MEMORANDUM OPINION AND ORDER ON PLAINTIFFS' MOTION FOR PARTIAL SUMMARY JUDGMENT

John E. Hoffman, Jr., United States Bankruptcy Judge.

I. Introduction

The plaintiffs, William Duley and Jack Lilley, are co-executors of the probate estate of Laura May Debolt. They allege that Wendy and Jason Thompson, the defendants and the debtors in the underlying Chapter 7 case,1 unlawfully disposed of assets of, and embezzled funds from, Ms. Debolt's trust, and wrongfully converted property belonging to Ms. Debolt to their own use. They sued the Debtors in state court, seeking an order removing Wendy as a co-trustee of the trust and requiring the Debtors to provide an accounting of all trust funds collected, deposited, withdrawn or expended for any purpose. The Plaintiffs also sought a judgment for the total amount of assets of the trust that were wrongfully withheld, transferred or expended. The state court granted default judgment, enjoined the Debtors from disposing of certain property, and removed Wendy as a cotrustee of the trust. Later, following a damages hearing, the state court granted a money judgment against the Debtors, jointly and severally, for $107,271.76 plus interest. After the Debtors filed their Chapter 7 bankruptcy case, the Plaintiffs commenced this adversary proceeding, in which they seek a judgment denying the Debtors' discharge and finding the debt arising from the state court judgment to be non-dischargeable.2 Asserting the collateral-estoppel effect of the state court's judgment, the Plaintiffs filed a motion for partial summary judgment against the Debtors ("Motion") (Doc. 28), seeking judgment only as to the claims asserted under § 523. The Debtors filed a response in opposition to the Motion ("Response") (Doc. 29), and the Plaintiffs filed a reply ("Reply") (Doc. 30). For the reasons set forth below, the Court concludes that the state court's judgment on which the Plaintiffs rely lacks the detailed findings necessary to support the application of the doctrine of issue preclusion in this adversary proceeding. Accordingly, Plaintiffs are not entitled to partial summary judgment.

II. Jurisdiction

The Court has jurisdiction to hear and determine this adversary proceeding pursuant to 28 U.S.C. §§ 157 and 1334 and the general order of reference entered in this district. This is a core proceeding. 28 U.S.C. § 157(b)(2)(I).

III. Procedural and Factual Background

Ms. Debolt, Wendy's great aunt, was in her late 80s in 2006 when the series of events giving rise to this dispute began to unfold. At some unknown point, but presumably in 2006, the Debtors went to live with Ms. Debolt at her property in rural Union County, Ohio. On February 22, 2006, Ms. Debolt executed a power of attorney naming Wendy as her attorney in fact.3 The power of attorney gave Wendy broad authority to, among other things, dispose of property, collect debts, endorse and cash checks, deposit money, open and close accounts and certificates of deposit, transfer assets into or out of any living trust established in Ms. Debolt's name, manage investment accounts, prepare tax returns, register or transfer automobile titles, seek government financial assistance and make gifts, provided that all business transacted under the power of attorney was transacted in Ms. Debolt's name. Compl., Ex. F.

On September 28, 2006, Ms. Debolt executed a quitclaim deed to the Debtors transferring her home and adjacent property to them. Ms. Debolt reserved a life estate in the property for herself. Less than two months later, on November 16, 2006, Ms. Debolt executed a declaration of trust and certificate of trustee authority and power, thereby creating the Laura May Debolt Trust ("Trust"). Compl., Ex. A. At the same time, she executed a last will and testament ("Will"). Compl., Ex. D.

Ms. Debolt was the primary trustee and beneficiary of the Trust, with exclusive rights to the use and benefit of the income and assets of the Trust during her lifetime. Compl., Ex. A at 1-2. She had sole power to exercise dominion and control over the Trust assets. Id. at 1. She named Wendy and William, the husband of another of her nieces, as successor co-trustees, to assume the duties as trustee in the event of Ms. Debolt's resignation, death, disappearance or incompetency. Id. The Will named William and Jack — the husband of Wendy's aunt, Audra Lilley — as co-personal representatives of her estate.4 The Will provided that, upon her death, Ms. Debolt's assets were to pass to the. Trust. Compl., Ex. D at 1. The Trust provided that the Debtors, William and his wife, the Lilleys and others were to be distributees of the Trust's assets. Compl., Ex. A-1b.

