Case Summary:
Plaintiffs Hyrad Corporation and Howard C. Nelson brought this action to have their judgment for breach of fiduciary duty and theft against Frederick J. Furrer declared nondischargeable under 11 U.S.C. § 523(a)(4) or in the alternative under 11 U.S.C. § 523(a)(6). Plaintiffs moved for summary judgment. The Court found summary judgment proper under § 523(a)(4), and gave preclusive effect to the state court's judgment. Defendant argued there were material facts in dispute with regard to whether he held a position of "ascendancy" over the other directors, and with respect to whether he furnished the state court with original source documents. The Court found Furrer held a position of ascendancy over the other directors, granted summary judgment, and declared the debt along with state court awarded exemplary damages were nondischargeable.

Statute/Rule References:
11 U.S.C. § 523(a)(4) -- Nondischargeability - Fraud or Defalcation in Fiduciary Capacity

Key Terms:
Ascendancy
Defalcation while Acting as a Fiduciary
Fiduciary Capacity
Fraud - Fiduciary Capacity