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Tag Archives: Dischargeability

Bankruptcy – Dischargeability – Securities Law Violation – Settlement – No Admission (access required)

McKinny v. Allison Plaintiff previously sued defendant for securities law violations and obtained a settlement agreement in that case; however, the settlement agreement expressly states that neither party admits any wrongdoing or liability, and the subsequent stipulated judgment does not contain a finding of fault for a securities law violation.

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Tort/Negligence – Defamation Per Se – Doctors’ Dispute – Damages – Bankruptcy – Dischargeability (access required)

Janis v. Wefald The defendant-debtor went on a radio show and made statements he knew to be untrue in order to impugn plaintiff in his profession. Since defendant acted with malice, the damages the court awards to plaintiff (actual damages of $150,000 and punitive damages of $500,000) are not dischargeable in bankruptcy.

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Bankruptcy – Dischargeability – Payment to Ex-employee – Summary Judgment – Fact Issues – Collateral Source Rule (access required)

Buchi Corp. v. Martin There are factual disputes regarding (1) whether the debtor acted in a fiduciary capacity with regard to funds that his former employer deposited into his account and (2) whether the debtor knew the amount of commissions that the employer believed was due under the parties’ severance agreement. Without resolving these factual disputes, the court cannot grant summary judgment as to whether the debtor’s actions constituted fraud or defalcation under 11 U.S.C. § 523(a)(4) or willful and malicious injury under 11 U.S.C. § 523(a)(6).

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Bankruptcy – Dischargeability – Student Loans — Brunner Test (access required)

Boston v. Educational Credit Management Corp. Where the debtor’s educational loans are her only remaining debt, she expects continued significant increases in her income, and her reason for seeking discharge of her own student loans is so she can save money for her son’s college education, the debtor has not shown that she is entitled to a discharge of her student loans. Judgment for the defendant-creditor.

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Civil Practice – Collateral Estoppel – Default Judgment – Fraud – Dischargeability (access required)

Raleigh Plumbing & Heating, Inc. v. Lamanna Even though the defendant-debtor had a full and fair opportunity to litigate the plaintiff’s fraud claim in state court, the state court’s no-response default judgment was not the result of the actual litigation of plaintiff’s fraud claim. Plaintiff is not entitled to summary judgment.

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Bankruptcy – Dischargeability – State Court Judgment – Unfair Trade Practices – Intent to Defraud (access required)

Wilson v. Wall-McMahel. Even though the defendant-debtor engaged in a deceptive trade practice when she sold plaintiffs a franchise that included Franklin and Granville counties before she had secured a release for those counties from her exclusive distributors, the exclusive distributors had agreed to release the counties and were trying to work out the details of defendant's payment to them. Although defendant and her distributors never reached a payment agreement, defendant did not intend to defraud plaintiffs. Defendant's debt to plaintiffs is dischargeable in bankruptcy.

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