McClendon v. Springfield, No. 13-41030 (5th Cir. 2014)
Annotate this CaseMcClendon was the president and sole shareholder of NIA Insurance, for which Springfield served as Chief Financial Officer. In 2007, McClendon accused Springfield of theft and fired him. NIA and McClendon sued Springfield in Texas state court, claiming theft and conversion. Springfield answered and counterclaimed, alleging defamation. The suit court jury determined that Springfield was entitled to $341,000 in actual damages for defamation. Later, McClendon filed a voluntary petition for Chapter 11 bankruptcy. Springfield filed a successful adversary proceeding, seeking to have the debt arising from the jury award declared non-dischargeable under 11 U.S.C. 523(a)(6). The bankruptcy court determined that McClendon inflicted a willful and malicious injury upon Springfield. The district court and Fifth Circuit affirmed, rejecting challenges to the sufficiency of the evidence and that the bankruptcy court impermissibly shifted the burden of proof to McClendon.
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