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Paton v. Kutner Lynch

Appellate Division of the Supreme Court of New York, First Department
May 23, 1995
215 A.D.2d 301 (N.Y. App. Div. 1995)

Opinion

May 23, 1995

Appeal from the Supreme Court, New York County (Joan Lobis, J.).


As the IAS Court explained, the State court judgment representing the debt in question adjudicated only plaintiff's contract claims. Plaintiff's fraud claim was severed for future adjudication and unlike a contract claim, would not be dischargeable in bankruptcy ( 11 U.S.C. § 523 [a] [2] [A]). Therefore it remains an open question whether plaintiff would have been able to prove such fraud in an adversary proceeding by a preponderance of the evidence (see, Grogan v Garner, 498 U.S. 279, 286 [under Bankruptcy Code]; cf., Simcuski v Saeli, 44 N.Y.2d 442, 452; Orbit Holding Corp. v Anthony Hotel Corp., 121 A.D.2d 311, 314 [clear and convincing evidence standard in State court]), "`but for'" defendants' failure to timely file therefor (Schimenti v Whitman Ransom, 208 A.D.2d 470). We note that a Bankruptcy Court can look behind the judgment and examine evidence beyond the State court record in determining dischargeability (In re Daley, 776 F.2d 834, 838, cert denied sub nom. Daley v Frank, 476 U.S. 1159).

Concur — Rosenberger, J.P., Ellerin, Rubin, Ross and Tom, JJ.


Summaries of

Paton v. Kutner Lynch

Appellate Division of the Supreme Court of New York, First Department
May 23, 1995
215 A.D.2d 301 (N.Y. App. Div. 1995)
Case details for

Paton v. Kutner Lynch

Case Details

Full title:CAROL PATON, Appellant-Respondent, v. KUTNER LYNCH et al.…

Court:Appellate Division of the Supreme Court of New York, First Department

Date published: May 23, 1995

Citations

215 A.D.2d 301 (N.Y. App. Div. 1995)
626 N.Y.S.2d 792