Medical Lien Management, Inc. v. Dampier, Jr. (In re Dampier, Jr.)

Case Type:
Case Status:
BAP No. CO-16-020 (10th Circuit, Apr 11,2017) Not Published
BAP for 10th Cir. affirmed bankruptcy court (D. Colo.) entry of summary judgment declaring criminal restitution obligation nondischargeable under 523(a)(7). While 523(a)(7) excepts debt other than debt "for actual pecuniary loss," US Supreme Court and 10th Circuit precedents applying dicta to interpretation bound bankruptcy court. State's penal and rehabilitative interests was sufficient to overcome fact that under Colorado law, restitution was expressly defined as being "compensation for actual pecuniary loss," and while victim could enforce and sought nondischargeability, state was creditor.
Procedural context:
Private parties sued chapter 7 debtor to except criminal restitution debt from discharge. Plaintiff moved for partial summary judgment on pleadings, and bankruptcy court granted motion. Debtor defendant appealed to BAP for 10th Circuit.
Debtor stole money from employers, and was charged with theft and forgery. Debtor pled guilty to criminal theft under Colorado law. State criminal court ordered debtor to pay restitution to one employer in the amount of $108k, and to a second employer in the amount of $88k. After his sentence, he filed bankruptcy under chapter 7.
Karlin, Jacobvitz, Mosier

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