Weissberger v. Myers
90 A.3d 730
| Pa. Super. Ct. | 2014Background
- Contract in Jan 2006 to construct addition/renovations; Weissbergers designed, Contractors to follow design.
- Contractors allegedly performed substandard work and deviated from plans; by Sep 2006 $40,000 paid, work incomplete, Contractors did not return.
- June 2008 Weissbergers sued for breach, UTPCPL, and fraud; Contractors answered.
- Aug 2010 Myers filed Chapter 7; Weissbergers pursued Adversary Complaint alleging non-dischargeability due to fraud.
- Bankruptcy Court found debt nondischargeable under 11 U.S.C. § 523(a)(2)(A); Weissbergers sought partial SJ arguing res judicata/collateral estoppel.
- Trial court denied motion for partial SJ; Weissbergers sought review; this appeal proceeds as review of denial of partial SJ.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether bankruptcy ruling affected trial court analysis | Weissbergers contend bankruptcy analysis governs SJ. | Myers contends distinct standards apply at state court. | No reversible error; standard discussed but not dispositive. |
| Whether collateral estoppel/res judicata supports SJ on fraud, breach, UTPCPL | Bankruptcy fraud finding precludes relitigation. | Different burdens of proof; estoppel not applicable. | Collateral estoppel not applicable; fraud burden differs; SJ denied. |
| Whether record supports SJ on fraud, breach, UTPCPL | Fraud established; preponderance in bankruptcy translates to state court fraud. | Record lacks clear and convincing fraud showing for state court; heavier burden. | Record does not show no genuine issue of material fact; SJ denied. |
Key Cases Cited
- Balent v. City of Wilkes-Barre, 542 Pa. 555 (Pa. 1995) (collateral estoppel framework; five elements)
- In re Antonious, 358 B.R. 172 (Bkrtcy.E.D.Pa.2006) (dischargeability burden; preponderance standard)
- Pittsburgh Nat. Bank v. Larson, 352 Pa.Super. 250 (Pa. Super. Ct. 1986) (fraud burden is clear and convincing; heavier standard)
- Rue v. K-Mart Corp., 552 Pa. 13 (Pa. 1998) (Restatement §28 considerations; collateral estoppel exceptions)
- In re Stevenson, 40 A.3d 1212 (Pa. 2012) (federal judgments given full effect in state court)
- Atiyeh v. Bear, 690 A.2d 1245 (Pa. Super. Ct. 1997) (application of collateral estoppel to bankruptcy decisions)