Poynter v. Great American Insurance Company (In re Poynter)
- Summarized by Laura Bartell , Wayne State University Law School
- 11 years 4 months ago
- Citation:
- No. 12-6424 (6th Cir. Sept. 6, 2013)
- Tag(s):
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- Ruling:
- Affirming decision of district court finding indemnification obligations for payments on performance bond insurance were non-dischargeable under 11 U.S.C. 523(a)(4). Court held that creditor established that debtor engaged in defalcation while acting in a fiduciary capacity when debtor failed to hold in trust funds received from contracts covered by creditor's performance bond.
- Procedural context:
- Bankruptcy court granted motion for summary judgment to creditor challenging dischargeability of debt under 11 U.S.C. 523(a)(4). District court affirmed, and debtor appealed.
- Facts:
- Great American Insurance Company provided payment and performance bond insurance to debtor and was forced to make payment when debtor failed to complete three bonded projects. Debtor filed for chapter 7 bankruptcy protection, and Great American asserted that its debt was non-dischargeable under 11 U.S.C. 523(a)(4) because debtor failed to maintain the payment of bonded contract funds in trust as required by indemnity agreement. The bankruptcy court granted Great American's motion for summary judgment, and the district court affirmed. Debtor appealed.
- Judge(s):
- Cole and Donald, Circuit Judges, and Marbley, District Judge
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