In the nearly three years that elapsed between the time that Ms. Debolt executed the power of attorney and her death in January 2009, Wendy used her authority under the power of attorney to make purchases, pay bills, write checks and engage in various banking transactions. The Debtors assert that at all times prior to her death, Ms. Debolt was of sound mind, stayed informed of her financial affairs through constant review of financial statements, and acted under the advice of experienced estate planning counsel. Am. Answer, Doc. 22, ¶ 59-60. According to the Debtors, they "at all times acted under the authority of [Ms.] Debolt and with [her] informed consent...." Id. ¶ 60.

A. The State Court Proceedings

In March 2009, William and Wendy accepted their appointments as successor co-trustees of the Trust. Compl., Ex. E. Less than a year later, William and Jack filed a complaint ("State Court Complaint") (Mot., Ex. 5) in the Union County, Ohio, Court of Common Pleas, initiating the state court lawsuit ("State Court Action"). In the State Court Complaint's prayer for relief the Plaintiffs requested an order requiring the Debtors to provide an accounting, along with all supporting documentation, of all Trust funds that had been collected, deposited, withdrawn or expended for any and all purposes under Wendy's power of attorney; for an order removing Wendy as co-trustee of the Trust; and for judgment in the total amount of assets that the Defendants wrongfully withheld, transferred or expended.

On March 24, 2010, Plaintiffs filed a motion for default judgment. Less than a month later the state court granted the motion by way of a judgment entry and order ("Default Judgment Order")5 that stated, in its entirety, as follows:

Compl., Ex. R.

Following the May 27 hearing, the state court entered the following two-paragraph Judgment Order and Entry ("Injunction Entry"):

Compl., Ex. U. The Injunction Entry included no factual findings. No copy of a motion for injunction and temporary restraining order has been provided to this Court, nor have the Plaintiffs supplied a copy of the transcript (if one exists) recording the oral amendment to the motion for default judgment. The only references to an injunction in the State Court Complaint were in the title, i.e., "Complaint for Accounting, Injunction for Removal of Co-Trustee, and for Damages," and in paragraph 2 under the heading "Jurisdiction and Venue," which reads "[t]his is also an action for the removal of the Defendant Wendy S. Thompson as the Successor Co-Trustee of the Laura May Debolt Trust, as the Defendant must be enjoined from further acts as a fiduciary of the Laura May Debolt Trust, based upon the facts that reveal fraud and that are alleged with particularity herein." State Ct. Compl. at 2.

On September 14, 2010, the Union County Court of Common Pleas issued the second judgment entry ("Final Judgment Entry") (Compl., Ex. V) that followed from the May 27 damages hearing. The Final Judgment Entry recited that the Plaintiffs had appeared and presented evidence through counsel; that Jason had appeared pro se, but had presented no evidence;6 and that Wendy had not appeared. Final J. Entry at 1. The Final Judgment Entry recites that the Plaintiffs and Wendy each filed written closing arguments. Id. Under the Final Judgment Entry, the state court granted judgment against the Debtors, jointly and severally, in the amount of $107,271.76 plus interest at the statutory rate of 4% per annum from the date it was entered. Final J. Entry at 5. The Final Judgment Entry states that the court's findings are based "[u]pon thorough examination of the testimony and evidence as presented and admitted during the damages hearing," and "upon the analysis set forth in the spreadsheet attached hereto as Exhibit A[.]" Id. at 1.

According to the Docket, following issuance of the Final Judgment Entry, the Debtors filed both a motion to appeal and an appeal itself, which was subsequently dismissed. The Plaintiffs then filed for a writ of execution and noticed depositions of both Wendy and Jason in aid of execution. In response, the Debtors filed a request for hearing and a motion to quash the writ of execution. They also filed a motion for relief from judgment and sought leave to file a memorandum containing supplemental authority in support of their motion to quash. After briefing by both sides, the state court magistrate issued a decision and recommendation to which the Debtors filed objections. Eventually, on September 20, 2011, the parties filed an agreed entry on the motion to quash the writ of execution. Less than a year later — on August 9, 2012 — the Debtors filed their bankruptcy petition.

