A judgment of sanctions against a lawyer in the form of defense costs is a non-dischargeable debt in bankruptcy, the 2nd Circuit has ruled. The court found that the debt is nondischargeable because it is a "willful and malicious injury by the debtor to another" for purposes of the Bankruptcy Code. Malice under 2nd Circuit law, Judge Wilfred Feinberg said, can be implied by the acts and conduct of the debtor within the context of the surrounding circumstances.
June 14, 2006 at 12:00 AM
1 minute read
The original version of this story was published on Law.Com
A judgment of sanctions against a lawyer in the form of defense costs is a nondischargeable debt in bankruptcy, the 2nd U.S. Circuit Court of Appeals has ruled.
In Ball v. A.O. Smith Corporation, 05-1152-bk, the court found that the debt is nondischargeable because it is a “willful and malicious injury by the debtor to another” for purposes of �523(a)(6) of the Bankruptcy Code.
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