Collections of Life and Heritage Inc. v. Gaston-Thacker Gen. Partners

A partnership promptly disclosed to the first partner's bankruptcy trustee that the appellant owed a $484,850.71 judgment to the partnership and the bankruptcy trustee determined that the value of the partnership was such that the judgment added no real value to the first partner's estate.

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After Gaston-Thacker, General Partners “Gaston-Thacker” obtained a judgment against Collections of Life and Heritage, Inc. “Collections of Life” in the amount of $484,850.71, Gaston-Thacker filed a Writ of Fieri Facias in Fulton County, recording the debt. Collections of Life sued to have the writ cancelled.1 The trial court granted a motion for summary judgment filed by Gaston-Thacker, and denied a motion filed by Collections of Life. Collections of Life appeals, arguing inter alia that the failure of one of Gaston-Thacker’s partners to disclose the existence of the judgment to two bankruptcy courts should estop the partnership from collecting the debt. We find this argument meritless, and we affirm. The relevant and undisputed facts show that the two partners of Gaston-Thacker were A. G. Gaston Construction Company, Inc. and Thacker Engineering, Inc. In February 1996, Thacker Engineering filed for Chapter 11 bankruptcy. Shortly thereafter, in May 1996, Gaston-Thacker filed suit against Collections of Life. In September 1996, Gaston-Thacker obtained a judgment against the company in the amount of $484,850.71.

In November 1996, Thacker Engineering’s bankruptcy case was converted to a Chapter 7 bankruptcy, and Allan Nisselson was appointed bankruptcy trustee. Representatives of A. G. Gaston Construction Co. dealt with the trustee. In this regard, Nisselson averred that “A. G. Gaston Construction Co., Inc. timely provided to me and/or my accountant any and all information requested regarding Gaston-Thacker . . . and its assets, including accounting information and underlying documentation.” According to Nisselson, he “was provided with information regarding the existence of a judgment against Collections of Life as well as information regarding the status of collection efforts by and on behalf of the partnership.”

Collections of Life and Heritage Inc. v. Gaston-Thacker Gen. Partners

A partnership promptly disclosed to the first partner's bankruptcy trustee that the appellant owed a $484,850.71 judgment to the partnership and the bankruptcy trustee determined that the value of the partnership was such that the judgment added no real value to the first partner's estate.

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