1. The State Court Complaint

The State Court Complaint contains two counts. Count I is entitled "Breach of Confidential Fiduciary Relationship; Failure to Render Accounting as Co-Trustee." State Ct. Compl. at 3. Count II is entitled "Breach of Confidential Fiduciary Relationship; Defendant Depleted Trust for Personal Gain." Id. In Count I of the State Court Complaint the Plaintiffs allege that Wendy failed to assist fully in creating a complete accounting of the assets of the Trust as required by her duties as a co-trustee of the Trust. Id. ¶ 18. The Plaintiffs further allege that the accounts provided by Wendy were incomplete, that the co-executors of the estate could not generate a full accounting without the information withheld by her, and that Wendy was unable to provide a full accounting of Trust assets due to "fraudulent acts and wrongful conversion of trust assets." Id. ¶¶ 18-19. Specifically, after stating that the successor trustees were required to make an accounting to all remainder beneficiaries of the net proceeds of the Trust, Plaintiffs allege that "[t]he Defendant has failed to assist fully in creating such a complete account; accounts that were provided are seriously inadequate." Id. ¶ 18-19. They also assert that "[t]he Plaintiffs cannot generate a full accounting without the information that is being withheld by the Defendant," and that "[u]pon information and belief, the Plaintiffs believe that the Defendant cannot provide a full accounting of the Trust assets because of fraudulent acts and wrongful conversion of Trust proceeds." Id. ¶¶ 20-21. No specific fraudulent acts are alleged in the State Court Complaint, nor is there any description of how or in what fashion the Trust proceeds were converted.

In Count II of the State Court Complaint Plaintiffs recite various provisions of the Trust, and a listing of the certificates of deposit belonging to Ms. Debolt that were closed by Wendy, along with various sums of money Wendy deposited into the Trust's checking account. Specifically, in the numbered paragraphs of the State Court Complaint set forth below, the Plaintiffs make the following allegations:

Id. ¶¶ 28-52 (references to exhibits omitted).

A review of paragraphs 28 through 50 of the State Court Complaint reveals no specific allegation of any fraudulent act or any misrepresentation on the part of the Defendants. Nor do those paragraphs allege that either Wendy or Jason obtained money or property from Ms. Debolt by fraud or misrepresentation. In paragraph 51 Plaintiffs allege that Wendy failed to account to the Trust for the proceeds of the certificates of deposit or of the trust accounts, and asserts that it "appears" that the Debtors converted the proceeds of the certificates of deposit, and used the trust account to their benefit in violation of Wendy's fiduciary duties. Id. ¶ 51. And in paragraph 52 the Plaintiffs assert that a full accounting will reveal "further instances of fraud and breach of [Wendy's] confidential fiduciary relationship with the [T]rust," and assistance by Jason "in perpetuating the fraud." Id. ¶ 52 (emphasis added). But in the paragraphs of Count II of the State Court Complaint preceding paragraphs 51-52 the Plaintiffs do not allege specific acts on the part of the Debtors that would constitute fraud or breach of fiduciary duty.

Finally, in the State Court Complaint's prayer for relief the Plaintiffs request three things: (1) an order requiring both Wendy and Jason to provide all records and an accounting for all funds of the Trust that had been collected, deposited, withdrawn or expended for any and all purposes under Wendy's power of attorney; (2) an order removing Wendy as co-trustee of the Trust if the state court should find that she violated her fiduciary duties to Ms. Debolt and the Trust; and (3) judgment in the total amount of Trust assets that both Debtors wrongfully withheld, transferred or expended. Id. at 5-6.

2. The State Court's Final Judgment Entry

In its Final Judgment Entry, the state court sets forth its findings under five separate headings, which are entitled "Huntington National Bank," "Richwood Bank," "Income," "Justifiable Expenses" and "Conclusion." Under the heading "Huntington National Bank," the court stated that two CDs (Nos. 0173 and 0199) were closed on July 16, 2007 and rolled into two new CDs (Nos. 6361 and 6358). Final J. Entry at 1. The court found that CD No. 6361 was closed on December 10, 2008 with a payout of $9,991.43, but found that "[t]here was no evidence or testimony presented as to the whereabouts or use of the funds withdrawn." Id. The Court found that CD No. 6358 was closed on January 20, 2009 with a payout of $10,005.98, and again, found that "[t]here was no evidence or testimony presented as to the whereabouts or use of the funds withdrawn." Id. In addition, the court found that Ms. Debolt had a savings account with a balance of $38,325.47 in September 2006; its balance was $1,241.23 on July 1, 2007, "prior to the first deposit of money from the CDs," and was $230.51 on April 1, 2010. Id. at 2. As to this savings account, the court stated that "[t]here was no evidence or testimony regarding the use of the funds withdrawn and no evidence or testimony of corresponding deposits." Id. at 2.

