Board of Trustees v. Parker (In Re Parker)
The Boards of Trustees of three Carpenters Benefit Funds filed an adversary complaint against David Parker, seeking to deny his bankruptcy discharge or declare certain debts nondischargeable under 11 U.S.C. §§ 727, 523(a)(4), and/or (a)(6). The debts stemmed from Parker Deco, Inc.'s (where Parker was President) failure to make contributions and remit union dues to the Benefit Funds per a Collective Bargaining Agreement (CBA). A prior District Court judgment had been obtained against Parker Deco. During the trial, the Benefit Funds withdrew their § 523(a)(6) and § 727 claims, proceeding solely on § 523(a)(4). The court found that unpaid employer contributions did not constitute 'plan assets' under ERISA without explicit CBA language, thus Parker was not a fiduciary for those. For employee withholdings, the court found no larceny or embezzlement due to lack of fraudulent intent. Consequently, the court dismissed the complaint, finding the Benefit Funds failed to meet their burden of proof, and denied both parties' requests for attorney's fees.