In re Wright (01-53376, Adv. No. 01-05154)

A creditor-farmer filed nondischargeability complaint under 11 U.S.C. § 523(a)(4) and (a)(6) against Debtor, a seed dealer, for failing to pay the creditor for seeds he had harvested during three growing seasons. With respect to § 523(a)(4) the creditor failed to show any statute or common law rule that gave rise to a fiduciary duty, thus failing to prove fiduciary fraud or defalcation. The creditor also failed to prove embezzlement and larceny because the facts indicated that Debtor intended to pay the creditor, thus demonstrating a lack of fraudulent intent. With respect to § 523(a)(6), the creditor failed to prove willful and malicious injury because he was aware of that Debtor had sold his seeds and had not remitted payment, and despite this knowledge, the creditor failed to take steps to protect his property.

Monday, June 10, 2002