Lund-Ross Constructors, Inc. v. Buchanan, No. 20-6020 (8th Cir. 2021)Annotate this Case
The Eighth Circuit affirmed the bankruptcy court's grant of summary judgment in favor of debtors in an action brought by Lund-Ross, seeking to determine the dischargeability of a debt it alleges debtors owe. The court concluded that Lund-Ross's legal theory for the recovery of a debt from debtors personally and the probative evidence Lund-Ross would offer in support of that theory were absent from the summary judgment record before the bankruptcy court. In this case, there is no dispute Lund-Ross did not plead that the corporate veil should be pierced, and it did not argue the corporate veil should be pierced when contesting debtors' motion for summary judgment; Lund-Ross did not allege specific facts that demonstrate debtors used Signature Electric or D & J Electric to commit fraud, violate a legal duty, or perpetrate a dishonest or unjust act in contravention of the rights of another; and Lund-Ross did not identify any state statute or other nonbankruptcy law that would govern debtors' actions as principals of Signature Electric and create a personal debt to Lund-Ross.
Because Lund-Ross did not first demonstrate for the bankruptcy court how it could establish a personal debt owed by debtors under nonbankruptcy law, the court, like the bankruptcy court, did not reach the issue of whether such a debt would be nondischargeable under 11 U.S.C. 523(a)(2)(A).