Reshetar Systems, Inc. v. Thompson (In re Thompson)
- Citation:
- No. 11-6008 (B.A.P. 8th Cir. October 4, 2011)
- Tag(s):
-
- Ruling:
- Where the Bankruptcy Court hears an adversary claim brought through §523 and; no fiduciary relationship exists between Debtor and Creditor, which in bankruptcy requires express or technical trust or malfeasance of the directors and officers at the detriment of creditors; no embezzlement is established, when Creditor never established property rights over the Debtor's liquid assets; and no larceny is shown, where Debtor's possession of their own liquid assets was originally lawful; the discharge of such debts should be granted.
- Procedural context:
- The Debtor filed for relief under Chapter 7 of the bankruptcy code. Appellant (Creditor) timely filed an adversary complaint under 11 U.S.C. § 523(a)(2)(A)(4) and (6). The bankruptcy court entered a judgment in favor of the debtor. On appeal the United States Bankruptcy Appeal Panel confirmed the lower court's decision
- Facts:
- Debtor contracted with Appellant (Creditor) to build a restaurant. Creditor finished the work in a timely matter, but Debtor did not pay Creditor. Creditor sued for the amount owed on the job and attorneys fees. The parties entered a settlement agreement and Debtor executed a confession of judgment. Debtor. Five years thereafter Debtor filed for Chapter 7 bankruptcy.
- Judge(s):
- SCHERMER, VENTERS, and NAIL
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