(Bankr. W.D. Ky. Sep. 16, 2016)
The bankruptcy court grants in part the plaintiffs’ motion for summary judgment in this nondischargeability action. The court denies the motion as to the amount of damages. The debtor admitted to committing the fraud and embezzlement while employed by the plaintiff car dealer. Thus, the court finds that the elements in 11 U.S.C. 523(a)(6) are satisfied, as the undisputed facts established that the debt arose from the willful and malicious injury by the debtor. However, Kentucky’s statute of repose for fraud claims creates an issue as to how much of the loss can be attributed to acts committed within the ten-year repose period. Opinion below.
Attorney for plaintiffs: Stoll Keenon Ogden PLLC, Adam Mastin Back
Attorney for debtor: Lowen & Morris, Jan C. Morris
Author: Matt Lindblom