In Re SAMUEL E. FANDAY

Coe v. Fanday (In Re Fanday)

Good Law
538 F. App'x 748
United States Court of Appeals for the Ninth CircuitAugust 16, 201312-60017California709 words

Opinion

Opinion

MEMORANDUM

Barry Coe appeals the decision of the Ninth Circuit Bankruptcy Appellate Panel (“BAP”) affirming the bankruptcy court’s judgment in favor of Samuel Fanday on Coe’s claims of nondischargeability under 11 U.S.C. § 623 and 11 U.S.C. § 727 . We have jurisdiction under 28 U.S.C- § 158(d). Because the parties are familiar with the history of the case, we need not recount it here. We affirm.

I

The bankruptcy court did not err in rejecting Coe’s claim that the default judgment he secured against Fanday was non-dischargeable under 11 U.S.C. § 523 (a)(6).

There was no clear error in the bankruptcy court’s finding that the break-up of Pellu Systems, Inc. was the result of poor planning and undercapitalization rather than a malicious intent on the part of Fanday. See Brawders v. Cnty. of Ventura (In re Brawders), 508 F.3d 856 , 859 n. 1 (9th Cir.2007) (reviewing the bankruptcy court’s factual findings for clear error). Coe presented no facts in support of a finding that Fanday’s decision to halt participation in the business was motivated by a subjective intent to injure him. See Carrillo v. Su (In re Su), 290 F.3d 1140, 1142 (9th Cir.2002) (“[Section] 523(a)(6)’s willful…

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