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Ronald P. Hasley & Vicki A. Hasley, d/b/a Swite Enter. v. Tyler B. Irons (In re Irons), Ch. 7, BK15-40876, A15-4051 (Mar. 9, 2017)

After a trial interrupted by the plaintiff’s medical condition, which prevented him from testifying and necessitated further continuances, the court granted the debtor-defendant’s motion for judgment on partial findings under Rule 7052.

The plaintiffs were unable to establish the elements of their non-dischargeability claims under § 523(a)(2)(A) and § 523(a)(4). The state court judgment upon which they relied was essentially a default judgment, not decided on the merits, and had no res judicata effect in this adversary proceeding. There was no evidence of fraud or false representations, or justifiable reliance on such. The parties’ relationship was contractual, not based on an express trust. Judgment was entered for the debtor-defendant.

Thursday, March 9, 2017