United States Sixth Circuit

In an adversary proceeding brought by employee benefit funds seeking a declaration that employer-bankruptcy debtor's debt could not be discharged, a judgment against the funds is affirmed where: 1) ERISA fiduciaries do not necessarily act in a fiduciary capacity for purposes of 11 U.S.C. section 523(a)(4), and instead, a court should examine the substance of the alleged fiduciary relationship to determine if the requirements for a defalcation are satisfied; and 2) in this case, the requirements were not met.

Appellate Information

• Decided 07/03/2007
• Published 07/03/2007

Judges

• Before:  MARTIN and SUTTON, Circuit Judges;  GRAHAM, District Judge.

Court

• United States Sixth Circuit

Counsel

• For Appellees:
  
• ARGUED:  Richard L. Stoper, Jr., Rotatori, Bender, Gragel, Stoper & Alexander Co., Cleveland, Ohio, for Appellants.  Keith L. Borders, Rauser & Associates Legal Clinic Co., Cleveland, Ohio, for Appellee.   ON BRIEF:  Richard L. Stoper, Jr., Rotatori, Bender, Gragel, Stoper & Alexander Co., Cleveland, Ohio, for Appellants.  Keith L. Borders, Rauser & Associates Legal Clinic Co., Cleveland, Ohio, for Appellee.