In re Baxter (02-40232)
The Court held a trial to determine the dischargeability of debt created by losses that International Fidelity Insurance Company ("Plaintiff") suffered after Raymond Jerry Baxter’s ("Debtor") company went out business and Debtor filed for bankruptcy. After stating that Plaintiff did not meet its burden required by 11 U.S.C. § 523(a)(2)(B), the Court held in favor of Debtor, stating that Plaintiff only proved its own company policy, not the industry norm. However, the Court held in favor of Plaintiff on the 11 U.S.C. § 523(a)(4) allegation, as to jobs performed in New York state, if Plaintiff can prove during the damages stage that Debtor or his company misappropriated funds from the project owner(s). The issue of damages was reserved for a later trial after all job(s) are completed and an accurate accounting of losses can be done.