As the IAS Court explained, the State court judgment representing the debt in question adjudicated only plaintiff's contract claims. Plaintiff's fraud claim was severed for future adjudication and unlike a contract claim, would not be dischargeable in bankruptcy (11 USC § 523 [a] [2] [A]). Therefore it remains an open question whether plaintiff would have been able to prove such fraud in an adversary proceeding by a preponderance of the evidence (see, Grogan...
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