Peter McCarthy v. Nature's Wing Fin Design, LLC

Good Law
486 F. App'x 650
United States Court of Appeals for the Ninth CircuitOctober 17, 201211-60069California395 words

Opinion

Opinion

MEMORANDUM

Peter Thomas McCarthy appeals pro se from the Bankruptcy Appellate Panel’s (“BAP”) judgment affirming the bankruptcy court’s order determining that McCarthy’s debt to Nature’s Wing Fin Design, LLC was nondischargeable under 11 U.S.C. § 523 (a)(4). We have jurisdiction under 28 U.S.C. § 158 (d). We review de novo BAP decisions, and apply the same standard of review that the BAP applied to the bankruptcy court’s ruling. Boyajian v. New Falls Corp. (In re Boyajian), 564 F.3d 1088, 1090 (9th Cir.2009). We review de novo the bankruptcy court’s grant of summary judgment. Id. We affirm.

The bankruptcy court properly granted summary judgment on the basis of issue preclusion because a prior, final state court decision between the parties necessarily decided that McCarthy committed “defalcation while acting in a fiduciary capacity” with respect to Nature’s Wing. 11 U.S.C. § 523 (a)(4); Harmon v. Kobrin (In re Harmon), 250 F.3d 1240, 1245 (9th Cir.2001) (explaining that “[principles of collateral estoppel apply to proceedings seeking exceptions from discharge brought under 11 U.S.C. § 523 (a),” and setting forth issue preclusion requirements under California law).

McCarthy’s…

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