Order on Plaintiff's Motion for Default Judgment on Complaint to determine dischargeability of debt pursuant to 11 U.S.C. §523(a)(6). Plaintiff filed a Motion for default judgment arising from a loan made by Plaintiff to Defendant and secured by various items of collateral. The Court held that Plaintiff's failure to move for entry of default created a procedural deficiency. It further held default judgment could not be granted as the allegations in the Complaint were legal conclusions and lacked sufficient detail to establish willful and malicious action under Section 523(a)(6) including the source or content of Plaintiff’s allegations, when, to whom, or why the collateral was transferred, or Defendant's conscious intent to violate the property rights of Plaintiff. Moreover, Plaintiff failed to clarify how Defendant's purported transfer of some but not all of the collateral justified damages in the full amount of the loan.
File:
Date:
04/30/2013