IN RE RAYNOR

No. 89-3356.

922 F.2d 1146 (1991)

In Re Charles G. RAYNOR, Sr., aka/dba fdba AAA Distributors and Associates, New Bern Drag Strip, Inc., AMIS Auto Supply, Auto Parts Distributors of Havelock, Debtor. M & M TRANSMISSIONS, INC., Plaintiff-Appellee, v. Charles G. RAYNOR, Sr., Defendant-Appellant.

United States Court of Appeals, Fourth Circuit.

Decided January 10, 1991.


Attorney(s) appearing for the Case

Keith E. Fountain (argued), Lanier & Fountain, Jacksonville, N.C., for defendant-appellant; Gordon E. Robinson, Jr., on brief.

Stephen Graham Inman (argued), Singleton, Murray & Craven, Fayetteville, N.C., for plaintiff-appellee; Ocie F. Murray, Jr., on brief.

Before CHAPMAN and NIEMEYER, Circuit Judges, and BUTZNER, Senior Circuit Judge.


BUTZNER, Senior Circuit Judge:

The narrow issue in this appeal is whether the district court properly denied discharge of a debtor by accepting as res judicata a prior default judgment awarding damages for fraud. We conclude that the default judgment provides an insufficient basis for the denial of discharge. We reverse and remand the case with directions to the bankruptcy court to conduct an adversary evidentiary proceeding on the issue of fraud in order to decide...

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