Upon trustee's complaint to revoke debtor's discharge pursuant to 11 U.S.C. § 727(d)(1), the Court found that the debtor obtained his discharge through fraud by falsifying his schedules and statement of financial affairs so as to hide his interest in certain vehicles and land. Dupwe v. Massey ( In re Massey), 2007WL 1173630 (Bankr. E.D. Ark. 2007).
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Opinions
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Audrey R. Evans
Court found that Debtor proved by clear and convincing evidence that she had an oral contract to purchase real property, had possession of such property, had paid the bulk of the purchase price for the property, and had made improvements to the property such that the oral contract to purchase the property was enforceable under the part-performance exception to the statute of frauds. As such, Court found that Debtor had an equitable interest in the Property under Arkansas law when she filed bankruptcy, and that her rights to enforce that interest have not been conclusively cut off by either the state tax sale of the property or a subsequent quiet title action in State Court. Court granted relief from the automatic stay to both parties to allow all issues regarding the legitimacy of the tax sale and the quiet title action to proceed in State Court. In re Paro,362 B.R. 419 (Bankr. E.D. Ark. 2007).
Court held that a debt owed by business partners is nondischargeable under 11 U.S.C. § 523(a)(2)(A) where debtor knew, or should have known, of fraud. On a motion for summary judgment against joint debtors, the Court granted summary judgment against a debtor that knew of a forged guaranty prior to the partnership incurring indebtedness. However the Court denied summary judgment against his partner, and wife, where there was no evidence that the wife knew, or should have known, of the forgery. Helena Chemical Company v. Simmons (In re Simmons), 364 B.R. 673 (Bankr. E.D. Ark. 2007).
Court held that a debt owed by Debtors is nondischargeable as a debt for a willful and malicious injury under 11 U.S.C. § 523(a)(6) where Debtors were found liable to Plaintiff in a Federal District Court jury trial for sexual harassment and retaliation. Court applied collateral estoppel to the jury’s verdict and awarded summary judgment in favor of Plaintiff; in doing so, the Court determined that the District Court jury necessarily and implicitly found that Debtors acted with the intent to injure Plaintiff, and with the knowledge that their actions were substantially certain to harm Plaintiff. Sells v.Porter (In re Porter), 363 B.R. 78 (Bankr. E.D. Ark. 2007). Affirmed on appeal to the 8th Circuit BAP. See Sells v. Porter (In re Porter), 375 B.R. 822 (8th Cir. B.A.P. 2007). Affirmed on appeal to 8th Circuit. See Sells v. Porter (In re Porter), 539 F.3d. 889 (8th Cir. 2008).
Memorandum opinion entered January 26, 2007; oral ruling issued January 24, 2005. Bank sought to have its debt excepted from Debtors' discharge under sec. 523(a)(2)(B). Court granted Debtors' discharge despite a finding that Mr. Harris presented materially false written statements to the bank because the bank failed to prove that it reasonably relied on such statements. Twin City Bank v. Michael and Lucinda Harris (In re Harris) ,360 B.R. 267(Bankr. E.D. Ark. 2007).
Court found that Debtor-contractor committed defalcation while acting in a fiduciary capacity by spending bonded job receipts on job costs for which the surety was not liable. Court held that any use of the trust res (i.e., bonded job receipts) to cover the contractor’s own expenses, whether that be the cost of using his own equipment, the cost of maintaining full-time employees, or the contractor’s general overhead expenses was a breach of fiduciary duty. International Fidelity Insurance Co. v. Emery Joseph Fox (In re Fox),357 B.R. 770 (Bankr. E.D. Ark. 2006).
Judge Richard D. Taylor
The court sustained the trustee's objection to the debtor's claim that inherited annuities were exempt under s. 522(d)(10)(E). The annuities did not replace an income stream upon which the debtor relied prior to his grandmother's death; therefore, the payments were not "on account of" the death of the grandmother
A mortgage follows the originally collateralized debt until that debt is satisfied. In the absence of an express understanding of the parties through a future advance, all indebtedness, or cross collateralization clause, the original mortgage does not extend to other or additional indebtedness.
Chapter 13 debtors may not discharge post-petition debts by amending their schedules to include a post-petition creditor who has not filed and will not file a proof of claim under s. 1305.