Dragisic Ex Rel. White Eagle, Inc. v. Boricich (In Re Boricich)
464 B.R. 335
Bankr. N.D. Ill.2011Background
- Debtors Branko and Nada Boricich in Chapter 7 bankruptcy; adversary against plaintiff Dragisic on dischargeability of debt alleged to be nondischargeable under 11 U.S.C. § 523(a)(4).
- Judgment entered after trial: complaint allowed only as to $659,160.85 as nondischargeable under § 523(a)(4).
- Court noted practice of entering final dollar judgments in such cases, but raised Stern v. Marshall as controlling on post-trial remedies.
- Defendant moved to amend judgment reducing the amount “in fairness” to $437,894.08, and objected to a final dollar judgment; plaintiff moved to amend to add final dollar amount.
- Court discussed Stern, Hallahan framework, and that this adversary is a core bankruptcy matter, not a state-law counterclaim; final dollar judgment permissible to resolve nondischargeability amount.
- Court granted plaintiff’s motion to amend judgment to add a final dollar judgment and allowed costs on Bankruptcy Form No. B 263.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether final dollar judgment on nondischargeable debt is permissible post-Stern. | Dragisic supports final dollar judgment as part of adjudication. | Boricich argues Stern limits final judgments in certain contexts. | Yes; final dollar judgment authorized. |
| Whether Stern prevents entry of final judgment in a core § 523(a)(4) nondischargeability action. | Action is under Bankruptcy Code; not a state-law counterclaim. | Stern limits Article I court authority over non-bankruptcy claims. | No; Stern did not bar final adjudication here. |
| Whether the defendant’s amendment to reduce the judgment should be granted. | N/A | No error in findings; seeks reduction | Denied; separate order; plaintiff allowed final judgment. |
| Whether costs may be awarded in conjunction with the final judgment. | Costs should be recoverable. | Not addressed here. | Costs allowed via Bankruptcy Form No. B 263. |
Key Cases Cited
- Stern v. Marshall, 131 S. Ct. 2594 (2011) (Article I court may not adjudicate certain counterclaims; context differs from core § 523(a)(4) actions)
- In re Hallahan, 936 F.2d 1496 (7th Cir. 1991) (final dollar judgments often associated with nondischargeability determinations)
- Granfinanciera, S.A. v. Nordberg, 492 U.S. 33 (1989) (distinguishes private rights and jury trial in bankruptcy context)
- Travelers Cas. & Sur. Co. of Am. v. PG&E, 549 U.S. 443 (2007) (bankruptcy proceedings require examination of pre-bankruptcy rights when applying Code provisions)