In In re Barlaam, 2012 WL 3288725 (Bkrtcy.C.D.Cal. 2012), Judge Mund found triable issues of fact regarding a creditor’s position that the bankruptcy debtor’s obligations were non-dischargeable on a $305,000 Rolls-Royce and $100,000 BMW.  The debtor had claimed income in his credit application(s) of $720,000 and $530,000, but, in the bankruptcy proceedings, claimed that he had virtually no income during those years and that he never read the credit applications.  The debtor moved for summary judgment on the Plaintiff creditor’s non-dischargeability claim.

Plaintiff has introduced sufficient evidence of each element of § 523(a)(2)(B) to survive Defendants’ motion for summary judgment. Defendant’s motion for summary judgment is denied. ¶ In fact, Plaintiff has established elements (2) materiality, (3) Defendant’s knowledge of falsity, (4) Defendant’s intent to deceive and (7) any damages to Plaintiff under the Leases proximately resulted from the misrepresentation, beyond any issue of material fact. Plaintiff is granted partial summary adjudication on these issues.  These issues of material fact remain to be determined at trial: 1) Did Defendant actually make the misrepresentation of fact, specifically did he sign the Credit Applications in evidence, (5) whether Plaintiff relied on the misrepresentation, (6) was Plaintiff’s reliance reasonable, and (7) what was the amount, if any, of damages to Plaintiff resulting from the misrepresentation. The remainder of Plaintiff’s motion for summary judgment is denied.