Under the heading "Richwood Bank," the court found the following with respect to certificates of deposit:

Id. at 2. The court also found that (1) two Richwood Bank checking accounts in the name of Laura May Debolt, trustee or successor trustees of the Trust, held a balance of $11,225.64 as of September 2006, and a balance of $9,255.48 as of May 2010, and (2) there had been no account activity since 2009. Id. at 2.

Under the heading "Income," the court determined that during the period from September 2006 through February 2009, Ms. Debolt had income totaling $54,942.46 from savings account interest, certificate of deposit interest, social security and rental of a house and farm land. Id. at 2.

In its findings set forth under the heading "Justifiable Expenses," the state court listed some 50 persons or entities to whom payments had been made, and also listed the amounts paid to those parties, but did not state the total amount of those payments. Id. at 3. It also found that "expenses incurred at Walmart over the course of 25 months were completely unreasonable for the care of one woman, who also received mobile meals. Based upon the evidence presented and the testimony the Court finds $100.00 per month to be reasonable additional expenses, for a total of $2,500.00." Id. The court also determined that "[w]ith regard to the monies paid to Wendy Thompson, there was only a meager accounting provided by Defendant to Plaintiffs, then to this Court, to explain the expenses. With no accurate, detailed accounting the Court thoroughly reviewed the bank statements and copies of checks submitted into evidence." Id. at 3-4. The court then listed a number of checks written to Wendy that it found did constitute legitimate expenses. The court determined the total amount of "expenses to be offset from assets and income is $57,735.82." Id. at 3-4.8

In its "Conclusion" section, the court recites the following:

ORDERED, ADJUDGED AND DECREED that Plaintiffs are granted judgment against Defendants, jointly and severally, in the amount of $107,271.76 plus interest at the statutory rate of 4% per annum from the date of this Entry. Costs to Defendants.

This is a final appealable order.

Id. at 4-5.

B. The Nondischargeability Claims Asserted in the Complaint

The Complaint contains essentially the same allegations as the State Court Complaint, with the addition of a claim for avoidance of an alleged fraudulent transfer based on a conveyance made by the Debtors, following Ms. Debolt's death, of a portion of the real property they inherited from her. The portions of the Complaint that pertain to the Plaintiffs' nondischargeability claims, which are the subject of the Motion, are described below.

Count One — § 523(a)(2)

Plaintiffs allege that the Debtors "violated... [§ 523(a)(2) in that they obtained money, property and/or services by false pretenses, false representations, or actual fraud and/or [by] using statements in writing that were materially false." Compl. ¶ 54. The Complaint does not specify whether this nondischargeability claim is based on § 523(a)(2)(A), (a)(2)(B) or both of these provisions.

Count Two — § 523(a)(4)

Count Three — § 523(a)(6)

According to the Plaintiffs, the Debtors "violated ... [§] 523(a)(6) by willfully and maliciously injuring Plaintiffs by willfully and maliciously converting assets including, but not limited to, tangible and indelible [sic] property" of the Trust and of Ms. Debolt's estate. They also allege that the Debtors concealed the conversion of the assets. Compl. ¶ 63.

C. The Summary Judgment Motion, Response and Reply

In seeking partial summary judgment, Plaintiffs argue that, based on the Debtors' default in state court, "all operative facts of this adversary complaint have already been litigated by a competent court." Mot. at 4. As a result, they assert, all elements of §§ 523(a)(2), (4), and (6) have been established, the Final Judgment Entry should have preclusive effect, and the debt arising from their judgment in the amount of $107,271.76 should be declared nondischargeable.

By way of their Response the Debtors argue that the Motion should be denied for two reasons. First, the Plaintiffs disregarded the Court's Scheduling Order Following Pretrial Conference ("Scheduling Order") (Doc. 23), in that they failed to set forth a complete and accurate statement of material facts, with each fact supported by a specific citation to the record.9 Resp. At 4-5. Second, Debtors assert that the state court default judgment provides an insufficient basis upon which to grant summary judgment, because the issues Plaintiffs seek to preclude were not "actually litigated" below, and no evidence was produced to support a finding that the elements of §§ 523(a)(2), (4) and (6) have been met. They argue that the Final Judgment Entry upon which the Plaintiffs rely contains no findings of fact or conclusions of law that would establish the type of misconduct on the Debtors' part that would support a nondischargeability judgment by this Court — that is, fraud, defalcation by a fiduciary, conversion, embezzlement, larceny or willful and malicious injury. Id. at 12-16.

