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Corporate directors facing crushing judgments for leading their companies down the path to ruin can still find shelter in bankruptcy court, the Ninth Circuit U.S. Court of Appeals ruled Wednesday. Though most liens are dischargeable under bankruptcy law, those incurred as a fiduciary trustee are not. But in a unanimous ruling that interpreted California law, the court held that Gregory Cantrell, a former executive at Cal-Micro Inc., isn't subject to that exception and wiped clean $1.3 million in debt.
May 29, 2003 at 12:00 AM
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The original version of this story was published on Law.Com
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