Chase Manhattan Bank, USA, N.A. v. Deuel (In re Deuel)

MEMORANDUM DECISION1

LAURA S. TAYLOR, Bankruptcy Judge.

In 2004, Chase Manhattan Bank, USA, N.A. (“Chase”) initiated this adversary proceeding. The underlying facts are set out in numerous prior decisions including, most recently, a Ninth Circuit decision decided adversely to Chase. See Chase Manhattan Bank, USA, Inc. v. Taxel (In re Deuel), 594 F.3d 1073 (9th Cir.2010). In briefest summary, Chase extended a loan to debtor Jill Deuel (“Debtor”) and her non-filing, now former spouse, Will Deuel,2 and the Deuels used the loan proceeds, in part, to repay Chase on account of a previous loan. The…