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Bankruptcy – Dischargeability – Payment to Ex-employee – Summary Judgment – Fact Issues – Collateral Source Rule (access required)

Buchi Corp. v. Martin There are factual disputes regarding (1) whether the debtor acted in a fiduciary capacity with regard to funds that his former employer deposited into his account and (2) whether the debtor knew the amount of commissions that the employer believed was due under the parties’ severance agreement. Without resolving these factual disputes, the court cannot grant summary judgment as to whether the debtor’s actions constituted fraud or defalcation under 11 U.S.C. § 523(a)(4) or willful and malicious injury under 11 U.S.C. § 523(a)(6).


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