In their Reply, Plaintiffs maintain that language in the Final Judgment Entry stating that Wendy wrote checks on Ms. Debolt's account, that certain funds were "missing and unaccounted for," and that certain expenses "were completely unreasonable for the care of one woman," coupled with the Debtors' admission of all allegations by virtue of their initial default, provide a sufficient basis to warrant the Court's application of collateral estoppel. According to the Plaintiffs, the doctrine of collateral estoppel requires a determination that the state court judgment is non-dischargeable because (1) the parties in the state court action are the same as the parties in this adversary proceeding, (2) a final judgment on the merits was entered in state court following a full and fair opportunity for the Debtors to litigate, (3) the issue of fraud was admitted by default and was necessary to the final judgment, and (4) the issues of fraud presented in state court were identical to the issues of fraud before the Court here. Reply at 12.

IV. Legal Analysis

A. Summary Judgment Standard

Under Rule 56 of the Federal Rules of Civil Procedure ("Civil Rule(s)"), made applicable in this adversary proceeding by Rule 7056 of the Federal Rules of Bankruptcy Procedure ("Bankruptcy Rule(s)"), a court "shall grant summary judgment if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Civil Rule 56(a). "On a motion for summary judgment, facts must be viewed in the light most favorable to the nonmoving party only if there is a genuine dispute as to those facts." Ricci v. DeStefano, 557 U.S. 557, 586, 129 S.Ct. 2658, 174 L.Ed.2d 490 (2009) (internal quotation marks omitted). A dispute is genuine only if it is "based on evidence upon which a reasonable [finder of fact] could return a [judgment] in favor of the non-moving party." Gallagher v. C.H. Robinson Worldwide, Inc, 567 F.3d 263, 270 (6th Cir.2009). And "[a] factual dispute concerns a `material' fact only if its resolution might affect the outcome of the suit under the governing substantive law." Id. "The party moving for summary judgment always bears the initial responsibility of informing the court of the basis for its motion, and identifying those portions of the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits if any which it believes demonstrate the absence of a genuine issue of material fact." Ray's Servs., Inc. v. Cunningham (In re Cunningham), No. 123201, 2014 WL 1379136, at *2 (Bankr.N.D.Ohio Apr. 8, 2014) (internal quotation marks omitted) (quoting Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986)). A genuine issue for trial exists if the evidence is such that a reasonable factfinder could find in favor of the non-moving party. See Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986).

B. Issue Preclusion

The Plaintiffs seek summary judgment in their favor on the basis of the collateral estoppel effect of the state court orders. The purpose of the collateral estoppel doctrine — also known as issue preclusion10 — is to prevent the relitigation of issues of fact or law, necessary to the judgment, that have already been decided between the same parties. See Wagner v. Schulte (In re Schulte), 385 B.R. 181, 188 (Bankr.S.D.Ohio 2008). The party seeking to invoke issue preclusion has the burden of establishing its applicability. See Simmons Capital Advisors, Ltd. v. Bachinski (In re Bachinski), 393 B.R. 522, 535 (Bankr.S.D.Ohio 2008). Under 28 U.S.C. § 1738, federal courts must give the same "full faith and credit" to a state court judgment as would be given by the laws of that state. Fordu, 201 F.3d at 703. Thus, a federal court "faced with the question of whether to give full faith and credit to a state court default judgment [must] `consider first the law of the State in which the judgment was rendered to determine its preclusive effect.'" Bay Area Factors v. Calvert (In re Calvert), 105 F.3d 315, 317 (6th Cir.1997) (quoting Marrese v. Am. Acad. of Orthopaedic Surgeons, 470 U.S. 373, 380, 105 S.Ct. 1327, 84 L.Ed.2d 274 (1985)). And "[t]he doctrine of collateral estoppel applies in dischargeability actions under 11 U.S.C. § 523(a)." Rally Hill Prods., Inc. v. Bursack (In re Bursack), 65 F.3d 51, 53 (6th Cir.1995) (citing Grogan v. Garner, 498 U.S. 279, 284 n. 11, 111 S.Ct. 654, 112 L.Ed.2d 755 (1991) ("We now clarify that collateral estoppel principles do indeed apply in discharge exception proceedings pursuant to § 523(a).")). "Bankruptcy courts' exclusive jurisdiction over dischargeability issues does not alter this rule." Bursack, 65 F.3d at 53. The fact that Congress intended bankruptcy courts to determine issues of dischargeability does not require the bankruptcy court to redetermine all the underlying facts. See Schulte, 385 B.R. at 189 (citing Spilman v. Harley, 656 F.2d 224, 227 (6th Cir.1981)).

