- 11 U.S.C.
ATR-Kim Eng Capital Partners Inc. v. Bonilla (In re Bonilla)
Oct
16
2007
Ruling
Director's complete failure to act to preserve corporate assets was fiduciary defalcation so that debt was nondischargeable.
Procedural posture
Plaintiff creditor filed an adversary proceeding against defendant debtor seeking a determination that its debt was nondischargeable pursuant to 11 U.S.C. § 523(a)(4). The debt arose from a state court judgment in which found that the debtor, a corporate director, had breached his duty of loyalty to the creditor, a minority shareholder. The debtor moved to dismiss contending that a corporate director was not a "fiduciary"under section 523(a)(4).
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Court
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