Court Opinion

ID: 9479438
Source: CourtListenerOpinion
Date Created: 2023-08-05 07:18:44.265242+00
Date Added: 2024-06-11T17:47:02.711970
License: Public Domain

*1382JOHN R. GIBSON, Circuit Judge,
dissenting.
I respectfully dissent. While much of the court’s discussion reflects the body of law that has developed on the approach to Chapter 13 eases, the court’s enthusiasm in avoiding judicial activism causes it to stand justice on its head.
The district court properly observes that in a Chapter 7 proceeding under 11 U.S.C. § 523(a)(6) a judgment resulting from an intentional tort would not be dischargeable. In the judicial gloss that has been imparted to the nondischargeability issue in the Chapter 13 context, and specifically the requirements of 11 U.S.C. § 1325(a), we have looked to the totality of the circumstances. We include in our inquiry the type of debt sought to be discharged, whether any such debt is nondischargeable in Chapter 7, the motivation and sincerity of the debtor and the existence of special circumstances, with illustrative reference to inordinate medical expenses.
In our decisions in Estus and Zellner, we also indicated that consideration should be given as to whether the debtor has “unfairly manipulated the Bankruptcy Code.” See ante at 1379. Under these circumstances, I think the bankruptcy court and district court were clearly erroneous in their determination that the judgment debt for intentionally inflicting a nearly fatal, gunshot wound on the creditor Handeen should be discharged. The court today is swayed by the bankruptcy court’s concern with the debtor having to live the rest of his life with a significant judgment that would be inimical to a fresh start. See ante at 1380. This leaves completely out of the equation the fact that the intentionally injured creditor has to live the rest of his life with the injuries inflicted and with the partial amount paid on the judgment as his only balm.
As the Seventh Circuit in Matter of Smith, 848 F.2d 813, 821 (7th Cir.1988), observed, the totality of the circumstances test can lead to a conclusion that the bankruptcy court erred in failing to consider the circumstances in which the debt arose and the fact that they were nondischargeable under Chapter 7. The circumstances under which the debt was incurred is a fact that may not be ignored. I have no hesitation in holding that the bankruptcy court and the district court were clearly erroneous in ignoring the circumstances under which the debt was incurred and whether it would be dischargeable under Chapter 7. I would reverse and hold the judgment for the intentionally inflicted injuries nondischargeable.