Desmarais v. Jhelum Enterprises, LLC (In re Desmarais)
- Summarized by Jeffrey Snyder , Bilzin Sumberg Baena Price & Axelrod, LLP
- 12 years 10 months ago
- Citation:
- No. 12-15084 (Unpublished)
- Tag(s):
-
- Ruling:
- Court of Appeals AFFIRMED the District Court and Bankruptcy Court, largely relying on its precedent in In re Jennings, 670 F.3d 1329 (11th Cir. 2012), held that, notwithstanding original basis of debt, actual fraudulent transfer judgment is injury to creditor's property and can be excepted from discharge pursuant to section 523(a)(6) unless "just cause" is shown for the transfer of assets.
- Procedural context:
- Appeal to Court of Appeals after District Court affirmed bankruptcy court judgment excepting debt from discharge pursuant to Bankruptcy Code section 523(a)(6).
- Facts:
- Originally, Creditor held a state court judgment against the Debtor for past due rent. In order to prevent Creditor from executing on its judgment, the Debtor's principal transferred the Debtor's assets to himself. Creditor obtained a state court judgment against the Debtor for actual fraudulent transfer pursuant to Florida's version of the Uniform Fraudulent Tranfer Act, Fla. Stat. 726.109(1)(a). The Debtor attempted to obtain a discharge of debt arising from fraudulent transfer judgment and creditor sought to except the debt from discharge under Bankruptcy Code section 523(a)(6) because a fraudulent transfer made with "actual intent to hinder, delay, or defraud a creditor" is debt "for willful and malicious injury by the debtor to another entity or to the property of another entity."
- Judge(s):
- TJOFLAT, WILSON and ANDERSON
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