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Defalcation Defined

July 2013

The Bankruptcy Strategist

The Supreme Court’s decision in Bullock v. BankChampaign, N.A., 133 S. Ct. 1754 (May 13, 2013), finally defined “defalcation” as requiring a culpable state of mind involving knowledge of, or gross recklessness in respect to, the improper nature of fiduciary behavior. In his article, “Defalcation Defined,” which appeared in the July 2013 issue of The Bankruptcy Strategist, Sutherland Partner Thomas M. Byrne discusses the Bullock decision and its potential implications for future bankruptcy matters.

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