Heilbron v. Plaza

662 B.R. 207

Michael HEILBRON, Appellant, v. Benjamin PLAZA, Jr., Appellee.

23-CV-07443 (DG)

United States District Court, E.D. New York

Signed September 12, 2024

Neil H. Ackerman, Kirschenbaum & Kirschenbaum, P.C., Garden City, NY, Ronald David Weiss, Ronald D. Weiss, Esq., Melville, NY, for Appellant.

Eric Edward Rothstein, Rothstein Law PLLC, New York, NY, for Appellee.

MEMORANDUM & ORDER

DIANE GUJARATI, United States District Judge:

Appellant Michael Heilbron appeals from the September 28, 2023 Order and Judgment After Trial (the "September 28, 2023 Order and Judgment") of the United States Bankruptcy Court for the Eastern District of New York (the "Bankruptcy Court"), which found that Appellant acted willfully when he injured Appellee Benjamin Plaza, Jr. on June 28, 2008; found that Appellant acted maliciously when he injured Appellee on June 28, 2008; ordered and adjudged that judgment is entered in favor of Appellee and against Appellant on Appellee's nondischargeability claim under Bankruptcy Code Section 523(a)(6); and ordered and adjudged that the Default Judgment entered in the Supreme Court of the State of New York, County of Queens is nondischargeable pursuant to Bankruptcy Code Section 523(a)(6). See Notice of Appeal, ECF No. 1; Bankruptcy Record ("R.") 827-30, ECF No. 2.¹

For the reasons set forth below, the September 28, 2023 Order and Judgment is AFFIRMED.

BACKGROUND

I. Queens Criminal Court Action — Guilty Plea and Sentence

A criminal complaint dated July 1, 2008, filed in the Criminal Court of the City of New York, County of Queens (the "Queens Criminal Court"), charged that on or about June 29, 2008, Appellant committed the offenses of Assault in the Second Degree, in violation of N.Y. Penal Law § 120.05(1); Assault in the Second Degree, in violation of N.Y. Penal Law § 120.05(2); Assault in the Third Degree, in violation of N.Y. Penal Law § 120.00(1); and Harassment in the Second Degree, in violation of N.Y. Penal Law § 240.26(1). See R. 124-25.² In the criminal complaint, Deponent Detective Victor Herrera states, inter alia, that "he is informed by the complainant Benjamin Plaza" that on or about June 29, 2008 between 10:30 p.m. and 10:40 p.m., "at the NE intersection of 78 Street and 21 Avenue, County of Queens, State of New York," "an unapprehended other struck the Complainant in the side of his head with an unknown hard object causing the Complainant to fall forward and the Defendant, Michael Heilbron, proceeded to punch the Complainant in his chin causing his jaw to break into two pieces and his tooth to break and a laceration to the Complainant's right ear as well as substantial pain." See R. 124.

On February 5, 2009, Appellant pled guilty before the Honorable Dorothy Chin Brandt of the Queens Criminal Court to "assault in the third degree, a violation of 120.00 of the penal law." See R. 126-27. At the proceeding on February 5, 2009, Appellant confirmed that "[o]n or about 2/29³ of last year, about 10:30 in the evening at 78th Street and 21st Avenue in Queens, [Appellant] knowingly assaulted another person and caused injury to that person." See R. 127. Sentence was then imposed as follows:

The sentence is a conditional discharge, you have to stay out of trouble for one year, take the 12 week anger management program, and perform five days community service. You have to pay $200.00 in court fees, $50 in DNA fees, total of $250.00. And, you must obey an order of protection.

See R. 127-28; see also R. 129 (Certificate of Disposition).

II. Queens Supreme Court Action — Default Judgment

By Summons and Verified Complaint dated March 26, 2009, Appellee commenced an action against Appellant in the Supreme Court of the State of New York, County of Queens (the "Queens Supreme Court"), asserting a cause of action for assault and a cause of action for battery (the "Queens Supreme Court Action"). See R. 228-36. By Order dated August 31, 2009, the Queens Supreme Court granted Appellee's motion for default judgment and directed that an inquest and trial on damages be held on November 4, 2009. See R. 237. On November 4, 2009, the Queens Supreme Court awarded Appellee $75,000 for past pain and suffering, $50,000 for future pain and suffering, and $200 for medical expenses, for a total award of $125,200, plus interest from August 31, 2009. See R. 243. Judgment was entered on November 18, 2009 (the "Default Judgment"). See Default Judgment, Plaza v. Heilbron, No. 18-01055 (Bankr. E.D.N.Y.), ECF No. 1-4; see also R. 291.

By Order to Show Cause together with supporting documents dated August 29, 2016, Appellant sought an order granting certain relief, including "[a] stay in the execution of judgment;" "[v]acating the default judgment against [Appellant] pursuant to CPLR § 5015(a);" and "[a] mandatory injunction pursuant to CPLR § 6301, compelling [Appellee] to cease garnishing [Appellant's] current wages." See R. 245-46, 249. By Order dated December 5, 2016 and filed January 4, 2017, the Queens Supreme Court, inter alia, denied Appellant's request to vacate the Default Judgment, noting that "[t]he affidavit of the defendant Michael Heilbron sworn to on August 29, 2016 does not set forth a reasonable excuse for his default in appearing nor a meritorious defense to the action." See R. 298.

