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Eighth Circuit Bankruptcy Court Rules Creditor’s Claim of Abuse Constituted ‘Personal Injury Tort’ Claim
In a matter of first impression, the U.S. Bankruptcy Appellate Panel for the U.S. Court of Appeals for the Eighth Circuit determined that allegations of abuse constituted a personal injury tort claim, reversing a lower court’s conclusion that the allegations constituted a mental health condition.
On Oct. 17, the federal appellate court reversed the U.S. Bankruptcy Court for the District of Minnesota ruling that creditor Roy A. Arrieta’s claim against debtor Shannon Lee Smith for $400,000 for personal injury wasn’t a “personal injury tort” claim. Following back and forth between the couple in bankruptcy court, Arrieta accused Smith of abusing him verbally, emotionally and physically during their time in a relationship, resulting in him suffering from various mental health conditions.
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