Unsecured Claims Admr v. Franks (In re Centennial HealthCare Corp.)
Aug
29
2005
Ruling
Objection to creditor's state court punitive damages claim was rejected since punitive damages claims are permissible though often subordinated claims under Code sections.
Procedural posture
Respondent judgment creditor filed a claim against the debtors alleging that the debtors were liable to her pursuant to a judgment from a state court in Massachusetts in the amount of $114,148, which included an assessment of punitive damages. Movant, unsecured claims administrator, objected to the claim because he contended that punitive damages were not allowed in a bankruptcy context.
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Court
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