Document ID: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-ca8-05-03449/USCOURTS-ca8-05-03449-0/pdf.json

Parties Involved:
Heartland Physical Therapy
Appellee
Shelly A. Koehler
Appellee
Mary Jo Kurmel
Not Party
Timothy M. Kurmel
Appellant
Judith O. Letrud
Appellee

Document Text:

United States Court of Appeals

FOR THE EIGHTH CIRCUIT

___________

No. 05-3449

___________

In the Matter of: Timothy M. Kurmel; *

Mary Jo Kurmel, *

*

Debtors. *

_______________________ *

*

Judith O. Letrud; Shelly A. Koehler; *

Heartland Physical Therapy, Inc., *

*

Plaintiffs - Appellees. * Appeal from the United States

* District Court for the District 

v. * of Nebraska. 

*

Timothy M. Kurmel; * [UNPUBLISHED]

*

Defendant - Appellant, *

*

Mary Jo Kurmel, *

*

Defendant. *

 ___________

Submitted: April 21, 2006

Filed: April 26, 2006

___________

Before MURPHY, MELLOY, and GRUENDER, Circuit Judges.

___________

PER CURIAM.

Appellate Case: 05-3449 Page: 1 Date Filed: 04/26/2006 Entry ID: 2037421
1

 The Honorable Richard G. Kopf, United States District Judge for the District

of Nebraska. 

-2-

Judith O. Letrud, Shelly A. Koehler, and Heartland Physical Therapy, Inc. filed

a complaint in the bankruptcy court seeking a determination that a prior state court

judgment entered in their favor against Timothy M. Kurmel was a nondischargeable

debt. Both sides moved for summary judgment, and the bankruptcy court entered

judgment in favor of the plaintiffs. Kurmel appealed to the district court1

, arguing that

the debt was dischargeable in bankruptcy. The district court affirmed the judgment,

and Kurmel again appeals. 

The plaintiffs prior judgment had resulted from a complaint filed by the

plaintiffs against Kurmel and his corporation, Partners in Physical Therapy

("Partners"), alleging that Kurmel had used Partners to overcharge them for contract

labor. After a bench trial, the state court found that Kurmel had "violated the trust

placed in him by the plaintiffs", that there was "overwhelming" evidence Kurmel used

Partners as an "alter ego", and that "it is apparent that Mr. Kurmel violated his

fiduciary duties" to the plaintiffs. It entered judgment against Kurmel in the amount

of $378,386.30. Subsequent to the ruling, Kurmel filed for bankruptcy protection. 

Under 11 U.S.C. § 523(a)(4), a debt is nondischargeable if it is for "fraud or

defalcation while acting in a fiduciary capacity". After de novo review, see Kasper

v. Federated Mut. Ins. Co., 425 F.3d 496, 502 (8th Cir. 2005), we conclude that the

debt is nondischargeable under § 523(a)(4) for the reasons explained by the district

court. Accordingly, we affirm. See 8th Cir. R. 47B. 

______________________________

Appellate Case: 05-3449 Page: 2 Date Filed: 04/26/2006 Entry ID: 2037421