Luebbert v. Global Control Systems, Inc., No. 19-2751 (8th Cir. 2021)
Annotate this Case
The Eighth Circuit took this opportunity to clarify its jurisprudence about exceptions to discharge under 11 U.S.C. 523(a)(6) and concluded that a judgment for an intentional tort is not necessary to find judgment debt for a breach of contract nondischargeable. The willfulness requirement is met when the bankruptcy court finds facts showing that the debtor's conduct accompanying the breach of contract amounted to an intentional tort against the creditor. The court perceived that this aligns with the core of the analyses performed by the Ninth and Fifth Circuits.
In this case, debtor sought to discharge hundreds of thousands of dollars in judgment debt in bankruptcy after a breach of contract lawsuit indebted him to his former employer. The court affirmed the bankruptcy court's determination that the debt resulted from his infliction of a willful and malicious injury on his former employer and so was non-dischargeable under 11 U.S.C. 523(a)(6). In this case, debtor's conduct amounted to an intentional tort under Missouri law.
Court Description: [Kobes, Author, with Smith, Chief Judge, and Benton, Circuit Judge] Civil case - Bankruptcy. The facts underlying debtor's former employer's judgment against him showed he caused a willful and malicious injury to the employer, and the bankruptcy court did not err in concluding the judgment debt was nondischargeable under 11 U.S.C. Sec. 523(a)(6); the court takes this opportunity to clarify its law about exceptions to discharge under Sec. 523(a)(6) and holds that a judgment for an intentional tort is not necessary to find judgment debt for a breach of contract nondischargeable; the willfulness requirement is met when the bankruptcy court finds facts showing the debtor's conduct accompanying the breach of contract amounted to an intentional tort against the creditor; under Missouri law, debtor's actions here amounted to the intentional tort of conversion.
Some case metadata and case summaries were written with the help of AI, which can produce inaccuracies. You should read the full case before relying on it for legal research purposes.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.