Ford v. Warren

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UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
In re
RICHARD E. WARREN, JR., No. 07-11283
Debtor(s).
______________________________________/
JOHN J. FORD III, et al.,
Plaintiff(s),
v. A.P. No. 08-1014
RICHARD E. WARREN, JR.,
Defendant(s).
_______________________________________/
Memorandum on Motion for Summary Judgment
_________________
Before debtor Richard Warren filed his Chapter 7 petition, the state court entered a default judgment
against him for over $4 million. The judgment recites that Warren, a foreclosure consultant, obtained a deed
from plaintiff John Ford “in violation of California Civil Code Section 2945(b)(2) and by fraud.” This
adversary proceeding seeks to declare that the judgment is nondischargeable pursuant to § 523(a)(2) of the
Bankruptcy Code on account of fraud. Ford’s motion for summary judgment is now before the court.
The court notes that there is no such section as Civil Code § 2945(b)(2). Assuming that this was a
Entered on Docket
April 22, 2008
GLORIA L. FRANKLIN, CLERK
U.S BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
Case: 08-01014 Doc# 20 Filed: 04/22/08 Entered: 04/22/08 14:25:59 Page 1 of 2

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drafting error by Ford’s counsel, it is still clear that the judgment was based equally on statutory violations and
fraud. Since the relief obtained by Ford could have been based on statutory violation alone, the finding of
fraud was not necessary to the judgment. See Four Star Elec. v. F & H Constr., 7 Cal.App. 4th 1375,
1379-80 (Cal.App.1992). Accordingly, Warren is not precluded from defending this action. .
For the foregoing reasons, Ford’s motion for summary judgment will be denied. If Warren is
successful in setting aside his default in this case due to his failure to attend the scheduling conference, he shall
submit an appropriate form of order.
Dated: April 22, 2008
SAlan Jaroslovsky
U.S. Bankruptcy Judge
Case: 08-01014 Doc# 20 Filed: 04/22/08 Entered: 04/22/08 14:25:59 Page 2 of 2