Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
Fourth Circuit: Debt Incurred As a Result of Willful and Malicious Injury May Be Dischargeable
The U.S. Court of Appeals for the Fourth Circuit recently held that a debt incurred as a result of a willful and malicious injury may nevertheless be dischargeable notwithstanding the provisions of 11 U.S.C. Section 523(a)(6). TKC Aerospace v. Muhs (In re Muhs), 923 F.3d 377 (4th Cir. 2019). The court found it to be of no consequence that a debtor's conduct giving rise to the injury, without more, was shown to be intentional; rather, the debtor must also have intended to cause injury to the creditor. In so holding, the TKC court has issued guidance to creditors seeking recovery of high-dollar lawsuits; proceedings that oftentimes precipitate bankruptcy filings.
Background
Charles Taylor Muhs was employed by TKC Aerospace, Inc. (TKCA) as a vice president of business development. In that role, Muhs had access to proprietary information: Muhs' employment contract prohibited him from disclosing confidential information or competing with TKCA for a period of six months after the termination of his employment. During his tenure with TKCA, Muhs assisted TKCA to compete for, and win, contracts with the Department of State for the modification of certain aircraft.
Muhs left his employment with TKCA, and began working with a competitor. Shortly thereafter, the competitor (with the help of Muhs) competed for, and was ultimately awarded, certain contracts with the Department of State for the modification of the same aircraft in connection with which TKCA had provided services. In response, TKCA initiated parallel lawsuits — the first being brought in Alaska against Muhs individually — alleging various causes of action, including Muhs' breach of Alaska's Uniform Trade Secrets Act. The second was commenced by TKCA against Muhs' new employer in Arizona, similarly alleging various causes of action including breach of Arizona's Uniform Trade Secrets Act. Muhs was a witness, but not a defendant, in the Arizona action, which proceeded to trial first.
This premium content is locked for Entertainment Law & Finance subscribers only
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
- Stay current on the latest information, rulings, regulations, and trends
- Includes practical, must-have information on copyrights, royalties, AI, and more
- Tap into expert guidance from top entertainment lawyers and experts
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
New York's Latest Cybersecurity Commitment
On Aug. 9, 2023, Gov. Kathy Hochul introduced New York's inaugural comprehensive cybersecurity strategy. In sum, the plan aims to update government networks, bolster county-level digital defenses, and regulate critical infrastructure.
Law Firms are Reducing Redundant Real Estate by Bringing Support Services Back to the Office
A trend analysis of the benefits and challenges of bringing back administrative, word processing and billing services to law offices.
How AI Has Affected PR
When we consider how the use of AI affects legal PR and communications, we have to look at it as an industrywide global phenomenon. A recent online conference provided an overview of the latest AI trends in public relations, and specifically, the impact of AI on communications. Here are some of the key points and takeaways from several of the speakers, who provided current best practices, tips, concerns and case studies.
CLE Shouldn't Be the Only Mandatory Training for Attorneys
Each stage of an attorney's career offers opportunities for a curriculum that addresses both the individual's and the firm's need to drive success.