Case Summary:
Plaintiffs filed an adversary against a Chapter 7 debtor seeking a determination of nondischargeability under sections 523(a)(2)(A), (a)(4), (a)(6), and a denial of discharge under section 727. Defendant filed a motion to dismiss on all counts and Plaintiff requested leave to amend the Complaint. The Court granted Defendant’s motion on sections 523(a)(4) and 727, but denied the balance of the motion and Plaintiff’s request for leave to amend. In reaching its conclusion, the Court found Plaintiffs’ Complaint failed to allege a fiduciary relationship existed between themselves and Defendants under section 523(a)(4). The Court further found the Plaintiffs failed to articulate a claim under 727 because they did not identify the specific subsection of their 727 claim and they did not plead the 727 claim with specificity. The Court denied Plaintiffs’ motion for leave to amend and noted Plaintiffs had many opportunities to amend their Complaint and their lack of specificity in their Complaint was unjustified. Still, the Complaint had sufficiently pled the bare outlines for claims under section 523(a)(2)(A) and (a)(6).

Statute/Rule References:
11 U.S.C. § 523(a)(2)(A) -- Nondischargeability - False Pretenses, False Representation or Fraud
11 U.S.C. § 523(a)(4) -- Nondischargeability – Fraud or Defalcation in Fiduciary Capacity
11 U.S.C. § 523(a)(6) -- Nondischargeability – Willful and Malicious Injury
11 U.S.C. § 727 -- Discharge
Fed. R. Civ. P. 12(c) -- Motion for Judgment on the Pleadings
Fed. R. Civ. P. 15(a)(2) -- Leave to Amend

Key Terms:
Leave to Amend