Firm Successfully Defends $412K Verdict
Weitz Morgan successfully defended a $412,000 verdict it had obtained in an adversary proceeding in 2015. The trial court held a debtor responsible for fraud in connection with the sale of a Pizza Patron franchise and awarded the claimant $412,000 in damages and attorney’s fees. The debtor appealed to the U.S. District Court for the Southern District of Texas, and Judge Ricardo Hinojosa affirmed every aspect of the verdict. The debtor had raised “Stern” issues arguing that the bankruptcy judge could not conditionally render a money judgment. The court agreed with the appellee/claimant that the discharge was a core proceeding and that the bankruptcy judge had acted within his conditional parameters. Judge Hinojosa also affirmed all of the factual findings of the court as to the debtor’s liability for fraud.