Now Updating

Summarizing by Bradley Pearce

Wendy Adelson v. Ocwen Loan Servicing, LLC

Summarizing by Amir Shachmurove

Tripodi, Jr. v. Welch, et al.

Tripodi, Jr. v. Welch, et al., Case No. 14-4084 (7th Cir. January 8, 2016). Published.
A default judgment against a person for violating state or federal securities laws will be given preclusive effect, in contrast to certain default judgments under § 523(a)(2), and held to be non-dischargeable under 11 U.S.C. § 523(a)(19).
Procedural context:
Appeal from the US District Court for the District of Utah which held that the default judgment against appellant relating to violations of securities laws was non-dischargeable under § 523(a)(19). The 10th Circuit affirmed reviewing the lower court’s ruling de novo. The District Court also denied appellant’s motion for judgment on the pleadings which was brought four years after the default judgment. The 10th Circuit reviewed this ruling for abuse of discretion and affirmed.
Appellant raised money for a high end real estate project in Wasatch County, Utah through a third party entity that solicited investors including appellee. Promissory notes were issued to the entity and assigned to the appellee. The appellee’s notes, as well as all other investors’ notes, were secured by two identical deeds of trust. The investment was structured for broad distribution and not only to sophisticated investors. The project failed and appellant defaulted on the notes to appellee who sued and obtained default judgment. Subsequently, appellant filed bankruptcy and appellee sought and obtained relief from stay to have the District Court enter final judgment against appellant including finding that the debt was non-dischargeable.
Kelly, McKay, Phillips (Kelly)

ABI Membership is required to access the full summary. Please Sign In using your ABI Member credentials. Not a Member yet? Join ABI now - it is absolutely worth it!

About us in numbers

3495 in the system

3374 Summarized

8 Being Processed