Palm Finance Corp. v. Eberts (In Re Eberts)

MEMORANDUM

Palm Finance Corporation (“Palm”), Night Train Films, LLC (“NTF”), and A-Mark Entertainment, LLC (“AME”) commenced an adversary proceeding against Christopher A. Eberts during his Chapter 7 bankruptcy proceedings. Palm, NTF, and AME sought the bankruptcy court’s determination that the debts owed to them were nondischargeable under certain provisions of the bankruptcy code. The bankruptcy court concluded that part of Palm’s claimed debt was nondischargeable and that it was entitled to prejudgment interest pursuant to 28 U.S.C. § 1961 , but ruled in Eberts’s favor on the remaining claims. The district court affirmed, and Palm, NTF, and AME appealed. We have jurisdiction pursuant to 28 U.S.C. § 158 (d), and we affirm.

1. The bankruptcy court properly concluded that NTF’s claim was not excepted from discharge under 11 U.S.C. § 523 (a)(4) because Eberts was not a fiduciary of NTF. See Ragsdale v. Haller, 780 F.2d 794, 795 (9th Cir.1986) (“[Djebts that arise from fraud or defalcation while [the debtor was] acting in a fiduciary capacity ... are nondischargeable.” (second alteration in original) (internal quotation marks omitted)). NTF has identified no provision of…