Bauer, et al. v. Gilmartin, et al., No. 11-6014 (8th Cir. 2011)
Annotate this CaseIn an action for nondischargeability, creditors appealed from the judgment of the Bankruptcy Court finding that they failed to prove that they were damaged as a result of the fraud allegedly committed by debtor. The court held that the Bankruptcy Court erred in finding that creditors failed to prove that they sustained a loss as a proximate result of debtor's alleged misrepresentations. The court reversed and remanded, concluding that plaintiff offered evidence that they would not have invested any money in the first place, or that they would not have continued to invest funds, had they known of debtor's alleged fraud and that the Bankruptcy Court failed to consider whether Missouri's "out of pocket" measure of damages was applicable.
Court Description: Bankruptcy Appellate Panel. Bankruptcy court erred in finding creditors failed to show they sustained a loss as a proximate result of debtor's alleged misrepresentations since the court failed to consider whether Missouri's "out of pocket" measure of damages was applicable.
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