Hansbrough
Hansbrough v. Birdsell
Opinion
Lead Opinion
Leighton, J.
I.
James Hansbrough appeals the district court’s judgment affirming the bankruptcy court’s award of sanctions against him for contempt of court, and its determination that the sanction would not be dischargea-ble in any personal bankruptcy filing Hansbrough might make in the future.
The bankruptcy court had the authority to sanction Mr. Hansbrough, the corporate debtor’s principal, for his repeated failure to comply with the court’s orders. A bankruptcy court cannot, however, adjudicate the subsequent dischargeability of a sanction properly imposed on a non-debt- or. While the court can impose a sanction that generally will not be dischargeable under 11 U.S.C. § 523 (a)(7) in a future bankruptcy, the determination of dis-chargeability ultimately remains the province of the bankruptcy court presiding over that debtor’s bankruptcy ease. The district court’s order affirming the bankruptcy court’s determination of non-dis-chargeability is therefore vacated.
II.
James Hansbrough is the sole owner of a corporation known as Hercules, Inc., the debtor in this case, which operated a gymnasium and health club in Phoenix. In a dispute with its landlord over the failure to pay rent,…