Healy v. Rose (In re Healy)

Ninth Circuit Bankruptcy Appeals Court (NOT FOR PUBLICATION) BAP No. EC-13-1200-PaJuKu
The Bankruptcy Appeals Panel ("BAP") upheld the Bankruptcy Court's ruling that the Debtor's debt in relation to Plaintiff was excepted under 11 USC 523(a)(6) regarding judgments that were obtained against the Debtor, who is also an attorney, for malicious prosecution of a claim.
Procedural context:
The Debtor was being sued when he filed Chapter 7 and the Plaintiff lifted the stay to obtain a judgment against the Debtor. Then the Plaintiff brought a 11 USC 523(a)(6) claim to deny dischargeability as to two attorney fee judgments obtained for malicious prosecution by the Debtor. Debtor lost at the Bankruptcy Court level and appealed.
Debtor, an attorney, was in a dispute regarding his attorney fees. Debtor became aggressive and went after the Plaintiff for perjury for claiming $3,500 when in fact she only paid $1,250. The statement was made in a confidential hearing and Debtor brought a claim on the statements regarding the $3,500 fee. Eventually, Debtor lost for bringing a frivolous claim. Plaintiff brought a claim to deny dischargeability against Debtor.
Pappas, Jury, and Kurtz, Bankruptcy Judges

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