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Metro. Steel Inc. v. Halversen (In re Halversen)

Plaintiff creditor sued defendant debtors, alleging that the debt owed to it was nondischargeable pursuant to 11 U.S.C. § 523(a)(4) based on the debtors's fraud or defalcation while acting in a fiduciary capacity. The debtors moved to dismiss the complaint, while the creditor moved for summary judgment.
Alleged violation of state trust statute was not sufficient to demonstrate fraudulent conduct and creditor otherwise failed to prove nondischargeability of debt.
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