To determine whether Ohio courts would give preclusive effect to a prior judgment, the Court must find four elements:

Sill v. Sweeney (In re Sweeney), 276 B.R. 186, 189 (6th Cir. BAP 2002). When that prior judgment is a default judgment, it "must contain express findings in order to be given preclusive effect in subsequent litigation between the parties." Id. at 193.

In Hinze v. Robinson (In re Robinson), 242 B.R. 380 (Bankr.N.D.Ohio 1999), the bankruptcy court found that in order to meet the "actual litigation" requirement of issue preclusion when the underlying judgment is obtained by default, two circumstances must exist:

Id. at 387. The Sixth Circuit Bankruptcy Appellate Panel specifically adopted the rule set forth in Robinson, stating: "Considering the Ohio authority that does exist, we find Robinson to be a competent and useful prediction of the rules the Supreme Court of Ohio would adopt if it were to pass directly on this question. Accordingly, we adopt the basic standard in Robinson as our rule of decision in this case." Sweeney, 276 B.R. at 194.

Applying the principles stated in Sweeney here, the Court finds there is no dispute that the state court issued a final judgment when it entered the Final Judgment Entry. Nor is there any question that the parties in the state court action are identical to the parties named in the Complaint. Thus, as to the Final Judgment Entry, two of the four elements required to apply the doctrine of issue preclusion have been established by the Plaintiffs. While the Docket notation reflecting the filing of an answer prior to the state court's entry of default judgment raises a question as to the issue of whether the Debtors had a fair and full opportunity to litigate in the state court, they have not raised this issue in opposing the Motion.

Thus, remaining for determination are the questions of whether the issues raised in the Complaint are identical to the issues in the State Court Action, and whether the issues were actually and directly litigated in the prior suit and were necessary to the final judgment.

1. Identity of Issues/Necessary to Final Judgment

Hoffman v. Anstead (In re Anstead), 436 B.R. 497, 501 (Bankr.N.D.Ohio 2010) (citations omitted). In determining whether the issues raised in the Complaint are identical to the issues adjudicated in the State Court Action, the Court must analyze the elements of Plaintiffs' nondischargeability claims, which are asserted under § 523(a)(2), (4) and (6) of the Bankruptcy Code.

a. Section 523(a)(2)

A debt may be excepted from discharge under § 523(a)(2), if the debt is

11 U.S.C. § 523(a)(2)(A) and (B).

Here, while the Complaint asserts a cause of action under both subsections (a)(2)(A) and (a)(2)(B), neither the Motion nor the Response mentions (a)(2)(B). And neither the State Court Complaint nor the Complaint references or describes the use by Wendy and/or Jason of any statement in writing, false or otherwise, respecting their financial condition, on which the Plaintiffs reasonably relied to their detriment. Thus, on this record, the Plaintiffs clearly are not entitled to summary judgment on their § 523(a)(2)(B) claim.

For the court to find a debt nondischargeable under § 523(a)(2)(A), a creditor must prove:

Rembert v. AT & T Universal CardServ., Inc. (In, re Rembert), 141 F.3d 277, 280-81 (6th Cir.1998). "[T]he elements of common law fraud in Ohio are substantially equivalent to those required to establish a nondischargeable debt based on false representation under § 523(a)(2)(A)." Schafer v. Rapp (In re Rapp), 375 B.R. 421, 430 (Bankr.S.D.Ohio 2007). They include:

Unencumbered Assets, Trust v. JPMorgan Chase Bank (In re Nat'l Century Fin. Enters., Inc., Inv. Litig.), 604 F.Supp.2d 1128, 1149 (S.D.Ohio 2009) (citing Russ v. TRW, Inc., 59 Ohio St.3d 42, 570 N.E.2d 1076, 1083-84 (1991)).

b. Section 523(a)(4)

