State Farm Mutual Automobile Ins. Co. v. Rodriguez (In re Rodriguez)

MEMORANDUM DECISION AND ORDER OF NONDISCHARGEABILITY

This dispute involves a stolen 1995 Ferrari 348 Spider (the “Ferrari”). Debtor-defendant James Manuel Rodriguez (“Defendant”) owned the Ferrari for many years before transferring title to his former live-in girlfriend, Shirley Sun. Ms. Sun insured the Ferrari with plaintiff-creditor State Farm Mutual Automobile Insurance Company (“Plaintiff’). The parties’ relationship deteriorated, and Ms. Sun eventually began seeing William Curtis—though the three continued living, working, and traveling together. Ms. Sun and Mr. Curtis left Defendant’s dental practice to form a spa business. Shortly thereafter, they traveled to China to visit Ms. Sun’s terminally ill father. Defendant did not accompany them. Instead, he drove them to the airport and then took his belongings—and the Ferrari—from their common residence. He did so without legal advice, and in full knowledge that Ms. Sun owned the car and had possession of it and that he needed permission to drive it. He never returned the Ferrari despite numerous demands from Ms. Sun, Mr. Curtis, and the police. Instead, he sued Ms. Sun and Mr. Curtis in state court to remove Ms. Sun’s name…