16 B 28526, 16 A 00624
Plaintiff Old Republic National Title Insurance Company (“Old Republic”) filed an adversary complaint against debtor Fares Fakhuri (“Fakhuri”), seeking a determination that a debt owed to it by Fakhuri by virtue of a state court judgment was not dischargeable pursuant to §§ 523(a)(2)(A) and (a)(2)(B).  Old Republic subsequently filed a motion for summary judgment on both counts of its complaint.  No material facts were in dispute.  Old Republic contended that the state court made findings that Fakhuri committed fraud and that Fakhuri falsely represented that the title to his property was clear, while concealing the fact that there was a lien on the property.  Fakhuri failed to contest these arguments.  The Court found that the state court’s default judgment was not preclusive as it made no findings of fact, but that Old Republic established that Fakhuri made false representations in connection with the title to the property within the meaning of § 523(a)(2)(A).  As §§ 523(a)(2)(A) and (a)(2)(B) are mutually exclusive causes of action, judgment could not also be granted as to § 523(a)(2)(B).  Accordingly, the Court granted Old Republic’s motion as to the § 523(a)(2)(A) count, entered judgment on that count in its favor, and dismissed the § 523(a)(2)(B) count.