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IN RE LUGO

Civ. A. No. 88-3931.

94 B.R. 335 (1989)

In re Roberto LUGO, Debtor. Roberto LUGO, Plaintiff/Appellant, v. Glenn PAULSEN, Individually and in his capacity as Director of the New Jersey Division of Motor Vehicles; the N.J. 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, Defendants/Appellees.

United States District Court, D. New Jersey.

As Amended January 13, 1989.

Attorney(s) appearing for the Case

Neil J. Fogarty, Hudson County Legal Services, Jersey City, N.J., for Roberto Lugo.

Michael Buckley, Francis & Berry, Morristown, N.J., for Joint Underwriting Assn.

Felice Weiner, Deputy Atty. Gen., N.J. Div. of Law, Licensing & Econ. Development Section CN 112, Trenton, N.J., for State defendants/appellees.

OPINION

SAROKIN, District Judge.

INTRODUCTION

The court is here confronted with two conflicting legislative purposes. The federal law seeks to discharge debts and provide an insolvent person with a fresh start. The state law seeks to deter drunk drivers by requiring that they make a substantial contribution to a general insurance fund once they are convicted. Whether or not the obligation is characterized as a debt, a penalty or a mandatory insurance...

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