Adam Monaco v. TAG Investments, Limited

EDITH H. JONES, Circuit Judge:

This appeal arises out of a construction contract gone awry and subsequently complicated by bankruptcy. The district court opinion held that Monaco individually owes TAG Investments, Ltd. (“TAG”) $171,942.03, a nondischargeable debt under bankruptcy law (11 U.S.C. § 523(a)(4)) arising from the Texas Construction Trust Fund Act (“CTFA”), Tex. Prop. Code Ann. § 162.001. Monaco appeals on several bases, most notably for our purposes relying on the affirmative defense built into the CTFA (§ 162.031(b)). Based on that defense, we reverse and remand with directions to…