Board of Trustees v. Quinones (In re Quinones)

MEMORANDUM

Defendant-Debtors’, Jorge Edgard Quinones and Lidia Delavalle Quinones (Quinoneses), Motion for Summary Adjudication (Motion) came before the court for hearing on August 12, 2015. David N. Chandler appeared on behalf of the Quinoneses. Jolene Kramer appeared on behalf of Plaintiffs, the Board of Trustees (Board) of various employee benefit trust funds.

The Board initiated an adversary proceeding against the Quinoneses seeking to *945 except from discharge debts for unpaid contributions to the funds. The payments were owed pursuant to an agreement entered into between Jorge and the various employee benefit trust funds. The First Amended Complaint to Determine Certain Debt to be Nondischargeable (Complaint) seeks to except the debt from discharge based on a number of provisions, including § 523(a)(2), (a)(4), and (a)(6). Specifically at issue in the present Motion is the Board’s claim of nondischargeability under § 523(a)(4) for “defalcation while acting in a fiduciary capacity, embezzlement, or larceny.”

On July 2, 2015, the Quinoneses filed a Motion for Summary Adjudication. On July 29, the Board filed an opposition to the Quinoneses’ Motion. On July 30, the United…