In the only bankruptcy case pending before it this term,
a unanimous Supreme Court has ruled that the archaic term
"defalcation" used in 11 U.S.C. Sec. 523(a)(4) requires
knowledge of, or gross recklessness in respect to, the
improper nature of the relevant fiduciary behavior
The US Supreme Court
has long taught the importance of certain canons of interpretation unique to
bankruptcy law, the more significant ones being:
Fresh-Start Policy : A primary purpose of
bankruptcy is to relieve the debtor "from the weight of oppressive
indebtedness and permit...
Last week I
published a blog post on the US Supreme Court's unanimous decision in Bullock
v. BankChampaign, N.A. , No. 11-1518 (May 13, 2013) ( pdf )
[ an enhanced version of this opinion is available to lexis.com subscribers ],
that focused on the Court's application of the noscitur a sociis...
Professor Kenneth Klee analyzes
the May 13, 2013 Supreme Court ruling in Bullock v. BankChampaign, N.A. (In re
Bullock) which settled a longstanding circuit split concerning the meaning of
the word "defalcation" in the Bankruptcy Code exception to discharge
in § 523(a)(4) by holding...