WASHINGTON, D.C. - (Mealey's) The U.S.
Supreme Court on Oct. 29 agreed to hear a case to determine whether a defalcation
was committed by a debtor who, prior to filing for bankruptcy, had been
appointed the trustee of his father's life insurance trust and took out three
loans from the trust...
WASHINGTON, D.C.- The U.S. Supreme Court today heard oral
arguments in a case involving a bank's claim that a debtor who had acted as
trustee for his father's insurance trust acted recklessly and was guilty of
defalcation for making loans to himself during the time he had control of the
WASHINGTON, D.C. - (Mealey's) The U.S. Supreme Court on
May 13 unanimously vacated and remanded a case involving a bank's claim that a
debtor who had acted as trustee for his father's insurance trust was guilty of
defalcation for making loans to himself during the time he had control of...
LexisNexis Core Overview: Nonprofessional
trustee was improperly denied a discharge of a debt in bankruptcy based on
fiduciary defalcation under 11 U.S.C.S. § 523(a)(4) [ an annotated version of this statute is available to lexis.com
subscribers ] since the trustee
repaid loans for the trustee's...
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...