Bryant v. Straup (In re Straup)
APPEAL
Unpublished
Plaintiff had a pending state court action against debtor in which she alleged that debtor had killed her husband by driving while intoxicated. Debtor's default had been entered in the state court action, and a motion to enter a default judgment had been filed and argued, but further proceedings were stayed by the filing of debtor's bankruptcy petition. Plaintiff filed an adversary complaint in the bankruptcy, alleging that the debt owed her by debtor was non-dischargeable under 11 U.S.C. § 523(a)(9). Plaintiff's motion for relief from stay to allow entry of a default judgment by the state court was denied by the bankruptcy court, as was her motion for partial summary judgment in the adversary action. The bankruptcy court dismissed plaintiff's case so she could appeal. Without a transcript of the bankruptcy court hearing, the district court assumed that summary judgment had been denied because plaintiff had no judgment and, therefore, could not make a claim pursuant to § 523(a)(9). The district court concluded that judgments based on drunk driving accidents could be entered postpetition, and that the bankruptcy court erred by denying plaintiff's motion for relief from stay. The district court instructed the bankruptcy court to allow plaintiff to liquidate her claim and seek a judgment in the district court action and, thereafter, to dispose of her dischargeability claim.