Case Summary:
Plaintiff won summary judgment in a state court lawsuit against Debtor/Defendant based on breach of contract, misrepresentation, and theft by contractor. State court judgment awarded Plaintiff treble damages under statute, but did not include substantive analysis for doing so. Debtor filed bankruptcy, and Plaintiff sought nondischargeability determination under Code section 523(a)(4). The Court found that elements for defalcation while acting in fiduciary capacity under section 523(a)(4) were actually litigated and determined in state court suit, and therefore ruled in favor of the Plaintiff. The Court declined to rule that the treble damages award was nondischargeable, however, because the factors supporting such an award were not presented by Plaintiff, responded to by the Debtor, or analyzed and applied to the facts by the state court.

Statute/Rule References:
11 U.S.C § 523(a)(4) -- Nondischargeability – fraud or defalcation in fiduciary capacity
Fed. R. Civ. P. 56 -- Summary Judgment

Key Terms:
Claim Preclusion
Collateral Estoppel
Res Judicata