Kraus Anderson Capital, Inc v. Bradley (In re Bradley)

Summarized by Laura Bartell , Wayne State University Law School
11 years 2 months ago

Citation:

No. 14-3401 (6th Cir. Dec. 10, 2014)

Tag(s):

Ruling:

Order of Bankruptcy Appellate Panel reversing bankruptcy court order holding certain debts of chapter 7 debtor were not excepted from discharge under section 523(a)(2)(A) and (a)(6) and remanding for determination of damages was not a final judgment and therefore the Sixth Circuit lacked jurisdiction over the appeal.

Procedural context:

Dismissed appeal from Bankruptcy Appellate Panel in chapter 7 case for lack of jurisdiction because BAP decision was not final.

Facts:

Before filing for chapter 7 bankruptcy, chapter 7 debtor sold certain equipment covered by plaintiff's security interest without remitting the proceeds to plaintiff. The parties agreed to amend the loan agreement to modify the terms, but plaintiff sold additional pieces of equipment without remitting the proceeds, and then lied about his actions to plaintiff. When debtor filed for chapter 7 bankruptcy, plaintiff sought a determination that its debt was excepted from discharge under sections 523(a)(2)(A), (a)(4) and (a)(6). The bankruptcy court ruled in favor of the debtor, and the plaintiff appealed to the Bankruptcy Appellate Panel. The BAP affirmed with respect to 523(a)(4), but reversed with respect to the other two bases for exception from discharge and remanded for a determination of damages. Debtor appealed to the Sixth Circuit and the Sixth Circuit dismissed for lack of jurisdiction.

Judge(s):

Batchelder and Rogers, Circuit Judges, and Beckwith, Senior District Judge sitting by designation

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