Opinion
Nos. KS–13–030 KS–13–035. Bankruptcy No. 11–10282. Adversary No. 11–05103.
2014-06-12
In re John Charles NEUSCHAFER, doing business as Gridiron Consulting Inc., and Audrey Lane Neuschafer, also known as Audrey Lane Harwell, Debtors. Andrew Cherry and Pamela Cherry, Plaintiffs–Appellants–Cross–Appellees, v. John Charles Neuschafer, Defendant–Appellee–Cross–Appellant.
Regarding the RICO judgment, we conclude the Bankruptcy Court did not err in denying preclusive effect to it because the state court did not necessarily determine the Cherrys actually suffered damages in the amount of $355,000. We also conclude the Bankruptcy Court did not err in excluding the debt for attorney's fees and costs from the amount excepted from discharge because it is unclear whether the fees and costs flowed or arose from the fraud-in-the-inducement misrepresentations or the pertinent predicate acts.