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6500 Cherrywood Ln - Greenbelt, MD 20770 - Main Tel: 301-344-8018 map
101 W Lombard St Room 8530 - Baltimore, MD 21201 - Main Tel: 410-962-2688

Plaintiff filed a complaint for nondischargeability under Section 523(a)(2)(A) for a mortgage debt incurred by Debtors years before, asserting that Debtors misrepresented their ownership of the real property that secured the loan. The results of Plaintiff's pre-filing investigation established Debtors did in fact own the real property at the time the debt was incurred. Debtors' filed a motion to dismiss and Plaintiff responded with its own motion to dismiss the Adversary Proceeding. After Debtors received their discharge, they filed a motion for award of attorney's fees under Section 523(d), contending that Plaintiff’s position in bringing the Adversary Proceeding was not substantially justified. Finding that Plaintiff knew or should have known the complaint lacked substantial justification before it was filed and that despite Plaintiff’s subsequent dismissal, the case therefore should never have been filed, the Court granted summary judgment for Debtors and awarded attorney’s fees.

Robert A. Gordon