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206020P.pdf 04/02/2021 Lund-Ross Constructors, Inc. v. Jay Buchanan
U.S. Court of Appeals Case No: 20-6020
U.S. Bankruptcy Court for the District of Nebraska - Omaha
[PUBLISHED] [Chief Judge Nail, Author, with Schermer and Shodeen,
Bankruptcy Judges]
Bankruptcy Appellate Panel - Dischargeability. Lund-Ross Constructors,
Inc. was general contractor and hired Signature Electric, owned by
Debtors, to perform or subcontract work. Signature Electric untruthfully
told Lund-Ross that all subcontractors had been fully paid, causing
substantial liens placed on Lund-Ross projects. Lund-Ross filed unsecured
proof of claim, attaching lien statements and unpaid bills of Signature
Electric, not Debtors. In its nondischargeability action, Lund-Ross relied
on false statements, not piercing the corporate veil, to see relief. The
bankruptcy court granted summary judgment to debtors because debtors did
not personally owe debt to Lund-Ross. Bankruptcy court did not err in
concluding Lund-Ross was not owed a debt by debtors, Lund-Ross had not
plead the corporate veil should be pierced and did not allege facts that
debtors used Signature Electric to commit fraud. Judge Shodeen dissents.