III. 2018-2020 Bankruptcy Court Proceedings

A. Bankruptcy Petition

On April 30, 2018, Appellant filed a voluntary petition under Chapter 7 of the Bankruptcy Code. See Voluntary Petition, In re Heilbron, No. 18-42486 (Bankr. E.D.N.Y.), ECF No. 1. On August 8, 2018, the Bankruptcy Court ordered a discharge under 11 U.S.C. § 727. See Order of Discharge, In re Heilbron, No. 18-42486 (Bankr. E.D.N.Y.), ECF No. 15.

B. Adversary Proceeding

On May 7, 2018, Appellee commenced an adversary proceeding against Appellant in connection with the Default Judgment, requesting that the Bankruptcy Court enter an order denying Appellant's discharge pursuant to 11 U.S.C. § 523(a)(6) ("Section 523(a)(6)"). See Complaint, Plaza v. Heilbron, No. 18-01055 (Bankr. E.D.N.Y.), ECF No. 1. On December 20, 2018, Appellee filed a motion for summary judgment. See R. 116. In support of his motion, Appellee argued, inter alia, that Appellee's claim was nondischargeable under Section 523(a)(6) and that Appellant was collaterally estopped from discharging his debt to Appellee due to Appellant's guilty plea under N.Y. Penal Law § 120.00, the Default Judgment, and the Queens Supreme Court's determination with respect to Appellant's motion to vacate the Default Judgment. See generally Memorandum of Law, Plaza v. Heilbron, No. 18-01055 (Bankr. E.D.N.Y.), ECF No. 14-1. Appellant opposed the motion for summary judgment. See R. 4-57.

On January 15, 2020, the Bankruptcy Court issued a Memorandum Decision (the "January 15, 2020 Decision") and an Order and Judgment (the "January 15, 2020 Order and Judgment"). See R. 58-109. The Bankruptcy Court granted Appellee's motion for summary judgment, concluding that Appellee had "met his burden to show that [Appellant] [was] collaterally estopped from contesting each of the elements of [Appellee's Section 523(a)(6)] claim;" that accordingly, "there [was] no genuine dispute as to a material fact with respect to those elements;" and that Appellant had "not met his burden to show that he did not have a full and fair opportunity to contest these matters in the Queens Criminal Court Action and the Queens Supreme Court Action." See R. 107; see also R. 108-09.

IV. Prior Appeal and Remand

By Notice of Appeal dated January 26, 2020, Appellant appealed the January 15, 2020 Order and Judgment and the January 15, 2020 Decision. See Notice of Appeal, Heilbron v. Plaza, No. 20-CV-00312 (E.D.N.Y.), ECF No. 1.

On appeal, as set forth in a Memorandum & Order dated March 19, 2021 (the "March 19, 2021 Order"), United States District Judge Carol Bagley Amon of the United States District Court for the Eastern District of New York, inter alia, (1) concluded that Appellee had failed to meet his burden of showing that the issue of "willfulness" was necessarily decided in the Queens Criminal Court Action, noting that "the record [did] not clearly establish that [Appellant] was convicted of committing an intentional rather than a reckless assault;" (2) concluded that Appellant was not collaterally estopped from contesting maliciousness by his criminal conviction, noting that "the Bankruptcy Court's finding of maliciousness was inextricably linked to its finding that [Appellant] pleaded guilty to an intentional assault;" and (3) vacated the Bankruptcy Court's decision and remanded the case to the Bankruptcy Court for further proceedings consistent with the March 19, 2021 Order — i.e., for a trial on the issues of willfulness and maliciousness. See Heilbron v. Plaza, No. 20-CV-00312, 2021 WL 1062034, at *5-6 (E.D.N.Y. Mar. 19, 2021).⁴

V. Bankruptcy Court Trial

On remand, the Bankruptcy Court held a trial on the issues as to which Judge Amon had remanded the case — willfulness and maliciousness. See R. 576-784; see also R. 789 (Bankruptcy Court stating that trial was held on "the twin issues of whether [Appellant] had acted willfully and whether he had acted maliciously"). At the trial, which took place on February 23 and 24, 2023, Appellee and Appellant each testified, and several exhibits were received into evidence, including documents from the Queens Criminal Court Action and the Queens Supreme Court Action. See R. 576-784; see also R. 801-12.

A. Testimony of Appellee

Appellee testified, inter alia, that on June 28, 2008 at around 10:30 p.m., as he was walking down the block from his house and towards his car, he saw Appellant and another individual whom he had never met coming in his direction. See R. 587-88.⁵ Appellee further testified:

And that's when Mr. Heilbron approached me, [a]sked me about what's going on with Melissa, and I said, I don't know what you're talking about. The second individual lacerated my right ear which caused me to

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