Case Summary:
Debtor was a licensed attorney in Wisconsin and the subject of multiple professional disciplinary proceedings brought by the OLR. Debtor was disciplined by the State Supreme Court in 2009 and was ordered to pay the OLR the costs of his disciplinary proceeding in the amount of $12,500.64. Debtor eventually filed bankruptcy and discharged this debt. Debtor petitioned to reinstate his law license, but the Wisconsin Supreme Court refused to act on the reinstatement petition until the dischargeability status of the disciplinary costs were determined by this Court. Debtor reopened his bankruptcy case and filed an adversary proceeding to determine that his debt was not excepted from discharge under 11 U.S.C. § 523(a)(7). Both the Debtor and the OLR agreed that summary judgment was appropriate to resolve this adversary. The Court found that the disciplinary costs were a fine or forfeiture that did not compensate the OLR for actual pecuniary loss. There was no genuine dispute as to any material fact that the debt owed to the OLR was excepted from discharge under 11 U.S.C. § 523(a)(7). The Court entered summary judgment in favor of the OLR. The Rooker-Feldman doctrine deprived the Court of subject matter jurisdiction over the Debtor’s constitutional claim under the Eight Amendment’s Excessive Fines Clause.
Statute/Rule References:
11 U.S.C. § 523(a)(7) -- Nondischargeability - Fines/Penalties/Forfeitures
Fed. R. Bankr. P. 7056 -- Summary Judgment
Fed. R. Civ. P. 56(a) -- Summary Judgment
Key Terms:
Attorney Disciplinary Costs
Nondischargeable Debt
Rooker-Feldman Doctrine
Subject Matter Jurisdiction