Debtor Stephen C. Baca filed for bankruptcy under Chapter 13. Enigami Systems, Inc. filed suit against Baca seeking a determination that its claim for attorney's fees and costs, which were awarded under Colorado's Frivolous and Groundless Litigation statute, should be excepted from discharge pursuant to 11 U.S.C. § 1328(a)(4). That provision states that damages awarded in a civil action resulting from willful or malicious injury by the debtor that caused personal injury may be nondischargeable in bankruptcy.
Enigami argued that it had suffered "personal injury," as that term was used in the Bankruptcy Code, and therefore was entitled to have its debt excepted from discharge. How should the court rule? What public policies are at stake?