The United States Court of Appeals for the Fifth Circuit issued a favorable ruling for the firm’s client affirming that the bankruptcy court did not err in finding the elements of fraud were met or in rendering a non-dischargeable judgment and that the district court did not err in affirming the bankruptcy court.
The firm’s client sued Appellant for, in relevant part, fraudulent misrepresentation and common law fraud. After Appellant filed for bankruptcy, the suit was removed to bankruptcy court and an adversary proceeding commenced. The firm successfully prevailed in the bankruptcy court on fraudulent misrepresentation and common law fraud and in getting the claimed excepted from discharge. The district court on appeal agreed with the bankruptcy court and affirmed its judgment. An appeal was taken on the issue of whether the bankruptcy court and district court erred.
The Court affirmed the lower courts’ decisions, and Weitz Morgan’s client maintained its $412,500 non-dischargeable judgement.