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Mar 15, 2015

Brutzkus Gubner Prevails at Trial and Obtains Judgment Denying the Discharge of Debt

Richard Burstein and Michael Davis, in his first trial as first chair, successfully represented a client in a non-dischargeability action before Judge Peter Carroll. Richard and Michael prevailed after a bench trial and obtained a judgment denying the discharge of the client/creditor’s six-figure debt. The Court concluded that the debt was incurred as a result of certain material misrepresentations by one of the joint debtors to the creditor/client (no claims were prosecuted against the other joint debtor). In early 2010, the debtor was seeking to raise capital for a new business venture, which was to be formed for the purpose of buying distressed real properties, improving them, and selling them at a profit. Brutzkus Gubner’s client was the primary and initial investor in this venture. The venture ultimately failed and the debtor filed a voluntary bankruptcy petition in late 2011, seeking to discharge the creditor’s/client’s debt. Judge Carroll ruled in favor of Brutzkus Gubner’s client and entered a judgment declaring such debt nondischargeable under 11 U.S.C. §§ 523(a)(2)(A) and (a)(6). The Court also provided in the judgment that the client is entitled to an award of attorneys’ fees, and Richard and Michael will seek the same in post-judgment proceedings.

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