James Saccheri v. St. Lawrence Valley Dairy

MEMORANDUM

James Saccheri appeals from the Bankruptcy Appellate Panel’s (“BAP”) judgment affirming the bankruptcy court’s order finding that Saccheri owed the St. Lawrence Valley Dairy (“Dairy”) a nondis-chargeable debt in the amount of $492,006.57. We have jurisdiction under 28 U-S.C. §§ 1291 and 1295. We conduct “an independent review of the bankruptcy court’s decision without deferring to the BAP,” In re Sabban, 600 F.3d 1219, 1221 (9th Cir.2010) (internal quotation marks omitted), applying the same standard of review that the BAP applied to the bankruptcy court’s ruling. In re Boyajian, 564 F.3d 1088, 1090 (9th Cir.2009). We affirm.

Saccheri first contends that the bankruptcy court clearly erred in finding that the Dairy justifiably relied on Saccheri’s representations concerning the funds he pocketed. Whether the Dairy justifiably relied on Saccheri’s representations is a question of fact reviewed for clear error. In re Deitz, 760 F.3d 1038, 1051 (9th Cir. 2014). In making its determination, the bankruptcy court relied heavily on the live testimony of Saccheri and the Dairy’s other board members. Where the bankruptcy court’s findings are based on the relative credibility of…