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In re: JERSEY CITY COMMUNITY HOUSING CORP

Summarizing by Amir Shachmurove

Cardwell v. Gurley (In re Cardwell)

Citation:
Cardwell v. Gurley (In re Cardwell), Case No. 12-40070 (5th Cir. Aug. 31, 2012) (unpublished) (per curiam).
Tag(s):
Ruling:
Affirmed district court's summary judgment affirming bankruptcy court's determination that creditor's state-court judgment against debtor was not dischargeable in bankruptcy. The state court's findings of fact and conclusions of law established the elements of actual fraud that support a determination that the judgment debt is non-dischargeable under 11 U.S.C. 523(a)(2)(A).
Procedural context:
Appeal from summary-judgment ruling by the U.S. District Court for the Eastern District of Texas that affirmed bankruptcy court's determination of non-dischargeability; reviewed de novo.
Facts:
Debtor Cardwell and creditor Gurley were business partners and co-owners of a LLC. Cardwell was the managing member of the LLC and was in charge of managing the LLC's day-to-day business. Cardwell made misrepresentations to Gurley to induce him to consent to various transactions that ultimately injured Gurley and benefited Cardwell. Gurley filed suit and obtained a judgment in state court against Cardwell. The state court entered findings of fact and conclusions of law that would support a finding of fraud, but did not recite the terms "fraud" or "intent to deceive." After Cardwell filed a petition for relief, Gurley sought a declaration that the judgment debt was non-dischargeable.
Judge(s):
Reavley, Jolly, Davis

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