THOMAS H. FULTON, Bankruptcy Judge.
THIS ADVERSARY PROCEEDING comes before the court on Plaintiff Kyle Bowe's motion seeking summary judgment against Defendant Joseph J. Kilmartin. For the reasons expressed below, the Court DENIES the Plaintiff's Motion.
On or about January 23, 2009,
Accounts of the incident differ. The Plaintiff claims he was struck first without provocation, while the Defendant insists that he "reflexively struck back" to defend himself against an attack from the Plaintiff. (Def.'s Objection Pl.'s Mot. Summ. J. at 1). The Plaintiff seems to have emerged from the fray significantly the worse for wear. He alleges, and the Defendant does not dispute, that he "suffered severe physical and emotional trauma necessitating medical intervention." (Pl.'s Mem. Supp. Mot. Summ. J. at 1). In an affidavit submitted to this Court, the Plaintiff lists a number of specific injuries including, but not limited to, fractured nasal bones, head contusions, and a lost tooth.
The Plaintiff pursued a criminal complaint against the Defendant. On November 30, 2010, a New Jersey grand jury indicted the Defendant on a charge of Aggravated Assault. N.J. STAT. ANN. § 2C:12-1 b(1). Instead of risking an Aggravated Assault conviction, the Defendant pled guilty to the lesser crime of Simple Assault. N.J. STAT. ANN. § 2C:12-1 a.
The Plaintiff also pursued a civil complaint against the Defendant in the Superior Court of New Jersey, Civil Division (the "New Jersey Court"). According to his affidavit, the Plaintiff initiated the New Jersey lawsuit on January 19, 2011, the Defendant was served with summons on February 18, 2011, the Defendant answered the complaint on April 18, 2011, and the parties then engaged in discovery.
But there was a problem with the arbitration award. The award stated that the Defendant was 100 percent liable, Plaintiff was zero percent liable, and that the Plaintiff was entitled to $60,000. The award, however, also stated that one of the reasons that the arbitrator made the award was that the Defendant had "pleaded guilty to N.J.S. 2C:12-1 b(1), aggravated assault." (Pl's Ex. 4, at 1). This was untrue: the Defendant had pled guilty to a different crime, Simple Assault.
In response to this error, the Plaintiff and Defendant — now represented by counsel — entered into a Consent Order that the parties then filed in the chambers of Judge M. Patricia Richmond on October 23, 2012. The Consent Order has been submitted in this case as Exhibit 4 to the Plaintiff's Motion for Summary Judgment.
The Consent Order states, first, that "Plaintiff Kyle Bowe filed this action to recover damages for personal injuries he sustained as a result of a January 24, 2009 incident involving Defendant Joseph Kilmartin." (Pl.'s Ex. 4, at 1). The Consent Order then recounts how the case was arbitrated to the favor of the Plaintiff and states that the arbitrator made several findings in support of his award, including: (1) that the Defendant pled guilty to aggravated assault; (2) that the Plaintiff sustained various injuries; (3) that the award was inclusive of any outstanding medical bills; (4) that the award was in addition to the restitution imposed by the criminal proceedings; and that a defense was presented. Next, the Consent Order explains as follows:
(Pl.'s Ex. 4, at 2). The Consent Order goes on to state that "[u]pon entry of judgment, all other conclusions and findings included in the original arbitration award (excluding the aforementioned reference to Defendant's guilty plea) shall remain the same." (Id.). Then, the Consent Order sets forth an enumerated list, apparently containing the findings and conclusions from the original arbitration award. These include a tally of the Plaintiff's injuries, statements as to the Defendant's liability, and recitations of the $60,000 owed in damages and the $11,580 owed in criminal restitution. Finally, the Consent Order states that the Defendant "guarantees payment of the final judgment award ... and consents to the jurisdiction of this Court for the purposes of enforcing this judgment." (Id.). The Consent Order does not state the causes of action or allegations listed in the Plaintiff's complaint, does not refer to the Defendant's mental state, and does not describe what actions the Defendant took that injured the Plaintiff.
In January of 2013, the Plaintiff moved the New Jersey Court for an order confirming the September 19, 2012 arbitration award. On February 8, 2013, via an "Order Confirming Arbitration Award and Entering Judgment," the New Jersey Court granted the motion and entered judgment in favor of the Plaintiff in the amount of $60,000. (Pl.'s Ex. 3). The order entering judgment does not contain any other information about the lawsuit; it contains no description of the contents of the pleadings or any other substantive information about the arbitration proceedings, the award, or the Consent Order.
The Defendant filed a chapter 7 bankruptcy petition on February 4, 2013. On April 1, 2013, the Plaintiff initiated this adversary proceeding, asking the Court to declare the New Jersey restitution award and arbitration award nondischargeable under 11 U.S.C. § 523(a)(6), which excepts from discharge any debt "for willful and malicious injury by the debtor." 11 U.S.C. § 523(a)(6).
The Defendant filed his answer on May 7, 2013. He admitted that the criminal restitution award was nondischargeable, but disputed the nondischargeability of the arbitration award, contending that none of his actions were willful or malicious.
