Building Trades United Pension Trust Fund v. Schultz (In re Schultz)

MEMORANDUM DECISION

C. N. CLEVERT, Bankruptcy Judge.

I

The issue in this case is whether the discharge of a debt may be denied under 11 U.S.C. § 523(a)(4) because the debtors’ contracting businesses failed to make contributions to employee benefit plans as required by binding master labor agreements.

II

Prior to filing Chapter 7 bankruptcy petitions on October 9, 1979, the debtors were in the carpentry contracting business, first as partners in R. K. Construction (partnership) and after April 15, 1977, as the managing officers of R. K. Construction, Inc. (corporation).

Both businesses agreed to be…