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Centra Bank Inc. v. Burton (In re Burton)

Centra Bank Inc. v. Burton (In re Burton)

Ruling
Dischargeability proceeding based on debtor corporate principal's breach of fiduciary duty dismissed as to lender but not as to corporation.
Procedural posture

Plaintiffs, a lender and a loan guarantor, brought an adversary proceeding against defendant bankruptcy debtor, a corporate principal who caused a corporation to obtain loans from the lender and personally guaranteed the loans, seeking a determination that debts to the lender and the guarantor were not dischargeable under 11 U.S.C.S. § 523(a)(4) based on fiduciary defalcation. The debtor moved to dismiss the complaint.

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Consumer opinion summary, case decided on September 17, 2009 , LexisNexis #1009-047