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IN RE MUNTON

BAP No. SC-05-1314-SRyMa, Bankruptcy No. 03-05103, Adversary No. 03-90314.

352 B.R. 707 (2006)

In re Peter MUNTON, Debtor. T & D Moravits & Co., Appellant, v. Peter Munton, Appellee.

United States Bankruptcy Appellate Panel of the Ninth Circuit.

Filed September 28, 2006.

Attorney(s) appearing for the Case

John Z. Shafai, Beverly Hills, CA, Attorney for T & D Moravits & Co.

Judith A. Descalso, Escondido, CA, Attorney for Peter Munton.

Before: SMITH, RYAN, and MARLAR, Bankruptcy Judges.

OPINION

SMITH, Bankruptcy Judge.

An unpaid subcontractor sought to except from discharge debt incurred by debtor through the alleged breach of fiduciary duty arising from the misapplication of statutory trust funds. The bankruptcy court denied its motion for summary judgment and this appeal followed.2 We REVERSE and REMAND.

I. FACTS

T & D Moravits & Co. ("Moravits"), a concrete subcontractor, provided...

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