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IN RE BUGNA

No. 93-55238.

33 F.3d 1054 (1994)

In re Randolph C. BUGNA, Debtor. Randolph C. BUGNA, Appellant, v. Edward E. McARTHUR, Appellee.

United States Court of Appeals, Ninth Circuit.

Decided August 16, 1994.

Attorney(s) appearing for the Case

La Verne J. Bugna, Newport Beach, CA, for appellant.

Jeffrey I. Golden and Nemer Buchalter, Buchalter, Nemer, Fields & Younger, Newport Beach, CA, James W. Lundquist, Orange, CA, and Office of the U.S. Trustee, Santa Ana, CA, for appellee.

Before: D.W. NELSON, BEEZER and KOZINSKI, Circuit Judges.

KOZINSKI, Circuit Judge.

We consider two technical but important questions of bankruptcy law: (1) Are state court findings that the debtor committed fraud and breach of fiduciary duty binding on the debtor in dischargeability proceedings? And, (2) does Bankruptcy Code section 523(a)(4) preclude discharge of punitive damages?

A. Bugna and McArthur were business partners. Bugna, a licensed real estate broker, agreed to purchase for McArthur a 14...

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