Wolfson v. Equine Capital Corp.

BARKETT, Circuit Judge:

Appellant Stephen P. Wolfson (“Wolfson”) appeals from a district court judgment affirming a bankruptcy court’s decision excepting $1,815,805 of Wolfson’s debt from discharge. Because we conclude that the debt was excepted in error, we reverse.

From 1971 to 1990, Wolfson and his brother, Gary, were partners in a horse farm known as the Happy Valley Farm (the “Farm”). In 1987, Equine Capital Corporation (“ECC”) replaced Citibank, N.A., as the Farm’s primary lender, making ten loans to the Farm between 1987 and 1989. For most of these loans, the Farm pledged various…