Lawrence Tractor Co. v. Gregory

CHOY, Circuit Judge:

This is an appeal from a judgment of the bankruptcy court, affirmed by the bankruptcy appellate panel, 19 B.R. 668, in an action to determine the dischargeability of a debt.

The bankruptcy court held that a state court money judgment, won by Lawrence Tractor Co. (Lawrence) in an action against former employee Joseph Gregory for embezzlement, was dischargeable in Gregory’s Chapter 13 bankruptcy proceeding although Gregory’s confirmed plan provided for zero payment on the claim.

We conclude that (1) Lawrence’s failure to object to confirmation of the plan or to appeal from the…