505 B.R. 74
Bankr. N.D. Ga.2014Background
- Carroll filed a chapter 7 petition; Woodman brought an adversary proceeding to determine dischargeability in 2012.
- Plaintiff alleges Defendant made false representations about business matters and encumbrances on real property to induce loans, with reliance and resulting loss.
- Defendant answered in 2012; Plaintiff amended the complaint (2012) and sought to add a §523(a)(6) claim (2013).
- Second Amended Complaint (Sept. 26, 2013) adds claim that Defendant willfully and maliciously devalued collateral securing the loans.
- Defendant filed a Response and Cross Motion (Oct. 2013); Plaintiff replied (Nov. 2013).
- Court found the attached documents unverified and thus inadmissible; the only undisputed facts are the two loans and two deeds to secure debt, plus related assertions about a water-contract misrepresentation.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether §523(a)(2)(A) nondischargeability is proven | Plaintiff contends Defendant made false representations with intent to deceive, triggering justifiable reliance and loss. | Defendant argues no misrepresentation or intent is proven; reliance not shown. | Denied; no undisputed facts showing elements. |
| Whether §523(a)(6) nondischargeability is proven | Plaintiff asserts willful and malicious injury to collateral; intent and malice shown by actions. | Defendant contends lack of proven intent; disputes over facts preclude summary judgment. | Denied; issues of intent require trial; insufficient undisputed facts. |
Key Cases Cited
- In re Bilzerian, 188 B.R. 46 (Bankr.M.D. Fla. 1995) (court may consider admissible documents and infer intent from circumstances)
- In re Montgomery, 489 B.R. 609 (Bankr.N.D. Ga. 2013) (justifiable reliance is subjective in §523(a)(2)(A) analysis)
- In re Walker, 48 F.3d 1161 (11th Cir. 1995) (willful injury requires intentional act intended to cause injury)
- In re Ikner, 883 F.2d 986 (11th Cir. 1989) (malice can be implied or constructive; not require specific intent to harm)
- In re Rebhan, 842 F.2d 1257 (11th Cir. 1988) (reckless disregard can satisfy malice under §523(a)(6))
- In re Homer, 168 B.R. 790 (Bankr.N.D. Ga. 1994) (willful injury requires intentional act; similar standard for §523(a)(6))
- In re Callaway, 2006 WL 6589022 (Bankr.N.D. Ga. 2006) (discussed in context of §523(a)(2)(A) elements (unreported))
- Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (U.S. 1986) (summary judgment standard: no genuine issue of material fact)