Heide v. Juve

Debtor appealed the final judgment of the bankruptcy court awarding plaintiff $350,490 and determining that amount to be nondischargeable under 11 U.S.C. 523(a)(2)(A). The bankruptcy appellate panel (BAP) concluded that the record did not support a finding that the $300,000 loan under the modified oral agreement was made in reliance on a fraudulent representation made concurrently with the creation of the debt. Thus, that portion of plaintiff's claim could not be excepted from discharge and the BAP reversed the bankruptcy court's judgment to that extent. However, the record did support a finding that the Las Vegas deal was between plaintiff and debtor individually and the further finding that plaintiff established each of the requirements of section 523(a)(2)(A) with respect to the $50,490 he loaned debtor pursuant to that agreement. Thus, the BAP affirmed the bankruptcy court's determination of nondischargeability to that extent. The court remanded for further proceedings. View "Heide v. Juve" on Justia Law