Nahman v. Jacks (In Re Jacks)

OPINION ON SUMMARY JUDGMENT MOTIONS

SAMUEL L. BUFFORD, Bankruptcy Judge.

I. INTRODUCTION

These summary judgment motions raise two principal issues related to the liability of corporate officers and directors to a creditor of the corporation under § 523(a)(4) 1 . The first question is whether the claim of such a creditor can arise where the insolvency is created by the transactions constituting the defalcation at issue. The second question is whether, under California law, an individual creditor has standing to recover from a corporate director under § 523(a)(4) without bringing a derivative…