In re Trost; Trost v. Trost (Adversary)
- Summarized by J. Debbeler , Bricker Graydon LLP
- 8 years 8 months ago
- Case Type:
- Consumer
- Case Status:
- Affirmed
- Citation:
- Sixth Circuit BAP Case No. 16-8024; File Name: 17b0005n.06 (6th Circuit, Jun 28,2017) Not Published
- Tag(s):
-
- Ruling:
- Sixth Circuit BAP affirmed Bankruptcy Court's order granting summary judgment for the creditor in a non-dischargeability case under Section 523(a)(6) determining that a jury verdict in U.S. District Court for common law conversion in favor of the creditor -which had been affirmed by the Sixth Circuit- was entitled to collateral estoppel effect. BAP reviewed elements of collateral estoppel and found all were present and that Michigan common law conversion claim met the definition of "willful and malicious" under Section 523(a)(6)
- Procedural context:
- Stepmother sued stepson and wife in U.S. District Court for the Western District of Michigan for breach of contract and common law conversion. Plaintiff testified in 3 day jury trial. Defendants did not put on evidence. Jury found in plaintiff's favor on both counts. District Court Judge granted defendants' motion for judgment as a matter of law on breach of contract claim. On appeal, Sixth Circuit affirmed the common law conversion judgment and reversed the District Court on the breach of contract claim and reinstated the jury verdict. Defendants filed a Chapter 7 and Plaintiff filed a non-dischargeability action under Sections 523(a)(2) and (a)(6). Bankruptcy Court granted summary judgment on Section 523(a)(6)claim and other claim was dismissed.
- Facts:
- Fred Trost was a television star of "Michigan Outdoors" for 20 years. After financial difficulties, his wife Sherry took over for him after his death. She then struck a deal with her stepson and his wife for them to monetize the assets and pay the debts. When they failed at that she demanded the return of the assets and they refused.
BAP found that the wife met her burden of demonstrating all elements of issue preclusion were met. BAP cited portions of the Sixth Circuit opinion to show the intentional conduct needed to prove elements under Section 523(a)(6). The findings by the District Court and Sixth Circuit allowed the BAP to find all elements of collateral estoppel were present.
- Judge(s):
- Delk, Preston and Wise, Bankruptcy Appellate Judges
ABI Membership is required to access the full summary. Please Sign In using your ABI Member credentials. Not a Member yet? Join ABI now - it is absolutely worth it!
