Williams v. Keown (In re Keown)

OPINION

WILLIAM A. KING, Jr., Bankruptcy Judge.

This case comes before the Court on a complaint to determine the dischargeability of a debt. The Plaintiffs claim that the debtors were guilty of defalcations while acting in a fiduciary capacity and, therefore, the debt should not be discharged. After trial held and upon submission of briefs by counsel, the Court finds that this debt should be discharged in bankruptcy.1

The source of the instant controversy is an agreement of sale executed by the parties on February 17, 1976. At that time, John D. Keown was the head of Gesko Homes, Ltd. which was…