505 F. App'x 603
8th Cir.2013Background
- Thoms, a former loan officer, arranged a cattle financing scheme with Van Daele; Thoms would buy cattle for $75,000 and lease them back for five annual payments.
- Thoms procured a $75,000 loan to fund the initial cattle purchase and used the cattle as collateral; he retained possession of the herd.
- The parties executed documents March 1, 2008 with no clear ownership terms for offspring; Van Daele relied on Thoms' assurances about herd changes.
- Thoms failed to make the March 1, 2009 lease payment; Van Daele repossessed 20 cows and multiple calves in April 2009.
- Thoms later failed to satisfy the debt; in late 2009 Van Daele sold the herd; Thoms filed for Chapter 7 bankruptcy on December 26, 2009.
- Van Daele sued to except the debt from discharge under § 523(a)(6), alleging willful and malicious injury to Van Daele and its property; the bankruptcy court denied relief, the BAP affirmed, and Van Daele appeals.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Thoms’ acts constitute willful and malicious injury under §523(a)(6). | Van Daele asserts intentional or certain-to-hollow consequences. | Thoms argues no willful or malicious injury proven. | No clear error; Van Daele failed to prove willful and malicious injury. |
Key Cases Cited
- In re Ungar, 633 F.3d 675 (8th Cir. 2011) (standard of review for bankruptcy court findings on appeal)
- In re Waugh, 95 F.3d 706 (8th Cir. 1996) (intent when willful injury requires certainty of consequences)
- In re Patch, 526 F.3d 1176 (8th Cir. 2008) (definition of willful and malicious injury; narrow construction of §523(a)(6))
- Kawaauhau v. Geiger, 523 U.S. 57 (U.S. 1998) (willful injury requires deliberate or certain-to-result conduct)
- In re Thompson, 686 F.3d 940 (8th Cir. 2012) (malice requires conduct targeted at creditor causing harm)
- Tamko Roofing Prods., Inc. v. Smith Eng'g Co., 450 F.3d 822 (8th Cir. 2006) (court may rely on ultimate facts rather than every fact)