Judgment Factors, LLC v. Athol Packer

Judgment Factor filed an adversary proceeding to prevent the entry of a Chapter 7 discharge order for defendant. The bankruptcy court granted summary judgment to defendant, holding that he did not act in any way that merited the denial of a discharge under 11 U.S.C. 727(a) and dismissing alter ego claims. The district court affirmed. The court concluded that Judgment Factors failed to obtain leave from the bankruptcy court to pursue alter ego and reverse veil piercing claims on behalf of the estate, so it may not pursue these claims. The court also concluded that Judgment Factors failed establish that defendant concealed or transferred any assets, destroyed or failed to keep financial records, or made any false oaths. Therefore, the court agreed with the lower courts that defendant did not act in any way meriting denial of a discharge under section 727(a). Accordingly, the court affirmed the judgment. View "Judgment Factors, LLC v. Athol Packer" on Justia Law