Local 155 UAW Credit Union v. Zalewski

This is an action for the balance due on a promissory note. Due to illness, defendant had serious financial difficulty and owed several creditors. He applied for a loan from plaintiff and filled out and signed a financial statement. Plaintiff contends the statement was materially false in that it failed to list $3,800 in other debts owed by defendant at the time of the application for the loan, and plaintiff’s agent, in reliance upon the statement, approved the loan. Defendant pleaded that the special affirmative defense of discharge in bankruptcy applied. Plaintiff denied this defense and…