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dischargeability of a Virginia state court wrongful death judgment against the debtor. The Fourth Circuit held that neither the state court's wrongful death finding of fact nor the award of punitive damages was based on the same legal standard of "willful and malicious injury" required by § 523(a)(6), because it did not require a finding that the defendant intended to injure the deceased, and thus collateral estoppel did not apply in either party's favor.)
In re Troff, 479 F.3d 1213 (10th Cir. Mar. 15, 2007) (Debtor's criminal restitution obligation pursuant to Utah state law was non-dischargeable pursuant to § 523(a)(7), even in the absence of two of the three factors required by the statute - namely, that the payments be made to a governmental unit and they not compensate the victim's pecuniary loss. The plain language of § 523(a)(7) is not dispositive in light of Congress' long-established reliance on or acquiescence to the U.S. Supreme Court's decision in Kelly, which held that federalism prohibits bankruptcy law from interfering with state criminal sentences.)
Hughes v. Sanders, 469 F.3d 475 (6th Cir. Nov. 13, 2006) (Court imposedsanctions in legal malpractice litigation could not constitute nondischargeable debt pursuant to § 523(a)(7), where the money judgment entered against the debtor was derived from plaintiffs' lost claims and expenses caused by the debtor's legal malpractice. Because the sanctions were payable to the plaintiff and compensated him for his damages, they did not meet the requirement that the debt be "payable to and for the benefit of a government unit," and not be "compensation for actual pecuniary loss.")
Colton v. Verola (In re Verola), 446 F.3d 1206 (11th Cir. Apr. 20, 2006) (Restitution obligation imposed on Debtor as part of state criminal sentence is non-dischargeable, even when the restitution payments flow through a governmental entity to non-governmental victims. Section 523(a)(7) excepts from discharge a debt for a fine, penalty or forfeiture payable to and for the benefit of a governmental unit. Debtor argued that the restitution obligation was not for the benefit of a governmental unit because it ultimately was paid to nongovernmental victims. The Court disagreed, relying on the reluctance to interpret the Bankruptcy Code to invalidate state criminal judgments and relying on Kelly
v. Robinson, 479 U.S. 36 (1986), which stated that "§ 523(a)(7) preserves from discharge any condition a state criminal court imposes as part of a criminal sentence.")
Educational Credit Mgmt. Corp. v. Mason (In re Mason), 464 F.3d 878 (9th Cir. Sept. 28, 2006) (Bankruptcy court erred in finding that full repayment of student loans would cause debtor undue hardship under § 523(a)(8). Despite a learning disability, debtor had obtained a law degree, though he was unable to pass the state bar exam on his first try. He worked part-time as a home siding installer
