Findley v. State Bar (In Re Findley)

OPINION

KLEIN, Bankruptcy Judge.

The issue is whether California’s 2003 amendment of its Business and Professions Code (“Bus. & Prof.Code”) § 6086.10 designating attorney discipline cost awards as “penalties” legislatively reversed the result of the Ninth Circuit decision in State Bar v. Tagart (In re Taggart), 249 F.3d 987 (9th Cir.2001). The Taggart decision established that such awards are compensatory in nature and, thus, not excepted from discharge under 11 U.S.C. § 523(a)(7) as penalties that are not compensation for actual pecuniary loss. Construing the 2003 amendment as superseding…