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William Dean Schmidt and Deborah Lynn Schmidt v. Rodney Ray Nelson (In re Rodney Ray Nelson)

Bankr. No.: 
16-50104
Adv. No.: 
16-5005
Chapter: 
7
Date of Decision: 
October 3, 2016
Issue: 
Whether the plaintiffs were entitled to summary judgment on their complaint seeking a determination their state court judgment against the debtor was excepted from discharge under 11 U.S.C. ยง 523(a)(6)?
Ruling: 
Yes. The debtor was collaterally estopped from relitigating the issue of whether the debt he owes to the plaintiffs is for a willful and malicious injury, since the state court jury necessarily found the debtor's conduct was targeted at the plaintiffs and was certain or almost certain to cause harm when it awarded the plaintiffs compensatory and punitive damages.
Full Bankruptcy Court Decision: