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Any court that issues an injunction can modify it for good cause on the motion of a person adversely affected by it.
Appellant, a bankruptcy debtor, injured appellee. Appellee filed a personal injury suit against appellant in state court, and appellant listed appellee on his list of creditors. The bankruptcy court granted appellant a discharge from his debts to the listed creditors. Summary judgment was granted in an action brought by appellee against appellant in a state court action. Appellee filed a motion to reopen the bankruptcy proceeding to modify appellant's discharge so that appellee could ask the state court to reopen its suit for the purpose of proceeding against appellant's insurer, which the district court granted. Appellant sought review of the decision.
Could the appellant’s bankruptcy discharge be modified so that appellee could ask the state court to reopen its suit for the purpose of proceeding against appellant's insurer?
The court ruled that appellant's bankruptcy discharge had, by virtue of 11 U.S.C.S. § 524 (a)(2), the force of an injunction against a suit by any holders of listed debts to collect those debts from appellant. The court further held that any court that issued an injunction could modify it for good cause on the motion of a person adversely affected by it. The court found that appellant had filed a frivolous appeal by seeking review in the face of dispositive contrary authority without making arguments for overruling it. Accordingly, the judgment modifying appellant's bankruptcy discharge was affirmed.