DSC National Properties, LLC v. Johnson (In re Johnson)
- Summarized by Scottie Kleypas , Scottie S. Kleypas Law, LLC
- 12 years 4 months ago
- Citation:
- DSC National Properties, LLC v. Johnson (In re Johnson), No. UT-11-105 (B.A.P. 10th Cir. Aug. 15, 2012).
- Tag(s):
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- Ruling:
- B.A.P. held that bankruptcy court applied the wrong legal standard when determining "intent to deceive" which requires that debtor act with the subjective intent to deceive the creditor in the context of 523(a)(2)(A), BAP reversed finding that debtor was negligent and his state of mind did not cross over to reckless disregard for the truth
- Procedural context:
- Appeal from bankruptcy court for the District of Utah judgment in favor of creditor excepting debt from discharge under 11 U.S.C. 523(a)(2)(A), reviewed de novo
- Facts:
- Johnson pledged water rights as collateral to secure a loan from DSC. In determining ownership of the water rights, Johnson relied upon a report from the website of State of Utah Division of Water and professionals that provided the report. Johnson did not independently verify his ownership from his own records or from county land records. DSC discovered during a title search after obtaining relief from stay that Johnson did not own the water rights which he pledged as collateral.
- Judge(s):
- Brown, Rasure, and Somers, Bankruptcy Judges
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