The plaintiff brought a motion for partial judgment under Rule 51.06 for $1,038,616, an amount admitted by the defendants to have been misappropriated while acting in a fiduciary capacity as trustees.
The plaintiff also sought a declaration that this debt would survive bankruptcy and substantial indemnity costs.
The court granted partial judgment for the admitted amount, awarded pre-judgment interest, and declared that the debt arose from fraud, embezzlement, misappropriation, or defalcation while acting in a fiduciary capacity.
However, the court declined to make a pre-emptive declaration that the debt would survive bankruptcy, deeming it hypothetical.
Partial indemnity costs were awarded to the plaintiff, and directions were given for scheduling the remaining summary judgment motion.