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Custom Heating & Air Inc. v. Andress (In re Andress)

Custom Heating & Air Inc. v. Andress (In re Andress)

Ruling
Contractual penalty for debtor's violation of non-compete covenant was nondischargeable.
Procedural posture

Plaintiff creditor filed an adversary proceeding against defendant debtor seeking a determination that its debt was nondischargeable pursuant to 11 U.S.C. § 523. The district court remanded the matter and instructed the bankruptcy court to reassess the damages attributable to loss of goodwill by the creditor as a result of the debtor's willful and malicious conduct.

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opinion summary, case decided on August 17, 2007 , LexisNexis #0907-129