Javehery v. Javeheri-Leitner (In re Javehery)
- Summarized by Lars Fuller , BakerHostetler
- 8 years 11 months ago
- Case Type:
- Consumer
- Case Status:
- Affirmed
- Citation:
- BAP No. CC-16-1195-CTaF (9th Circuit, Mar 14,2017) Not Published
- Tag(s):
-
- Ruling:
- BAP for 9th Cir. affirmed ruling of bankruptcy court (C.D. Cal.) granting summary judgment to creditor sisters on 523 claims against debtor brother based on issue preclusion from state court judgment. State court findings of fraud and willfulness satisfied elements of bankruptcy claims. Debtor's post-summary judgment appeal of amended judgment correcting clerical error in underlying judgment did not bar issue preclusion.
- Procedural context:
- Bankruptcy court entered summary judgment in favor of creditors on 523(a) claim. Debtor defendant appealed to BAP for 9th Circuit.
- Facts:
- "This case arises out of treachery practiced over years by a brother against his two younger sisters." The siblings were members of a "conservative and male-dominated Jewish Iranian family[,]" in which the eldest male was "the most respected and dominating member of the family." Guided by les than noble motives, the brother convinced his sisters to turn over antiques, jewelry, and money to him for safekeeping and investment, and which he promised to return on request. Brother than squandered the assets. Sisters sued brother in state court, and after years of bitter litigation, the state court found in their favor. The state court also found that the brother had waged a systematic campaign of fraud against his sisters and long planned to claim ownership of the fruits of their difficult labor. State court also found that he took every possible step to ensure their financial ruin. State court made detailed findings of brother's fraudulent efforts and intent. The state court found brother liable for ten different common law causes of action, including fraud and conversion, and awarded sisters' compensatory damages of $500,000 and punitive damages of $350,000. The brother filed bankruptcy. Sisters commenced dischargeability adversary under 523(a)(2) and (a)(6), and moved for summary judgment based on issue preclusion.
- Judge(s):
- Clement, Taylor, Faris
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