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Ricky Sharpton v. Susan Manchester, Chapter 7 Tr

Summarizing by Lars Fuller

Adkins v Wentz & Wentz (In re Adkins)

Case Type:
Business
Case Status:
Affirmed
Citation:
BAP No. NV-18-1204-KuTaB (9th Circuit, Mar 05,2019) Not Published
Tag(s):
Ruling:
BAP for 9th Circuit affirmed judgment of bankruptcy court (D. Nev.) in favor of defendant-debtor on plaintiff=creditor's 11 USC 523(a)(6) claim. Notwithstanding application of collateral estoppel to state court judgment, bankruptcy court findings that debtor lacked subjective intent to harm plaintiff was not clearly erroneous. State court judgment on defamation included requisite element that debtor acted "intentionally with at minimum negligence." Plaintiff failed to prove at trial that debtor acted with intent to injure plaintiffs or with substantial certainty that injury would result.
Procedural context:
Bankruptcy court (D. Nev.) entered judgment in favor of defendant on plaintiff's 11 USC 523(a)(6) claim. Plaintiff appealed to BAP for 9th Circuit.
Facts:
Debtor was in business of selling sports card and participated in on-line forum regarding sports card collecting. Debtor made negative statements in on-line forum about plaintiffs, brothers in the business of selling sports cards. Brothers sued debtor in state court on defamation claims. Brothers prevailed on summary judgment under state law claims that included as intent element "intentionally made and at a minimum negligent." State court entered judgment in excess of $1 million, including attorneys fees and costs. Debtor filed bankruptcy under chapter 7. Brothers commenced non-dischargeability proceeding seeking to except state court judgment from discharge under 11 USC 523(a)(6).
Judge(s):
Kurtz, Taylor, Brand

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