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10-2757 In re Davis

By: WISCONSIN LAW JOURNAL STAFF//March 14, 2011//

10-2757 In re Davis

By: WISCONSIN LAW JOURNAL STAFF//March 14, 2011//

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Bankruptcy
Discharge; fraud

A judgment pursuant to a state’s home improvement act can be discharged in bankruptcy.

“At bottom, this case involves a miscommunication, not fraud. Reeves and Davis had different understandings of what was included in the contract. The state court found Reeves’s understanding to be the correct one. But only if Davis in fact shared her understanding of the contract, and intended not to see it through, did Davis commit fraud. As noted above, we conclude that the bankruptcy court’s finding that Davis did not share Reeves’s view that the contract called for a porch was not clearly erroneous.”

Affirmed.

10-2757 In re Davis

Appeal from the United States District Court for the Southern District of Indiana, Magnus-Stinson, J., Flaum, J.

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