Stay Cool On The Ice: Debt Created By Hockey Punch May Survive Bankruptcy
In 2004, during a gentlemen's hockey game, one of the players Mr. Best pulled the helmet off of and threw a punch at an opposing player, Mr. Leighton. The punch dropped the 6'2" , 225 pound Mr. Leighton to his knees and broke his jaw in three places. Mr. Leighton successfully sued and was awarded $41,000 plus interest and costs.
For approximately two years, Mr. Leighton took steps to collect this judgment by garnishing Mr. Best's wages. Then Mr. Best declared bankruptcy. Mr. Leighton moved for a declaration that the debt survived the bankruptcy under s. 178 of the Bankruptcy and Insolvency Act (the "BIA"). When unsuccessful he appealed.
According to s. 178 of the BIA, certain debts, which include a judgment for damages caused by "intentionally inflicted bodily harm", will survive bankruptcy. In other words, the impugned action must be intended to inflict harm. Harm must be the intended result.
The Court of Appeal ruled that harm was intentional in that Mr. Best had removed Mr. Leighton's helmet prior to throwing the punch. Additionally, the punch brought the 225 pound Mr. Leighton to his knees. The necessary element of intention was established and the judgment survives bankruptcy.
Other debts that survive bankruptcy include wrongful death resulting from physical or sexual assault and any court award for fraudulent committed by the bankrupt.
The Lesson: Bankruptcy can provide a person with a fresh start but not all debts are wiped out. It is prudent to speak to a lawyer prior to declaring bankruptcy to find out whether any existing debt will survive the bankruptcy.
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