Case Summary:
Defendant acted in the capacity of financial power of attorney for his mother, who passed away in 2013. Plaintiff is the Personal Representative of the late mother’s estate. Defendant could not account for $240,927.70 belonging to the mother’s estate. In October 2017, a state court Judge entered an order pursuant to a stipulation between the parties and awarded the Plaintiff $120,463.85. Defendant filed a voluntary Chapter 7 in December 2018. Plaintiff brought this adversary seeking a nondischargeability determination with respect to the state court order under 11 U.S.C. § 523(a)(4). Defendant filed a pro se answer and moved to dismiss the adversary complaint without any statutory citations. The Court interpreted the Defendant’s answer to move for dismissal under Federal Rule of Bankruptcy Procedure 7012(b), adopting Federal Rule of Civil Procedure 12(b)(6). The Court ruled that the Plaintiff’s complaint is well pleaded and states a plausible claim that the Plaintiff is entitled to relief. The Court denied the Defendant’s motion to dismiss.

Statute/Rule References:
11 U.S.C. § 523(a)(4) -- Nondischargeability - Fraud or Defalcation in Fiduciary Capacity
Fed. R. Bankr. P. 7012(b) -- Defenses and Objections
Fed. R. Civ. P. 12(b)(6) -- Motion to Dismiss for Failure to State a Claim

Key Terms:
Motion to Dismiss
Nondischargeability
Plausibility Standard