Deady v. Hanson (In re Hanson)
Jul
13
2010
Ruling
Loan debts were nondischargeable due to debtor contractor's misrepresentations that funds were to be used on a single project.
Procedural posture
Plaintiff, the owner of a construction company, filed a complaint to determine dischargeability, per 11 U.S.C.S. § 523(a)(2)(A) and (a)(4), of debts arising from loans to debtor, a "spec" home builder who was operating through a limited liability company (LLC). One issue was whether the parties had agreed that debtor's use of the funds loaned by plaintiff was limited to one particular project or were available for use at debtor's discretion.
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Court
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