Opinion ID: 489609
Heading Depth: 1
Heading Rank: 1

Heading: facts

Text: 2 The Latches were defendants in a prior district court case, along with their son, Michael Latch, and the corporate defendant (and family business), South Dade Automotive Service, Inc. The jury found the Latches liable for civil theft related to the misappropriation of wire transfer proceeds in connection with plaintiff/creditor Sunco Sales, Inc. (Sunco Sales). The jury rendered a special verdict pursuant to Fed.R.Civ.P. 49(a) and gave answers to 47 questions relating to the culpability of each party. The district judge ordered recovery of both compensatory and punitive damages from the defendants. The Latches subsequently filed for protection in the bankruptcy court in a Chapter 7 proceeding. 3 The plaintiff in the district court case, Sunco Sales, brought a complaint in bankruptcy to determine the dischargeability of the debt. Sunco Sales alleged that the judgment debt was not dischargeable since it fell within the exceptions to discharge sections of the Bankruptcy Code, 11 U.S.C. 523(a)(2), (4), and (6). 1 These sections except from discharge any judgments arising from fraudulent conduct or willful and malicious injury by the debtor. Sunco Sales contended that the prior judgment for civil theft demonstrated such willful and malicious conduct on the part of the Latches. 4 The bankruptcy judge held a hearing on this complaint; the sole evidence presented was the final judgment entered in district court and the special jury verdict interrogatories. The judge found the interrogatories ambiguous on the issue of willfulness and maliciousness. Consequently, the judge found that this evidence constituted an insufficient basis to establish the necessary elements of willfulness and maliciousness, and he found the judgment debt was dischargeable in bankruptcy. Sunco Sales appealed to the district court, arguing that it had submitted sufficient evidence for a finding of nondischargeability. The district judge found that the relevant Florida statute for civil theft had an intent requirement which constituted the elements of willful and malicious injury under the bankruptcy code. Thus, he found that Sunco Sales had presented sufficient evidence to meet its burden of proof and that the bankruptcy court erred in finding dischargeability. The Latches appeal from that decision.