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LUGO v. PAULSEN

No. 89-5090.

886 F.2d 602 (1989)

Roberto LUGO, Appellant, v. Glenn PAULSEN, individually and in his capacity as Director of the New Jersey Division of Motor Vehicles; N.J. Automobile Insurance Surcharge and Collection; New Jersey Automobile Full Insurance Underwriting Association; and W. Cary Edwards, individually and in his capacity as Attorney General of New Jersey.

United States Court of Appeals, Third Circuit.

Decided September 28, 1989.

Rehearing and Rehearing Denied October 26, 1989.

Attorney(s) appearing for the Case

Neil J. Fogarty (argued), Hudson County Legal Services Corp., Jersey City, N.J., for appellant.

Sherrie L. Gibble (argued), Felice J. Weiner, Office of Atty. Gen. of N.J., Trenton, N.J., for appellee State of N.J., Div. of Motor Vehicles, Glenn Paulsen, Director, DMV.

Michael E. Buckley, Francis & Berry, Morristown, N.J., for appellee New Jersey Auto. Full Ins. Underwriting Assoc.

Before MANSMANN, SCIRICA and SEITZ, Circuit Judges.

Rehearing and Rehearing In Banc Denied October 26, 1989.

OPINION OF THE COURT

SCIRICA, Circuit Judge.

The issue before us is whether an insurance surcharge, levied by the State of New Jersey on persons convicted of driving while under the influence of intoxicating liquor, may be discharged under Chapter 7 of the Bankruptcy Code. The district court determined that the surcharge qualified as "debt," but fell within the exception to discharge in 11...

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