UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF KENTUCKY
EDWARD M. SAYLOR CASE NO. 89-00155
MARY A. SAYLOR
STANDARD FEDERAL BANK PLAINTIFF
VS. ADV. NO. 89-0148
EDWARD M. SAYLOR and
MARY A. SAYLOR DEFENDANTS
SUPPLEMENTAL MEMORANDUM OPINION
This matter is before the Court on the plaintiff's Motion to Reconsider and the defendant's Response thereto. This Court has previously entered herein a Summary Judgment, with accompanying Memorandum Opinion, finding that the defendants' debt to the plaintiff is nondischargeable pursuant to 11 U.S.C.'523(a)(6), and an Order overruling the plaintiff's Motion for Supplemental Summary Judgment for Damages.
The Memorandum Opinion previously entered herein found that on October 3, 1988, the defendants sold for $20,000.00 a motor home in which they had granted the plaintiff a security interest. They did not pay the money over to the plaintiff. This disposal of collateral was found to be a "willful and malicious injury" within the meaning of 11 U.S.C.'523(a)(6), thereby rendering the underlying debt nondischargeable. It is therefore the opinion of this Court that the plaintiff should be awarded damages in the amount of $20,000.00 at 8% per annum from October 3, 1988, until entry of judgment, and thereafter at the federal judgment rate.
It is further the opinion of this Court that the plaintiff is entitled to its costs, including attorney's fees. In In re Martin, 761 F.2d 1163 (6th Cir. 1985), the court stated that "creditors are entitled to recover attorney's fees in bankruptcy claims if they have a contractual right to them valid under state law,..." At 1168. The record in this case reveals that the contract entered into by the plaintiff and the defendants for the purchase of the motor home provided for attorney's fees and legal expenses. The plaintiff should therefore be awarded its costs, including attorney's fees in the amount of $2826.50.
A separate Amended Judgment consistent with this Opinion with be entered herein.
By the Court -
Elizabeth Lee Thompson, Esq.
John Paul Jones, II, Esq.