In re: Ruben

Dist. Ct. did not err in granting creditor’s motion for summary judgment in appeal of creditor's adversary claim in Chapter 7 bankruptcy proceeding to have debtor-lawyer pay $174,504.54 in costs of arbitration that arbitrators awarded to creditor in resolving her underlying claim that debtor fraudulently mismanaged her trust. Dist. Ct. did not err in denying debtor’s request for discharge of said debt where: (1) Bankruptcy Ct. had previously refused to discharge creditor’s underlying fraud-based claim; and (2) even though arbitration panel did not award creditor any damages because creditor had been fully compensated in her claim by other parties, panel’s award of costs to creditor carried inference that panel had determined that debtor had actually committed said fraud. Moreover, Ct., in noting that debtor’s conduct with respect to his handling of creditor’s trust was criticized in recent findings by Hearing Board of ARDC, also rejected debtor’s contention that instant costs, which were incurred as result of resolving pre-petition debt, should have been treated as pre-petition debt that was dischargeable.