Now Updating
Rodriguez v. FDIC (In re United Western Bancorp, Inc.)

Summarizing by Bradley Pearce

Whitcomb v. Smith

Case Type:
Consumer
Case Status:
Affirmed
Citation:
16-004 (1st Circuit, Sep 06,2017) Published
Tag(s):
Ruling:
AFFIRMED the Bankruptcy Court for the District of Massachusetts holding that the state court judgment debt owed by the debtor, Mary L. Smith to Kathleen and Scott Whitcomb (the debtor's daughter and son-in-law) was excepted from discharge and granting relief from the automatic stay for the Whitcombs to enforce the judgment.
Procedural context:
The debtor, Mary L, Smith, appealed from the decision of the Bankruptcy Court for the District of Massachusetts finding that that Ms. Smith's obligations to the Whitcombs were nondischargable under 523(a)(2)(A) and 523(a)(6).
Facts:
In 1999, the debtor and her late-husband proposed that the Whitcombs would move onto their property. The Debtor and her late-husband planned to build an in-law apartment on the property where they would live. The parties memorialized the agreement in a contract, which was not executed by the Smiths or the Whitcombs. The Agreement provided that the title would be transferred to the Whitcombs and the Whitcombs would pay for the addition. In 2000, construction was completed and the Whitcombs moved into the property and began paying the mortgage. Due to family issues, the relationship between the Whitcombs and the Smiths soured. During this period, the Smiths took out home equity loans increasing the mortgage from $120,000 to $410,000. In 2009, the Smiths notified the Whitcombs they would have to vacate the property. The Whitcombs sued the Smiths in state court to enforce their rights under the agreement. The Whitcombs obtained a judgment in their favor in state court. The judgment provided that Ms. Smith would transfer title to the Whitcombs and would pay rent for her apartment. Ms. Smith filed for chapter 7 relief three months later. The Whitcombs brought an adversary proceeding against Ms. Smith seeking an exception to discharge for the debt owed to them under 523(a)(6). The Bankruptcy Court concluded that Ms. Smith's obligations to the Whitcombs were nondischargable under 523(a)(2)(A) and 523(a)(6).
Judge(s):
Deasy, Cary, Fagone

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