In Re: Sateesh Apte, Debtor. Sateesh Apte v. Romesh Japra, M.D., F.A.C.C., Inc., a California Corporation
Opinion
Opinion
Thompson, J.
Dr. Sateesh Apte, a Chapter 7 debtor, appeals the Bankruptcy Appellate Panel’s (BAP) decision holding Apte’s debt to Dr. Romesh Japra to be nondischargeable under 11 U.S.C. § 523 (a)(2)(A) because it was in curred by fraud. The BAP’s decision reversed the bankruptcy court’s decision that Japra’s reliance on Apte’s misrepresentations was not justifiable.
We have jurisdiction pursuant to 28 U.S.C. § 158 (d), and we affirm the BAP.
FACTS
One of Apte’s corporations, Apte Group, Inc., leased an office building in Pleasanton, California, from Rosewood Associates. Apte’s intention was to sublet the space to other doctors, but he could not secure subtenants. Before long, Apte was $1.3 million behind in his lease payments to Rosewood. Rosewood filed an unlawful detainer action which led to negotiations and restructuring of the lease payments.
A couple of months after Rosewood filed its unlawful detainer action against Apte, Ja-pra approached Apte about subleasing office space in the Pleasanton building. Japra did not know that Apte was in default on the master lease, or that Rosewood had filed an unlawful detainer action. Apte did not disclose these facts, nor did he tell Japra when…