IN RE SHCOLNIK

No. 10-20800.

670 F.3d 624 (2012)

In the Matter of Scott D. SHCOLNIK, Debtor. Scott D. Shcolnik, Appellee, v. Rapid Settlements Ltd.; Capstone Associated Services, Limited, Appellants.

United States Court of Appeals, Fifth Circuit.

February 8, 2012.


Attorney(s) appearing for the Case

Patrick Douglas Devine (argued), Law Office of Patrick D. Devine, Houston, TX, for appellee.

Leonard Harvey Simon (argued), Pendergraft & Simon, L.L.P., William Pimlott Haddock , Houston, TX, for appellants.

Before JONES, Chief Judge, HAYNES, Circuit Judge, and CRONE, District Judge.


EDITH H. JONES, Chief Judge:

The debtor, a former company officer, allegedly attempted to obtain one million dollars by falsely claiming an ownership interest in the company and threatening public exposure of alleged illegal activity. After the debtor lost an arbitration proceeding, he filed for bankruptcy. The question here is whether the company's attorneys' fees for the arbitration represent a nondischargeable debt under 11 U.S.C. § 523(a)(4) or (a)(6). We...

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