt is nondischargeable under bankruptcy law. Brown v. Felsen, 442 U.S. 127, 99 S.Ct. 2205, 60 L.Ed.2d 767 (1979). See also Matter of Dennis, 25 F.3d 274, 277-78 (5th Cir.1994). Thus, the court must determine on this record if the defendant had the intent necessary to render his debt to the plaintiff nondischargeable under section 523(a)(6).
No party disputed the principal facts underlying the dispute, or that Bordelon's trailer was damaged during the move. The sole fact on which dischargeability depends is Boring's intent in proceeding with installation of the trailer at Bordelon's lot on December 28, 2007.
To prevail under § 523(a)(6), a creditor must prove by a preponderance of the evidence that the debt is not dischargeable. Grogan v. Garner, 498 U.S. 279,
More recently the Fifth Circuit has sharpened its analysis of the plaintiff's burden. It held that to render a debt nondischargeable under section 523(a)(6) "a debtor must commit an intentional or substantially certain injury [sic] in order to be deprived of a discharge. A debt is not excepted from discharge if the debtor has committed a willful or knowing act." In re Williams, 337 F.3d 504, 509 (5th Cir. 2003).
Bordelon insists that the defendant's intentional breach of the contract itself should render Boring's debt to him nondischargeable under § 523(a)(6). Indeed, the Fifth Circuit has held that a breach of contract may involve an intentional or substantially certain injury. See In re Williams, 337 F.3d 504, 510 (5th Cir.2003); Walker, 142 F.3d at 823; and Miller, 156 F.3d at 606. "[A] knowing breach of a clear contractual obligation that is certain to cause injury may prevent discharge under Section 523(a)(6). . . ." Williams, 337 F.3d at 510. But the intentional contract breach alone will not render a debt nondischargeable. "[T]he dischargeability of contractual debts under Section 523(a)(6) depends upon the knowledge and intent of the debtor at the time of the breach." Id. (Emphasis added.) And the plaintiff must prove that the defendant intended an "objective substantial certainty of harm or a subjective motive to cause harm." Miller, 156 F.3d at 606.
Application of these authorities to the evidence compels the conclusion that plaintiff did not prove that Boring had the intent necessary to make his debt to Bordelon nondischargeable under Bankruptcy Code section 523(a)(6).
Boring testified that he first visited the property where Bordelon's trailer was to be set up the day he delivered the trailer to the site. Boring claimed that even after he told Bordelon that the ground was too wet to actually reactivate the mobile home Bordelon insisted on reactivating it. In contrast, Bordelon testified at the state court trial that Boring alone made the decision to attempt reactivation of the trailer in the inclement weather and with undesirable soil conditions at the site on December 28. Bordelon's cousin, Jacob Adams, also testified in state court that Boring insisted on moving the trailer that day. However, the reason Boring proceeded with the work, as well as the reason he breached the contract by not completing the job, does not govern the outcome here: the crucial fact is whether Boring intended to cause injury to Bordelon or his property.
Boring did explain at trial that although he could not "look in the future," damage "normally happens when you are dealing with the mud and the water." But even that testimony does not demonstrate Boring's certainty that Bordelon's trailer would be damaged in the process. Additionally, the evidence established that the plaintiffs lot had an area of hard gravel and concrete on which Affordable could place the trailer's tires, which supports an inference that it was not substantially certain Boring's actions would cause damage to the trailer itself. Boring might have known the risks that could be involved in placing the trailer on the site at Bordelon's insistence but the plaintiff offered no proof that he knew, or was substantially certain, that the trailer would be damaged.
This court observed Boring during his testimony and concluded his statement that he did not intend to harm Bordelon's trailer was credible. This court also finds credible Boring's testimony that Bordelon insisted on proceeding with the installation despite the weather and job site conditions. In contrast, Bordelon did not appear to testify, instead offering a transcript of his own and his cousin's state court testimony. No other live witnesses testified on his behalf.
The transcribed testimony does not prove that Boring's actions were substantially certain to cause damage to Bordelon's mobile home, much less that he intended the damage. The state court record only supports a finding that the plaintiff's trailer sustained damage not as the result of Bordelon's intentional act, but rather because of his negligence. His angry departure from the job site does not alter that analysis, especially in light of Bordelon's insistence that he would not permit Boring to work on the mobile home after the two parted.
James Boring plainly breached his oral agreement with Brian Bordelon by walking off the job and never returning to complete the reactivation of the mobile home that sustained damage as a result of Boring's negligence. However, the evidence does not support a finding that Boring intended that damage, or that the damage was substantially certain to result from his actions. Therefore, it does not support a conclusion that James Boring