Bankers Trust Co. v. Lebow

MEMORANDUM AND ORDER

WHITMAN KNAPP, District Judge.

This matter is before us on appeal from Bankruptcy Judge Herzog’s order dismissing without prejudice the. complaint in these two adversary proceedings. Plaintiff Bankers Trust—a creditor of the two bankrupt-defendants—instituted these actions pursuant to Bankruptcy Rule 701(7) for a determination that an alleged contingent liability is a non-dischargeable debt. The facts, insofar as here relevant, are as follows. In April 1970, the bank loaned $200,000 to defendants in their capacity as officers of 1315 Peninsula Boulevard Corp.…