Bankr. No.:
04-40923
Adv. No.:
04-4071
Chapter:
7
Date of Decision:
May 18, 2005
Issue:
Whether plaintiff-bank was entitled to summary judgment on its nondischargeability counts under § 523(a)(4) for fraud by a fiduciary or for embezzlement or under § 523(a)(6) for a debt arising from a willful and malicious act where the bank had a secured interest in the corporate store’s inventory and where Debtor, who was a shareholder and officer of the corporate store, had not used inventory proceeds to pay back the corporate store’s notes to the bank?
Ruling:
Debtor was not the bank’s fiduciary so relief under § 523(a)(4) for fraud by a fiduciary could not be granted. The present record also did not show Debtor’s requisite intent so as to allow the bank summary judgment for nondischargeability for embezzlement or for a debt arising from a willful and malicious act.
Full Bankruptcy Court Decision:
