Bankrupt Lawyers Can't Erase Contempt Debt: 6th Circ.

Law360, New York (June 8, 2010, 5:43 PM EDT) -- A federal appeals court has refused to erase a $431,000 debt that bankrupt plaintiffs lawyers Ralph Musilli and Walter Baumgardner owe to the estate of a former colleague stemming from a contempt judgment in a contract fight over legal fees.

Thursday's ruling, in the U.S. Court of Appeals for the Sixth Circuit, affirmed a bankruptcy court’s grant of summary judgment in favor of the estate of deceased attorney Walter Droomers in its adversary lawsuit claiming the contempt debt is nondischargeable.

The case stems from a $1.05...
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