Mayamex Inc. v. Martinez (In re Martinez)

MEMORANDUM ON REQUEST FOR DEFAULT JUDGMENT AND ORDER THEREON

Blanca Martinez (“Martinez” or “Debt- or”) filed for relief under Chapter 7 of the Bankruptcy Code on May 30, 1997. The deadline for filing complaints under 11 U.S.C. § 523 (a)(2), (4), and (6) ran on September 2, 1997. Martinez received a discharge of debt on September 18, 1997. The bankruptcy case was closed on September 29,1997.

On November 26, 1997, Mayamex, Inc. and others (“Mayamex”) filed a complaint objecting to discharge of their claims against Martinez pursuant to Section 523(a)(2)(A) on the grounds of fraud. Mayamex seeks lost profits in the amount of $25,000, plus $75,000 in general damages arising out of the alleged fraud, and $500,000 in punitive damages. Mayamex alleges that Martinez fraudulently altered a video contract with the plaintiffs to include television rights which were not part of the original contract and then sold those television rights to a third party without Mayamex’s knowledge or consent.

Mayamex served Martinez with the complaint and an alias summons on January 16, 1998, at the address of record for Martinez contained in the bankruptcy file. The time to file an answer expired on…