LaMacchia v. Tarbell (In re Tarbell)
Nov
29
2010
Ruling
Failure to meet fiduciary standard of due care did not make debt nondischargeable for defalcation or fraud.
Procedural posture
Creditor filed a complaint seeking a determination that a debt owed to him by chapter 7 debtors was excepted from discharge under 11 U.S.C.S. § 523(a)(4) or alternatively, under § 523(a)(2) and (6). The creditor filed a motion for judgment on the pleadings or, in the alternative, a motion for summary judgment, arguing that collateral estoppel required the court to find a state orphans' court order binding and dispositive.
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Court
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