Record contained sufficient evidence to support Bankruptcy Ct.’s finding that debtor did not act maliciously when laying off most of its electricians, after labor organization unsuccessfully campaigned to unionize said employees of debtor’s company, so as to make $400,000 debt (created by NLRB finding that debtor violated N.L.R.A. when laying off said employees) dischargeable in debtor’s Chapter 7 bankruptcy. While NLRB argued that debtor was collaterally stopped from litigating malice issue, NLRB failed to adequately identify any specific finding in prior NLRB ruling regarding issue of debtor’s malice that should be given preclusive effect in instant Bankruptcy Ct. proceeding. Moreover, prior NLRB proceeding lacked specificity on issue of debtor’s intent. (Dissent filed.)
Federal 7th Circuit Court
Civil Court
Collateral Estoppel