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In re Edwin Earl Elliott

Summarizing by Bradley Pearce

In re Donald and Jane Nichols

Summarizing by Lars Fuller

In re Hamilton

The rate of post-judgment interest on a nondischargeable debt depends on whether there was a judgment before or after filing, the Ninth Circuit BAP says.

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Case Type:
Case Status:
Affirmed in part and Reversed in part
BAP No. SC-17-1126-FBL & SC-17-1223-FBL (9th Circuit, Apr 17,2018) Published
BAP for 9th Circuit affirmed summary judgment on 523(a)(6) claim entered by bankruptcy court (S.D. Cal.). Bankruptcy court properly applied standard for willful injury; Ninth Circuit case did not conflict with US Supreme Court precedent. BAP reversed and remanded on issue of proper calculation of postjudgment interest, finding that state rate applied to state court judgment rather than federal rate. Bankruptcy court properly applied collateral estoppel to findings of fact and conclusions of law of state court judgment and state court findings established deliberate or intentional injury.
Procedural context:
Bankruptcy court (SD Cal.) entered summary judgment in favor of plaintiff creditors; debtor defendants and plaintiffs cross appealed to BAP for 9th Circuit.
Former employers, operators of academic counseling, tutoring, college prep, and standardized test prep business, sued former officer/director/shareholder and wife for claims including fraud and theft of corporate opportunity. Debtors had taken employee personnel files, student records, teaching materials, and lesson plans, curriculum tools, client lists, confidential information, and data from creditors' servers. Creditors obtained $2 million judgment for breach of fiduciary duty, breach of duty of loyalty, and other claims. Debtors filed bankruptcy under chapter 11. Judgment creditors sued to except debt from discharge under 11 USC 523(a)(6) (willful and malicious injury).
Faris, Brand, Lafferty

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