Clay

Action on promissory note made by defendant in favor of plaintiff on November 1, 1957, in the sum of $11,000, payable 31 days after date, upon which a balance of $8,000 with interest from December 29, 1957, was due at the time of suit filed on January 26, 1960. The complaint alleged that the loan was induced by a fraudulent financial statement of August 30, 1957, showing assets of $160,500 and a net worth of $123,000. Defendant relied upon a discharge in bankruptcy granted him on August 14,1958.

The trial centered upon the question whether the debt was thus discharged. A joint pretrial statement of counsel contains this: “C. ULTIMATE ISSUE REMAINING IN DISPUTE. The issue remaining in dispute is whether the obligation which is the subject of this action was one which, by law, is excepted from the operation of a discharge in bankruptcy.” The trial court held with plaintiff and rendered judgment in its favor, expressly finding, substantially in the language of the complaint, that: “10. Said financial statement was executed on August 30, 1957, by defendant, Wesley B. Clay, and directed and delivered to plaintiff, California Bank, on the same date. 11. Defendant represented in said…