Section 523(a)(4) excepts from discharge any debt "for fraud or defalcation while acting in a fiduciary capacity, embezzlement, or larceny." 11 U.S.C. § 523(a)(4). In the Sixth Circuit, the defalcation provision of this section is limited only to those situations involving an express or technical trust relationship arising from placement of a specific res in the hands of the debtor. Commonwealth Land Title Co. v. Blaszak (In re Blaszak), 397 F.3d 386, 391 (6th Cir.2005) (citing R.E. Am., Inc. v. Garver (In re Garver), 116 F.3d 176, 180 (6th Cir.1997)). "It is well established that the defalcation provision of § 523(a)(4) applies to express or technical trusts, but not to constructive trusts that courts may impose as an equitable remedy." Id. "This rule is limited to a trust relationship arising from the placement of a specific res in the hands of the debtor." Astro Bldg. Supplies, Inc. v. Slavik, 443 Fed.Appx. 993 (6th Cir.2011). "To establish the existence of an express or technical trust, a creditor must demonstrate: "(1) an intent to create a trust; (2) a trustee; (3) a trust res; and (4) a definite beneficiary.'" Bd. of Trs. of Ohio Carpenters & Pension Fund v. Bucci (In re Bucci), 493 F.3d 635, 640 (6th Cir.2007) (quoting Blaszak, 397 F.3d at 391-92). Further, there is no breach of fiduciary duty where a debtor is authorized to take the action taken. See King's Welding & Fabricating, Inc. v. King, No. 5:11CV1792, 2012 WL 3732514, at *10 (N.D.Ohio Aug. 27, 2012).

In order to prove embezzlement under § 523(a)(4), a creditor must show "that he entrusted his property to the debtor, the debtor appropriated the property for a use other than that for which it was entrusted, and the circumstances indicate fraud." Brady v. McAllister (In re Brady), 101 F.3d 1165, 1173 (6th Cir.1996). Larceny is "the fraudulent and wrongful taking and carrying away of the property of another with intent to convert such property to the taker's use without the consent of the owner." Graffice v. Grim (In re Grim), 293 B.R. 156, 166, n. 3 (Bankr.N.D.Ohio 2003). "Embezzlement differs from larceny in that the embezzler's initial acquisition of the property is lawful." Baker v. Wentland (In re Wentland), 410 B.R. 585, 596 (Bankr.N.D.Ohio 2009).

c. Section 523(a)(6)

Section 523(a)(6) excepts from discharge any debt "for willful and malicious injury by the debtor to another entity or to the property of another entity[.]" 11 U.S.C. § 523(a)(6). "From the plain language of the statute, the judgment must be for an injury that is both willful and malicious. The absence of one creates a dischargeable debt." Markowitz v. Campbell (In re Markowitz), 190 F.3d 455, 463 (6th Cir.1999). In Markowitz, the Sixth Circuit adopted the following standard: "we now hold that unless the actor desires to cause consequences of his act, or... believes that the consequences are substantially certain to result from it,' Restatement (Second) of Torts § 8A, at 15 (1964), he has not committed a `willful and malicous injury' as defined under § 523(a)(6)." Id. at 464. "[O]nly acts done with the intent to cause injury — and not merely acts done intentionally — rise to the level of willful and malicious injury for purposes of satisfying § 523(a)(6)." Kennedy v. Mustaine (In re Kennedy), 249 F.3d 576, 581 (6th Cir.2001) (citing Kawaauhau v. Geiger, 523 U.S. 57, 61, 118 S.Ct. 974, 140 L.Ed.2d 90 (1998)). And in Geiger, the Supreme Court held that to satisfy the standard of a "willful" injury under § 523(a)(6), the creditor must show that the debtor committed a "deliberate or intentional injury, not merely a deliberate or intentional act that leads to injury." Geiger, 523 U.S. at 61, 118 S.Ct. 974. A "more encompassing interpretation could place within the excepted category a wide range of situations in which an act is intentional, but injury is unintended, i.e., neither desired nor in fact anticipated by the debtor." Id. at 62, 118 S.Ct. 974. See also Salem Bend Condo. Ass'n v. Bullock-Williams (In re Bullock-Williams), 220 B.R. 345, 347 (6th Cir. BAP 1998).

d. Common Element of Intent or Scienter

A finding of nondischargeability under §§ 523(a)(2), (4) and (6) requires the common element of scienter, "whether it is an intent to defraud/deceive under § 523(a)(2), a[[fraudulent] intent to misappropriate another's property [where the nondischargeability claim is based on embezzlement or larceny] under § 523(a)(4)[,] or the intentional injury to another's property under § 523(a)(6)." Anstead, 436 B.R. at 500. See also NCM Enters. Sand & Stone Ltd. v. Earnest (In re Earnest), No. 12-3040, 2013 WL 795399, at *5 (Bankr.N.D.Ohio March 1, 2013) ("In an action brought under either § 523(a)(2) or § 523(a)(4), it is generally necessary to show that the ... Defendant committed the type of intentional conduct necessary to hold a debt nondischargeable. [A finding of nondischargeability] cannot, as suggested by the Plaintiffs, be inferred [simply] from the imposition of liability against the Defendant in the state-court judgment."); Kimco Leasing Co. v. Wilson (In re Wilson), 383 B.R. 678, 681 (Bankr. N.D.Ohio. 2007) ("[B]y its express terms, § 523(a)(6) requires that the injury be both willful and malicious.").

