Case Summary:
Plaintiff's complaint seeking to have obligation of debtor to him declared nondischargeable on basis of 11 U.S.C. §§ 523(a)(2)(A), (a)(4) and (a)(6) is dismissed. Plaintiff was former partner of debtor and creditor of debtor on basis of prepetition dissolution agreement executed October 2, 1984. Business subsequently failed in June 1985, and substantial liabilities remained. Plaintiff presented no evidence of fraud by debtor nor any evidence of willful or malicious conduct by debtor. Term "fiduciary capacity" in § 523(a)(4) is limited to technical or express trusts. Citing In re Donny, 19 B.R. 354 (Bankr. W.D. Wis. 1982). No such trust existed here.
Debtor's trial motion to dismiss his wife from proceeding is granted. Evidence revealed she was not a partner in business enterprise nor was she involved in any fraudulent activity.
Statue/Rule References:
11 U.S.C. § 523(a)(2)(A) -- Nondischargeability - Fraud
11 U.S.C. § 523(a)(4) -- Nondischargeability - Fraud in Fiduciary Capacity
11 U.S.C. § 523(a)(6) -- Nondischargeability - Willful and Malicious Injury
Key Terms:
Dismissal
Willful and Malicious