Case Summary:
The creditor sought a determination of nondischargeability under 11 U.S.C. § 523(a)(2). The creditor had invested money in the debtor’s real estate venture, essentially a scheme that involved the “flipping” of real property in an attempt to make a profit in the speculative market. On summary judgment, the court found that even if the creditor had loaned money to the debtor in reliance upon a representation that the funds would be used for the specific purpose of purchasing certain properties in Texas, he failed to demonstrate justifiable reliance upon the representation. Even the creditor’s own statements indicated that he was far more interested in the timing of his proffered return on his investment and was not concerned with the specific use of the funds. His personal background and experience in real estate speculation, as well as the facts surrounding the transaction in question, required the conclusion that the plaintiff did not justifiably rely upon any representation by the debtor. Summary judgment in favor of the debtor was granted and the debt was discharged.

Statute/Rule References:
11 U.S.C. § 523(a)(2)(A) -- Nondischargeability - Fraud

Key Terms:
Fraud