On September 19, 2013, the Plaintiff filed his Motion for Summary Judgment. The Plaintiff argues that he is entitled to a § 523(a)(6) nondischargeability determination under a theory of collateral estoppel. According to the Plaintiff, the arbitration award against the Defendant was a conclusive determination that the Defendant willfully and maliciously injured him, thus foreclosing any relitigation of the issue of the Defendant's mental state. The Defendant contends that no determination of his mental state was ever made at the arbitration hearing, and that therefore a trial must be held to determine the dischargeability of the arbitration award.
The Bankruptcy Court for the Western District of Kentucky has previously described the standard to be employed in evaluating a motion for summary judgment:
United States v. Cassidy (In re Cassidy), 213 B.R. 673, 676 (Bankr.W.D.Ky.1997).
As conceded by the Plaintiff, "the party contesting the dischargeability of a debt under § 523(a)(6) has the burden of proving, by a preponderance of the evidence, that the debtor's conduct was both willful and malicious." (Pl.'s Mem. at 3) (citing Grogan v. Garner, 498 U.S. 279, 111 S.Ct. 654, 112 L.Ed.2d 755 (1991) and Spilman v. Harley, 656 F.2d 224, 229 (6th Cir.1981)).
11 U.S.C. § 523(a)(6) excepts from discharge debts "for willful and malicious injury by the debtor to another entity or to the properties of another entity." 11 U.S.C. § 523(a)(6). Because § 523(a)(6) uses the words "willful and malicious," any analysis of the statute must address the debtor's mental state when he or she caused the injury for which the debt was incurred.
The Supreme Court and the Sixth Circuit Court of Appeals have both addressed the mental state element of § 523(a)(6). According to the Supreme Court, "willful and malicious injury" refers to "a deliberate or intentional injury, not merely a deliberate or intentional act that leads to injury." Kawaauhau v. Geiger, 523 U.S. 57, 61, 118 S.Ct. 974, 140 L.Ed.2d 90 (1998) (emphasis in original). The Sixth Circuit Court of Appeals has further clarified the issue by stating that "unless `the actor desires to cause consequences of his act, or ... believes that the consequences are substantially certain to result from it,' he has not committed a `willful and malicious injury' as defined under § 523(a)(6)." Markowitz v. Campbell (In re Markowitz), 190 F.3d 455, 464 (6th Cir.
The Plaintiff argues that principles of collateral estoppel allow him to satisfy § 523(a)(6)'s mental state requirement. By his account, the arbitration award and resulting judgment conclusively established that the Defendant caused him a deliberate or intentional injury.
In deciding whether the judgment resulting from the New Jersey arbitration award conclusively determined the Defendant's mental state and thus precludes relitigation of that issue in this Court, the Court must "consider the law of the State in which the judgment was rendered." Marrese v. Am. Acad. of Orthopaedic Surgeons, 470 U.S. 373, 375, 105 S.Ct. 1327, 84 L.Ed.2d 274 (1985).
A convenient summation of New Jersey collateral estoppel law can be found in the case of Panniel v. Diaz, 376 N.J.Super. 597, 871 A.2d 156 (Law Div.2004):
Panniel, 871 A.2d at 162 (N.J.Super. Law Div.2004) (internal citations omitted).
New Jersey courts recognize the preclusive effect of arbitration awards, Id. at 164, so the mere fact that the Plaintiff obtained his judgment through arbitration does not pose a problem for him here. The problem for the Plaintiff is that the documents submitted to this Court contain no determination, nor even any mention, of the Defendant's mental state. Nor is it apparent that a determination of the Defendant's mental state was essential to the arbitration award or resulting judgment.
The Plaintiff points to the fact that the Defendant pled guilty under New Jersey's Simple Assault Statute. But a guilty plea to the crime of Simple Assault does not conclusively establish the Defendant's "willful and malicious" mental state, because criminal liability under New Jersey's Simple Assault statute can be predicated on behavior undertaken "purposely, knowingly[,] or recklessly." N.J. STAT. ANN. § 2C:12-1 a(1) (emphasis added).
It is apparent from the documents submitted here that the Plaintiff suffered painful injuries, for which the Defendant was held responsible in civil arbitration. Unfortunately for the Plaintiff, these same documents do not contain any decision as to the issue of the Defendant's mental state. That is an issue "normally not suited to disposition on summary judgment," Smith v. Hudson, 600 F.2d 60, 66 (6th Cir.1979), and the parties must now proceed to litigate it at trial.
Based on the foregoing reasoning, the Plaintiff's Motion for Summary Judgment is HEREBY DENIED.
THIS ADVERSARY PROCEEDING is before the Court on Plaintiff's Motion for
The Plaintiff also cites the § 523(a)(6) cases of Stewart Tilghman Fox & Bianchi v. Kane (In re Kane), 470 B.R. 902 (Bankr.S.D.Fla. 2012) and Kleman v. Taylor (In re Taylor), 322 B.R. 306 (Bankr.N.D.Ohio 2004). But in both these cases, debts were found nondischargeable after trial, not on a summary judgment motion.