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Patricia Mroczenski v. Larry Dennis Mroczenski and Tami Jo Mroczenski (In re Mroczenski), Adv. No. 13-0058, Case No. 12-16800-7 (12/16/2013) -- Judge Catherine J. Furay

Case Summary:
The plaintiff in this adversary proceeding—the incapacitated mother of one of the Defendants/Co-Debtors—secured a $60,000 state court judgment against her son and his wife for breach of fiduciary duties, conversion, and defalcation and sought a determination that the amounts owed were nondischargeable under 11 U.S.C. § 523(a)(4). The Court found that the language of the state court judgment conclusively established that the Plaintiff’s son had engaged in “fraud or defalcation while acting in a fiduciary capacity” and that his debt should be nondischargeable; however, the judgment was not clear regarding his wife’s culpability. Accordingly, summary judgment was granted as to the son but denied as to his wife.

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

Key Terms:
Claim Preclusion
Fiduciary Capacity


Date: 
Monday, December 16, 2013