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Bankruptcy: Vicarious Liability – Fraud
Geri Dreiling//July 19, 2012
Where the bankruptcy court judge concluded that a debt was non dischargeable because the debtor was vicariously liable for the fraud committed by his business partner under Missouri law, the evidence supported the finding of a partnership because the debtor admitted in his deposition testimony the facts outlined in the debtor’s own state court pleadings in a suit against the former partner that claimed a partnership agreement existed.
Judgment is affirmed.
Reuter v. Cutcliff, et al. (MLW No. 63906/Case No. 11-1339 – 16 pages) (U.S. Court of Appeals, 8th Circuit, Gruender, J.) (Smith, J. – concurring in part, dissenting in part) Appealed from U.S. Bankruptcy Appellate Panel. (James F.B. Daniels, Kansas City, Missouri, for appellant) (David Gregory Brown, Columbia, Missouri, for appellee).
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