Date: 07-13-2023

Case Style:

Jon Christian Amberson v. James Argyle McAllen, et al.

Case Number: 5:21-CV-496

Judge: Xavier Rodriguez

Court: United States District Court for the Western District of Texas (Bexar County)

Plaintiff's Attorney:

Defendant's Attorney: David S. Gragg, David R. Montpas, David McDonald Prichard, Natalie Friend Wilson

Description: San Antonio, Texas Civil Litigation lawyer represented Plaintiff who sued Defendants on fraud theories.

In 2020, Appellee James McAllen won a multi-million-dollar arbitration award (the “Award”) against his former attorney and son-in-law, Jon Amberson. Amberson soon filed for bankruptcy and sought to discharge the amounts awarded against him. McAllen objected under 11 U.S.C. § 523(a) (“Exceptions to Discharge”) and sought summary judgment, arguing that (i) the Award is entitled to preclusive effect based on the doctrine of collateral estoppel and (ii) the Award found that all the elements of § 523(a) were met. The bankruptcy court granted summary judgment with respect to the bulk of the Award. The district court affirmed, and Amberson timely appeals. This court has jurisdiction under 28 U.S.C. § 158(d)(1).

Amberson argues that the lower courts erred in finding the Award is entitled to preclusive effect because the Award contains what Amberson calls a “disclaimer,” specifying that it is merely a “reasoned award,” not “formal
findings of fact and law.” McAllen argues, and the lower courts held, that this “disclaimer” is not dispositive and the arbitrator’s 53-page, singlespaced Award, predicated on a 10.5-day hearing that involved more than 300
exhibits and testimony from 16 live witnesses, clearly satisfies the requirements for collateral estoppel.

Outcome: Affirmed on appeal.

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