- BAP No. MW 15-051
- Order dismissing dischargeability adversary proceeding affirmed.
- Procedural context:
- Privatera commenced an adversary proceeding seeing to a determination that a debt owed to her by Curran was non-dischargeable per §523(a)(2)(B). Curran filed a motion to dismiss pursuant to Rule 7012(b)(6), and Privatera sought to add a count under 523(a)(2)(A). The bankruptcy court found that the complaint failed to state a claim and that it could not e amended to do so.
- In November 2007, Privitera made a loan in the amount of $30,000.00 to Curran to support his landscaping business. At the time, Privitera and Curran were in a romantic relationship. In connection with the loan, Privitera’s attorney drafted and the parties executed a written document entitled “Loan Agreement and Promissory Note” (“Loan Agreement”), which consisted of a Loan Agreement, a Promissory Note attached as Exhibit 1.2, and a List of Collateral attached as Exhibit 2.1. In essence, the transaction was not properly documented, and a security agreement was not executed. The bankruptcy court held that the Agreement, Note and List of Collateral did not constitute any false representations or fraud.
- Lamoutte, Deasey (author) and Cary
3491 in the system
5 Being Processed