Saturday, August 3, 2013

New Ninth Circuit Bankruptcy Law Opinion! - In re Perle

By Michael Fuller, Portland Trial Attorney

In re Perle (9th Cir. Aug. 2, 2013)

In 1998, Fiero Brothers won an arbitration award for securities fraud against Cery Perle.

Perle filed chapter 7 bankruptcy in 2001. His schedules disclosed the arbitration award but failed to list Fiero Brothers as a creditor.

Although Fiero Brothers' attorney participated in the bankruptcy on behalf of another client, Fiero Brothers never received direct notice and didn't appear in the case.

The Ninth Circuit Court of Appeals held the arbitration award was non-dischargeable because Fiero Brothers did not receive proper notice, despite its attorney's actual knowledge of the case.

The Court cited Ringgold Corp. v. Worrall, 880 F.2d 1138, 1141–42 (9th Cir. 1989) for the general rule that a lawyer's knowledge may be imputed upon a client.

However, the Court reasoned that under the facts of this case, agency theory was inapplicable because Fiero Brothers' attorney did not represent it in the bankruptcy at the time he learned of the case.

Read the full opinion for complete analysis:

Commentary: The equities in this case favor the creditor because its underlying claim is indisputably non-dischargeable. Even if the BAP held Fiero Brothers' attorney's knowledge constituted proper notice for purposes of section 523, Fiero Brothers might have nonetheless prevailed by proving the debtor's omission was intentional.


  1. Hi there, I found your site via Google while looking for a related topic, your web site came up, it looks good. I've bookmarked it in my google bookmarks. website developer singapore

  2. Hey There. I found your blog using msn. That is a really neatly written article. I will be sure to bookmark it and return to read more of your useful information. Thank you for the post. I’ll certainly return. 怎么写简历

  3. It is truly a well-researched content and excellent wording. I got so engaged in this material that I couldn’t wait reading. I am impressed with your work and skill. Thanks. debt settlement lawyer mn

  4. Informative post indeed, I’ve being in and out reading posts regularly. we provide bankruptcy attorney near Tampa Bay at affordable prices. for more info visit our website.

  5. I am very thankful to you as the post you have shared here is amazing. Through this post I got some helpful knowledge. Thanks for posting it. Keep posting. Bankruptcy Attorney Toledo Ohio