In Re Goldberg

MEMORANDUM OF DECISION AND ORDER

This matter comes before the court on Bank of Alex Brown’s (“Bank”) complaint to determine dischargeability of debt, for violation of trust, and for declaratory relief against Chapter 13 debtor Franklin Goldberg, debtor’s wife, and the Chapter 13 Trustee.

In the pretrial stage of the proceedings, Bank dropped its claim for determination of dischargeability and indicated that it only sought imposition and foreclosure of a constructive trust on Mr. Goldberg’s current residence. Although served, no answers were filed nor appearances made by Mrs. Goldberg or by the Chapter 13 trustee. Bank did not indicate how or whether it wanted to continue to proceed against Mrs. Goldberg or the Chapter 13 trustee, but Bank’s trial presentation and briefs implied that it was proceeding only against Mr. Goldberg.

After trial and submission of briefs, the court took the matter under submission. This memorandum decision and order shall constitute findings of fact, conclusions of law, and judgment as required by Bankruptcy Rule 7052 and Federal Rule of Civil Procedure 52.

FACTS AND BACKGROUND

In February 1987, the Goldbergs entered into a contract with Citation…