PRISCILLA ANNETTE ANDREWS v. MICHIGAN UNEMPLOYMENT INSURANCE AGENCY - Articles

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Posted by: Karen Belcher on May 29, 2018

Court: 6th Circuit Court (Published Opinions)

Attorneys 1:

ARGUED: Brian A. Rookard, GUDEMAN & ASSOCIATES, PC, Royal Oak, Michigan, for Appellants. Zachary A. Risk, OFFICE OF THE MICHIGAN ATTORNEY GENERAL, Detroit, Michigan, for Appellee. 

Attorneys 2:

ON BRIEF: Brian A. Rookard, GUDEMAN & ASSOCIATES, PC, Royal Oak, Michigan, for Appellants. Zachary A. Risk, OFFICE OF THE MICHIGAN ATTORNEY GENERAL, Detroit, Michigan, for Appellee.

Judge(s): Before: SILER, McKEAGUE, and WHITE, Circuit Judges.

Court Appealed: Appeal from the United States District Court for the Eastern District of Michigan at Ann Arbor. No. 5:15-cv-13681—John Corbett O’Meara, District Judge.

SILER, Circuit Judge. These two cases, consolidated for oral argument, present the same question regarding whether a penalty assessed by a governmental unit against the debtor due to fraud is dischargeable in a Chapter 13 bankruptcy proceeding. In both cases, the debtors fraudulently obtained unemployment benefits from the state of Michigan, and after determining these benefits were wrongfully paid, Michigan assessed a penalty. The debtors argue that the penalties assessed are dischargeable in a Chapter 13 bankruptcy. In each case, the district court disagreed, finding the penalties to be nondischargeable. We affirm the decisions below because the penalties are nondischargeable under 11 U.S.C. § 523(a)(2).