Trost v. Trost

Summarized by Daniel Waxman , KEWA Financial Inc.
7 years 9 months ago

Case Type:

Consumer

Case Status:

Affirmed

Citation:

17-1877 (6th Circuit, May 30,2018) Not Published

Tag(s):

Ruling:

Federal court conversion judgment was entitled to collateral estoppel effect and was excepted from discharge as arising from a "willful and malicious injury" as defined by 11 USC 523(a)(6).

Procedural context:

Appeal from Bankruptcy Appellate Panel's decision affirming Bankruptcy Court's grant of summary judgment in favor of plaintiff/appellee in non-dischargeability adversary proceeding.

Facts:

Sherry Trost owned all of the assets, and had assumed all of the liabilities, of her deceased husband's television show, Michigan Outdoors. Sherry entered into an agreement with her son Zachary to purchase the assets in exchange for Zachary paying off the assumed debt. Sherry transferred the assets to Zachary, but he never paid off the debts. Sherry sued Zachary in federal district court and, as relevant to this appeal, ultimately obtained a judgment for conversion under Michigan law. Zachary filed a chapter 7 bankruptcy petition and Sherry filed an adversary proceeding seeking a finding that the conversion judgment arose from a williful and malicious injury and was non-dischargeable.

Judge(s):

Moore, Cook, and McKeague

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