As to the claim of fiduciary duty, such a claim cannot exist so as to render the debt nondischargeable without the creation of a trust where the duties of each party are spelled out at the beginning of the relationship. In re Fontenot, 89 B.R. 575 (W.D.La. 1988). See also, Matter of Angelle, 610 F.2d 1335 (5th Cir. 1980).
The courts have also recognized that they must act carefully in inferring fraudulent intent from the acts of a debtor who is suffering from bipolar disorder. Dutreix v. Fontenot (In re Fontenot) , 89 B.R. 575, 581 (Bankr. W.D.La. 1988). This is so, because a person with bipolar disorder may suffer from an irrational optimism causing her to believe that "whatever [s]he was doing was going to work out."
The courts have also recognized that they must act carefully in inferring fraudulent intent from the acts of a debtor who is suffering from bipolar disorder. Dutreix v. Fontenot (In re Fontenot), 89 B.R. 575, 581 (Bankr. W.D.La. 1988). This is so, because a person with bipolar disorder may suffer from an irrational optimism causing her to believe that "whatever [s]he was doing was going to work out."
5) Summary on Conversion. Defendants rely heavily on In re Fontenot, 89 B.R. 575 (Bkrtcy.W.D.La. 1988), in support of their claim that Mr. Routson's bi-polar condition rendered him incapable of acting maliciously. Fontenot is more thoroughly discussed in the next section of this Memorandum Decision and Order.
H.R. Rep. No. 595, Cong., 1st Sess. 130-31 (1977), reprinted in 1978 U.S.C.C.A.N. 5787, 6453. Our colleagues in the Eighth Circuit fathomed why Congress intentionally omitted the reasonable reliance language from subparagraph (A): In re Kimzey, 761 F.2d 421 (7th Cir. 1985); In re Mullet, 817 F.2d 677 (10th Cir. 1987); In re Hunter, 780 F.2d 1577 (11th Cir. 1986); Calgagno v. Ezell, 112 B.R. 146 (E.D.La. 1990); In re Fontenot, 89 B.R. 575 (Bankr.W.D.La. 1988); In re Paolino, 89 B.R. 453 (Bankr.E.D.Pa. 1988); In re Gering, 69 B.R. 686 (Bankr.D.Kan. 1987); In re Hill, 44 B.R. 645 (Bankr.D.Mass. 1984).
In addition, some bankruptcy courts have also noted that mental illness can cause debtors to be overly optimistic about ability to pay their debts. See In re Fontenot, 89 B.R. 575, 581 (Bankr. W.D. La. 1988). In Fontenot, the debtor introduced testimony from his psychiatrist that debtor's manic states due to his bi-polar disorder impaired him to make irrational decisions on his ability to pay suppliers.
In that case, the debtor performed various renovations to the plaintiffs' home. 89 B.R. 575, 578 (W.D.La.1988). Although he performed the work satisfactorily, the debtor failed to pay a number of material suppliers who filed liens against the home.
The latter should be analyzed under 11 U.S.C. § 523(a)(4) and (a)(6). See Dutreix v. Fontenot (In re Fontenot), 89 B.R. 575, 580 (Bankr.W.D.La. 1988). I find that Bren's testimony as well as the testimony of Scott Jerome is consistent with Bren's good faith intention to fulfill his obligations regarding subcontractors' payments.
. 497, 501 (Bankr.N.D.N.Y. 1989); In re Wines, 112 B.R. 44, 45 (Bankr.S.D.Fla. 1990); In re Burgess, 106 B.R. 612, 621 (Bankr.D.Neb. 1989); In re Manzo, 106 B.R. 69, 72 (Bankr.E.D.Pa. 1989); In re Guy, 101 B.R. 961, 991 (Bankr.N.D.Ind. 1988); In re Bobofchak, 101 B.R. 465, 467 (Bankr.E.D.Va. 1989); In re Hirsch, 101 B.R. 364, 365-366 (Bankr.S.D.Fla. 1989), aff'd, Hirsch v. Winter, 108 B.R. 345 (S.D.Fla. 1989), modified, 920 F.2d 11 (11th Cir. 1990); In re Eichelberger, 100 B.R. 861, 866 (Bankr.S.D.Tex. 1989); In re Couch, 100 B.R. 802, 808 (Bankr.E.D.Va. 1988); In re Weber, 99 B.R. 1001, 1012 (Bankr.D.Utah 1989); In re Curth, 98 B.R. 324, 327 (Bankr.S.D.Ohio 1989); In re Kern, 98 B.R. 321, 324 (Bankr.S.D.Ohio 1989); In re Valdes, 98 B.R. 78, 80 (Bankr.M.D.Fla. 1989); In re James, 94 B.R. 350, 352-353 (Bankr.E.D.Pa. 1988); In re Mullin, 91 B.R. 175, 176 (Bankr.S.D.Fla. 1988); In re Crosswhite, 91 B.R. 156, 160 (Bankr.M.D.Fla. 1988); In re Peters, 90 B.R. 588, 605 (Bankr.N.D.N.Y. 1988); In re Fontenot, 89 B.R. 575, 582 (Bankr.W.D.La. 1988); In re Wright, 87 B.R. 1011, 1018 (Bankr.D.S.D. 1988); In re Kelley, 84 B.R. 225, 230 (Bankr.M.D.Fla. 1988); In re Codias, 78 B.R. 344, 346 (Bankr.S.D.Fla. 1987); In re Gans, 75 B.R. 474, 490 (Bankr.S.D.N.Y. 1987); In re Twitchell, 72 B.R. 431, 435 (Bankr.D.Utah 1987), rev'd on other grounds, 91 B.R. 961 (D.Utah 1988), rev'd, 892 F.2d 86 (10th Cir. 1989); In re Weedman, 65 B.R. 288, 291 n. 10 (Bankr.W.D.Ky. 1986); In re Anderson, 64 B.R. 331, 334 (Bankr.N.D.Ill. 1986); In re Alvey, 56 B.R. 170, 173 (Bankr.W.D.Ky. 1985); In re Nicholson, 55 B.R. 645, 648 (Bankr.N.D.Ga. 1985); In re Golden, 54 B.R. 957, 964 (Bankr.D.Mass. 1985); In re Owens, 54 B.R. 162, 165 (Bankr.D.S.C. 1984); In re Myers, 52 B.R. 901, 904 (Bankr.E.D.Va. 1985); In re Wolfington, 48 B.R. 920, 923 (Bankr.E.D.Pa. 1985); In re Gagliano, 44 B.R. 259, 261 (Bankr.N.D.Ill. 1984); In re Kraus, 37 B.R. 126, 131 (Bankr.E.D.Mich.
Debtor's self-serving testimony was not credible or specific and did not demonstrate that he suffers from any medically recognized mental illness. While recognized mental problems can well make credible a debtor's asserted reasonable belief in ability to pay, In re Fontenot, 89 B.R. 575, 581 (Bankr.W.D.La. 1988), some competent medical evidence would be required to lend weight and substance to that defense. Moreover, a recent opinion is instructive.