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IN RE BAYLIS

Nos. 02-1364, 02-1415.

313 F.3d 9 (2002)

In re: Carl E. BAYLIS, Debtor. Constance B. Rutanen; Ella Quevillon, by and for the Estate Of Robert S. Quevillon; Theresa J. Alexander, Plaintiffs, Appellees/Cross-Appellants, Robert D. Quevillon; Marc Quevillon; Paula L. Flowers; John Quevillon, Plaintiffs, v. Carl E. Baylis, individually and in his capacity as co-trustee of the Antonia Quevillon Trust, Debtor, Appellant/Cross-Appellee.

United States Court of Appeals, First Circuit.

Decided December 10, 2002.

Attorney(s) appearing for the Case

David M. Nickless with whom Nickless and Phillips was on brief for appellant.

Katherine A. Robertson with whom Robert A. Gelinas and Bulkley, Richardson and Gelinas, LLP were on brief for appellees.

Before LYNCH, Circuit Judge, STAHL, Senior Circuit Judge, and HOWARD, Circuit Judge.

LYNCH, Circuit Judge.

This case addresses the rules that should be applied in determining when a fiduciary of a trust is in "defalcation while acting in a fiduciary capacity," and so may not be discharged from those debts in bankruptcy under 11 U.S.C. § 523(a)(4) (2000). The issue is one of first impression for this court.

I.

We describe the facts as they are set forth in the decision of the Massachusetts Supreme Judicial Court (SJC), as supplemented...

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