13 B 09806, 13 A 00917
Jacob Thazhathuputhenpurac (the “Plaintiff”) filed an adversary complaint against former business partner Thomas Abraham (the “Debtor”), seeking a determination that a debt owed to him by the Debtor by virtue of a state court judgment was not dischargeable pursuant to §§ 523(a)(2)(A) and (a)(4) and objecting to the Debtor’s discharge under § 727(a)(3).  Both parties subsequently filed cross-motions for summary judgment, the Plaintiff on the two nondischargeability counts and the Debtor on all three.  No material facts were in dispute.  The Plaintiff argued that the Debtor was precluded from re-litigating the factual issues decided by the state court under the doctrine of collateral estoppel.  The Debtor contended that the elements needed to prevail pursuant to the statute under which the state court complaint had been brought were not identical to those required under §§ 523(a)(2)(A) and (a)(4) and that, thus, collateral estoppel was not applicable.  The Court found that the factual issues sought to be precluded were the same as those that came before the state court for purposes of collateral estoppel and that the state court’s findings of fact established, as a matter of law, all of the elements required for nondischargeability under §§ 523(a)(2)(A) and (a)(4).  Accordingly, the Court granted the Plaintiff’s motion, entered judgment in his favor, and denied the Debtor’s motion.