This is an action for exception to discharge brought by the debtors former husband, Heririe, on behalf of his minor children. The children, individually, are also plaintiffs in this action. The plaintiffs seek to recover funds spent by the debtor, Beatty, from savings accounts she was to maintain, after her divorce from Henrie, for the children. The action was initiated under 11 U.S.C. § 523(a) (2), (4), and (6). Through summary judgment, claims arising under § 523(a) (2) and (4) have been dismissed. The remaining count is for willful and malicious injury. This court has jurisdiction pursuant 28 U.S.C. S 157(b) (2) (I). I find for the plaintiffs.

Factual Background

      Henrie and Beatty were married August 27, 1971. They had six       3 ABR 531  children. The children received dividends from Alaska's Permanent Fund. Portions of the dividends were placed in savings accounts at First National Bank of Anchorage. Beatty's name appeared on each of the accounts for her minor children.

      Beatty filed for divorce in 1989. The case went to trial in 1990. Henrie was awarded custody of the children. Beatty received in excess of $43,900 through the property settlement. In the Amended Findings of Fact and Conclusions of Law, dated September 5, 1990, at section 13, page 6, the state court found:

The parties have reached agreement concerning the children's permanent funds. The Plaintiff shall maintain the accounts in the children's names in which a percentage of the children's permanent funds were placed prior to 1988, to turn over to the children when they turn eighteen years of age. The mother has agreed to turn over Angel's, who turned eighteen in April, 1990, account to her together with the passbook. The father shall maintain the accounts for deposit of the children's permanent fund and control the use by the children of their permanent funds from the year 1989 forward. The balance of the accounts maintained by the father will be turned over to the children when they reach the age of eighteen years.

Aaron	$1,829.34
Marlena	$1,789.59
Elizabeth	$1,169.58
Scott	$1,822.63
Charity	$1,836.27

Elizabeth (Beth) stayed with Beatty for some time following the divorce. Beatty spent $800 of Beth's money toward the purchase of a Jeep to be used by Beth. Beth rarely used the Jeep. Beatty drove the Jeep most of the time, sold it later and kept the proceeds. Beatty also used funds from Beth's account, roughly $269.58, for Beths personal needs.

      Henrie discovered Beatty had spent the funds in the children's accounts after Beth turned 18. He sued Beatty in state court to recover       3 ABR 532  the savings account balances. After Beatty failed to properly respond, Henrie received a $28,571.61 judgment against her on July 21, 1993. Beatty filed a Chapter 7 bankruptcy on August 6, 1993.

Analysis

      In prior proceedings before this court, I declined to give collateral estoppel effect to the state court judgment because the issue of whether Beatty's use of the savings accounts constituted a willful and malicious injury had not been "actually litigated" within the meaning of Grogan v. Garner, 498 U.S. 279, 285 (1991). Since the state court judgment arose out of Beatty's default, there was no hearing on the merits.

      Henrie must prove that Beatty's actions were "willful and malicious" under 11 U.S.C. § 523(a)(6) by a preponderance of the evidence. Id. at 290. The Ninth Circuit has defined "willful and malicious" as "a wrongful act . . . done intentionally, [which] necessarily produces harm and is without just cause or excuse . . . even absent proof of a specific intent to injure." In re Cecchini, 780 F.2d 1440, 1443 (9th Cir. 1986).

      Beatty argues that her actions in depleting the accounts were not wrongful acts, relying on AS 25.20.030. AS 25.20.030 requires parents to maintain their children "when poor and unable to maintain themselves." A child has the same obligation to a parent under the statute. Beatty was not poor and unable to maintain herself when she took the children's money. Under the final decree, she received $10,000 in property settlement funds in the fall of 1990. Beatty appears to have spent most of these funds very rapidly, as she plundered more than $8,000 from the children's accounts within just nine months of the final decree. She was also working at a floral shop earning $5 an hour and received another $10,000 in property settlement funds in August of 1991.

      Beatty used the children's money for herself when she had her own money in the bank and a steady paycheck. Under the circumstances, she cannot rely on AS 25.20.030 to justify her use of the children's accounts. Moreover, she violated her duty to maintain the accounts as set forth in the divorce decree. I conclude that her acts were wrongful.

      The other elements of Cecchini are also met. Beatty acted       3 ABR 533  intentionally. Her actions in taking and spending her childrens money necessarily produced harm: the money was dissipated and not returned. Considering the funds she received in property settlement and through her employment, her actions were without just cause or excuse.

      The children are entitled to interest on the funds. In re Der, 113 B.R. 218, 232 (Bankr. D. Md. 1989); Norte & Co. v. Huffines, 416 F.2d 1189, 1191 (2d Cir. 1969), cert. denied, 397 U.S. 989 (1970); American Timber & Trading Co. v. First Nat'l Bank of Ore., 690 F.2d 781, 784 (9th Cir. 1982). I will allow interest on the accounts at the rate of 10.5% from December 9, 1991, through November 16, 1994, as follows:

Name	Amount	Interest	Total
Elizabeth	$1,169.58	$357.00	$1,526.58
Aaron	1,829.34	556.50	2,385.84
Marlena	1,789.59	535.50	2,325.09
Scott	1,822.63	546.00	2,368.63
Charity	1,836.27	556.50	2,392.77

Since Elizabeth has reached the age of majority, judgment in the sum of $1,526.58 shall be entered in her favor. Judgment in the sum of $9,472.33, for the balance owed to the remaining minor children, shall be entered in favor of Henrie.

Conclusion and Order

      The Henrie children are entitled to have their debt excepted from discharge under 11 U.S.C. S 523(a)(6). Therefore,

IT IS ORDERED:

1. Plaintiff, Morgan E. Henrie, as guardian of his minor children, Charity C. Henrie, Scott E. Henrie, Marlena Jo Henrie, and Aaron Lee Henrie, shall recover the sum of $9,472.33 from the defendant, Linda Joyce Beatty, which debt is excepted from discharge in accordance with 11 U.S.C. § 523(a) (6);

2. Plaintiff, Elizabeth Ann Henrie, shall recover the sum of $1,526.58 from the defendant, Linda Joyce Beatty, which debt is excepted from discharge in accordance with 11 U.S.C. § 523(a) (6);

3. The plaintiffs are awarded their costs of suit. Each party shall pay their own attorney's fees;

4. Except as to the relief afforded above, the plaintiff's remaining claims for relief, including those under 11 U.S.C. § 523(a) (2)       3 ABR 534  and (a) (4), are dismissed with prejudice.

Let judgment be entered and docketed accordingly.

DATED: November 16, 1994.

BY THE COURT
DONALD MacDONALD IV
United States Bankruptcy Judge