Chapter 7 debtor, the president and treasurer of plaintiff credit union, appealed a bankruptcy court decision that concluded plaintiff's claim against him was non-dischargeable under 11 U.S.C. § 523(a)(4). The sole issue on appeal was whether debtor was acting in a fiduciary capacity when the proven defalcations took place. The district court noted that the general meaning of "fiduciary" is far too broad for the purposes of § 523(a)(4), which is narrowly construed, and that fiduciary capacity under the statute has been defined as arising only from an express or technical trust. The court rejected the position taken by some courts that debts due to breach of fiduciary duties by corporate or bank officers is sufficient to satisfy § 523(a)(4), finding that interpretation to be overly broad. The court concluded that plaintiff was required to show that all of debtor's defalcations occurred while he was acting as a trustee under a pre-existing express agreement or statute. Finding that no express agreement or statute made debtor a trustee over plaintiff's funds, the court reversed the bankruptcy court's decision.