(Bankr. E.D. Ky. Feb. 20, 2018)
The bankruptcy court enters summary judgment in favor of the debtors in this nondischargeability action. Following a Christmas Eve fire at the debtors’ home, they entered into a contract with the plaintiff to restore the property. The contract provided that the plaintiff would take insurance proceeds as compensation for the work. A dispute arose, and the debtors used the insurance proceeds for other expenses. The plaintiff argued that the debt is non-dischargeable under 11 U.S.C. § 523(a)(2) and (4). The court disagrees, finding the creditor failed to present evidence sufficient to establish the necessary intent under § 523(a)(2) or to establish a “fiduciary capacity” under § 523(a)(4). Opinion below.
Attorneys for Creditor: Frost Brown Todd LLC, Patricia K. Burgess; Michael E. Nitardy
Attorney for Debtors: Michael L. Baker
Author: Matt Lindblom