Sacks v. Reader (In Re Reader)

MEMORANDUM OF DECISION

JIM D. PAPPAS, Chief Judge. Background.

This is a dischargeability action. The matter is before the Court for disposition of Plaintiff Sacks’ Motion for Summary Judgment. From the pleadings and record, the following appears.

Years ago, Plaintiffs Robert Sacks and Clive Pusey loaned Defendants money. In November, 1985, Defendants filed for Chapter 11 relief in Utah. The bankruptcy case was converted to a Chapter 7 case in July, 1986 with no plan having been confirmed. The case was thereafter dismissed in August, 1986. Shortly thereafter, Defendants formed a corporation…