Young, Matter of, No. 93-7045
| Court | United States Courts of Appeals. United States Court of Appeals (5th Circuit) |
| Writing for the Court | Before POLITZ, Chief Judge, DAVIS and JONES; POLITZ |
| Citation | 995 F.2d 547 |
| Parties | Bankr. L. Rep. P 75,333 In the Matter of James S. YOUNG, Debtor. James S. YOUNG, Appellant, v. NATIONAL UNION FIRE INSURANCE CO. OF PITTSBURGH, PA., Appellee. Summary Calendar. |
| Docket Number | No. 93-7045 |
| Decision Date | 29 June 1993 |
Page 547
James S. YOUNG, Appellant,
v.
NATIONAL UNION FIRE INSURANCE CO. OF PITTSBURGH, PA., Appellee.
Summary Calendar.
Fifth Circuit.
Page 548
Richard L. Fuqua, II, Fuqua, Keim & Maun, Houston, TX, for appellant.
R. Scott Williams, Williams & Tinkham, Houston, TX, for appellee.
Appeal from the United States District Court for the Southern District of Texas.
Before POLITZ, Chief Judge, DAVIS and JONES, Circuit Judges.
POLITZ, Chief Judge:
James S. Young appeals the district court affirmance of the bankruptcy court's ruling that his debt to National Union Fire Insurance Co. of Pittsburgh, Pa. was nondischargeable. National Union cross-appeals the vacating and remand of an award of attorney's fees. We affirm in part and reverse in part.
Background
Young's indebtedness to National Union arises from his investment in a Texas limited partnership known as Emerald Park Apartments, Ltd. (the "Partnership"). To purchase his interest, Young executed a promissory note to the Partnership in the principal amount of $92,500. To secure payment of their notes Young and other Partnership investors applied to National Union for a financial guarantee bond.
National Union required Young to execute the following documents: an "Investor Application--Financial Guarantee Bond for Limited Partnerships," an "Indemnification and Pledge Agreement," and a supplemental application which stated that there had been no material adverse change in his financial condition and that the financial information previously submitted remained true and correct. Young attached a financial statement to his application. On the strength of this data, National Union issued the requested bond.
Young defaulted on the note. National Union paid the defaulted note and looked to Young for indemnity, securing a state court judgment against him. Young filed for bankruptcy.
National Union asked the bankruptcy court for an order that Young's debt was nondischargeable under 11 U.S.C. § 523(a)(2)(B) because it was based on a materially false written statement of Young's financial condition. Following a trial, the bankruptcy court found the debt nondischargeable and awarded National Union $6,125 in attorney's fees. Young appealed to the district court, challenging the nondischargeability determination and the bankruptcy court's factual conclusions that he had made intentional misrepresentations and that National Union reasonably had relied upon them. He also appealed the award of attorney's fees. The district court affirmed the nondischargeability and vacated and remanded for additional findings on the attorney's fees. Young and National Union appeal the district court's judgment.
Analysis
Standard of Review
A bankruptcy court's findings of fact are subject to the clearly erroneous standard of review and will be reversed only if, considering all the evidence, we are left with the definite and firm conviction that a mistake has been made. 1 Strict application of this standard is particularly appropriate when the district court has affirmed the bankruptcy court's findings. 2 We are particularly mindful of "the opportunity of the bankruptcy court to judge the credibility of the witnesses." 3 Conclusions of law, of course, are reviewed de novo. 4
Nondischargeability
A debt may be nondischargeable in bankruptcy under 11 U.S.C. § 523(a)(2)(B):
(2) ... to the extent obtained by--
Page 549
(B) use of a statement in writing--
(i) that is materially false;
(ii) respecting the debtor's or an insider's financial condition;
(iii) on which the creditor to whom the debtor is liable for such money, property, services, or credit reasonably relied; and
(iv) that the debtor caused to be made or published with intent to deceive[.]
The burden is on the creditor to prove, by a preponderance of the evidence, that the debt is nondischargeable. 5
Admitting that much of the financial information submitted to National Union was false, Young contends that he did not make those false representations. He testified that he filled out an application and submitted it to the Partnership, but someone else substituted false information in the application which was submitted to National Union. 6 He also contends that, although it is in his handwriting, he did not give the Partnership the financial statement included with the application; he claims a complete lack of knowledge...
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Roth v. Mims, No. Civ.A.3:00-CV-04470-L.
...is "particularly mindful of `the opportunity of the bankruptcy judge to determine the credibility of the witnesses.'" Matter of Young, 995 F.2d 547, 548 (5th Cir.1993)(quoting Rule III. Analysis A. Failure to Designate Issues As a preliminary matter, Mims contends that Roth waived the follo......
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Texas General Petroleum Corp., Matter of, No. 93-2762
...We review findings of fact for clear error and legal conclusions de novo. Young v. National Union Fire Ins. Co., (In re Young), 995 F.2d 547, 548 (5th Cir.1993). When the district court has affirmed the bankruptcy court's findings of fact, our review for clear error is strict. I. Standing M......
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In re Bradley, No. 05-51626.
...of the opportunity of the bankruptcy court to judge the credibility of the witnesses." Young v. Nat'l Union Fire Ins. Co. (In re Young), 995 F.2d 547, 548 (5th Cir.1993) (internal quotations and citations omitted). Moreover, when the bankruptcy court's weighing of the evidence is plausible ......
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Heritage Bank v. McCracken (In re McCracken), CASE NO: 17–80084
...Cir. 2001). A debtor's intent to deceive may be inferred from his use of a false financial statement to obtain credit. Matter of Young , 995 F.2d 547, 549 (5th Cir. 1993).McCracken has not admitted that he knowingly caused his financial statements to be false. Nonetheless, evidence exists f......
-
Roth v. Mims, No. Civ.A.3:00-CV-04470-L.
...is "particularly mindful of `the opportunity of the bankruptcy judge to determine the credibility of the witnesses.'" Matter of Young, 995 F.2d 547, 548 (5th Cir.1993)(quoting Rule III. Analysis A. Failure to Designate Issues As a preliminary matter, Mims contends that Roth waived the follo......
-
Texas General Petroleum Corp., Matter of, No. 93-2762
...We review findings of fact for clear error and legal conclusions de novo. Young v. National Union Fire Ins. Co., (In re Young), 995 F.2d 547, 548 (5th Cir.1993). When the district court has affirmed the bankruptcy court's findings of fact, our review for clear error is strict. I. Standing M......
-
In re Bradley, No. 05-51626.
...of the opportunity of the bankruptcy court to judge the credibility of the witnesses." Young v. Nat'l Union Fire Ins. Co. (In re Young), 995 F.2d 547, 548 (5th Cir.1993) (internal quotations and citations omitted). Moreover, when the bankruptcy court's weighing of the evidence is plausible ......
-
Heritage Bank v. McCracken (In re McCracken), CASE NO: 17–80084
...Cir. 2001). A debtor's intent to deceive may be inferred from his use of a false financial statement to obtain credit. Matter of Young , 995 F.2d 547, 549 (5th Cir. 1993).McCracken has not admitted that he knowingly caused his financial statements to be false. Nonetheless, evidence exists f......