In the Matter Of: Bruce Barton Schwager, Debtor. Bruce Barton Schwager v. Meyer Fallas Fred Fallas William Cramer Malcolm Marcoe

KING, Circuit Judge:

Bruce Barton Schwager appeals the district court’s affirming of the bankruptcy court’s ruling that his debt from a state court judgment against him is nondischargeable under 11 U.S.C. § 523(a)(4). He argues, inter alia, that the bankruptcy court improperly applied the doctrine of collateral estoppel to the jury’s findings in the underlying state court judgment to determine that his debt was nondischargeable. We agree that the use of collateral estoppel was improper in this case, and thus, we reverse and remand.

I. BACKGROUND

The full details of this case are set forth in the…