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Hrin v. Hayes - $26,768.46 Fraud Exception to Discharge Under § 523(a)(2)(A)

The United States Bankruptcy Court for the District of Alaska issued a memorandum decision after trial in adversary proceeding 24-90006-GS, finding that debtor Garic Austin Hayes committed fraud under 11 U.S.C. § 523(a)(2)(A) in connection with a construction contract for a single-family residence on Wright's Island in Big Lake, Alaska. The court excepted $26,768.46 from Garic Hayes's bankruptcy discharge — representing fraudulent charges in monthly billing applications and line items from a December 16, 2021 accounting letter. Mae Elizabeth Hayes was found not involved in the fraud and bears no liability. The plaintiffs' claims under § 523(a)(4) and (a)(6) were forfeited or abandoned.

Bauer v. Hayes - Fraud Claims Denied in Bankruptcy

The United States Bankruptcy Court for the District of Alaska ruled in favor of defendants Garic Hayes and Mae Hayes, denying plaintiffs Peter and LeeAnn Bauer's claim under 11 U.S.C. § 523(a)(2)(A) that debts arising from a failed custom home construction project were excepted from discharge as fraudulent inducement. The court found that GHGC intended to perform its contractual obligations when it entered the $190,500 initial deposit contract, and that the Bauers failed to meet their burden of proof regarding additional funds allegedly provided for lumber that was never purchased. The Bauers abandoned their other claims under § 523(a)(4) and (a)(6) at trial.