The Plaintiffs have not met their burden of demonstrating an identity of issues or that a finding of either scienter or intent to injure was necessary to the state court's Final Judgment Entry. A review of the two counts in the State Court Complaint, along with the Plaintiffs' requests for relief stated in the prayer, reveals nothing that would require the state court to make a finding regarding either Debtor's state of mind. The allegations in the State Court Complaint consist primarily of statements that the Debtors failed to assist in creating a complete accounting of the Trust assets, and recitations of certificates of deposits closed and monies deposited into the Trust checking account. Absent are any specific allegations that the failure to assist in an accounting of the assets, or the closing of the certificates of deposit and/or the depositing of funds was fraudulent, or was intended to deceive, defraud, misappropriate property or otherwise cause harm or injury. The Plaintiffs asked for an accounting, an order removing Wendy as a co-trustee of the Trust if they established that she had violated fiduciary duties to Ms. Debolt and the Trust, and for a money judgment in the total amount of assets "wrongfully withheld, transferred or expended." State Ct. Compl. at 6.

The Default Judgment Order establishing liability by default contains no findings whatsoever. And the Final Judgment Entry is also devoid of any findings regarding the existence of a fiduciary duty,11 a breach of fiduciary duty or a wrongful withholding, transfer or expenditure of assets. It simply recites that monies were missing and unaccounted for by the Debtors without making a finding as to whether this was a result of an intentional, wrongful act — or for that matter, even negligence or mere inadvertence. As to the funds withdrawn from the closing of the Huntington National Bank certificates of deposit, the state court twice stated that "[t]here was no evidence or testimony as to the whereabouts or use of the funds withdrawn." Final J. Entry at 1. It found that Walmart expenses were "completely unreasonable for the care of one woman," id. at 3, but it made no finding that the funds expended were as a result of any act intended to cause injury, be it by fraud, misrepresentation, conversion, defalcation by a fiduciary (as defined by the Supreme Court in Bullock), embezzlement, larceny or breach of fiduciary duty. As to monies paid to Wendy, the state court found "only a meager accounting," but again, made no finding that the funds received by Wendy were obtained by her through any act that would cause the debt to be excepted from discharge under § 523(a).

2. Actually and Directly Litigated

The Plaintiffs argue that, by virtue of Ohio Civil Rule 8(d), Wendy and Jason have admitted to fraudulent behavior as outlined in the State Court Action.12 Those admissions, according to the Plaintiffs, satisfy the "actually and directly litigated" element necessary to the application of issue preclusion. But as the Sixth Circuit Bankruptcy Appellate Panel made dear in Sweeney, a mere failure to answer the factual allegations contained in a plaintiffs state court complaint, standing alone, can never provide a sufficient basis for the application of the collateral estoppel doctrine in a dischargeability proceeding. Sweeney, 276 B.R. at 193-94; see also Robinson, 242 B.R. at 387. Moreover, a review of the State Court Complaint reveals that it does not set forth with any specificity the purported fraudulent conduct on the part of Wendy and/or Jason that they are deemed to have "admitted" by their default.

"When assessing whether a state court judgment is entitled to preclusive effect in a dischargeability action, a bankruptcy court may review the entire record in the state court case to determine the grounds for, or the meaning of the state court's judgment or order." Cunningham, 2014 WL 1379136, at *8; see also Miller v. Grimsley (In re Grimsley), 449 B.R. 602, 615 (Bankr.S.D.Ohio 2011). Here, while the Default Judgment Order established liability on the part of the Debtors, it is difficult to understand the basis on which liability was found, given the paucity of detail in the State Court Complaint.13

While it appears from the Final Judgment Entry that the Plaintiffs presented evidence to the state court regarding damages, nothing in the record suggests that they submitted evidence as to the Debtors' alleged fraud or other misconduct. And even if "the Plaintiffs in this case ... submitted evidence from which the Ohio court could have found the kind of fraud that would bar a discharge in bankruptcy, it is apparent that the court made no findings of fact or conclusions of law with respect thereto, not even informal ones." Sweeney, 276 B.R. at 194. Indeed, the Final Judgment Entry is notable for what it does not contain. It includes no specific findings by the state court establishing that Wendy and/or Jason had a fiduciary relationship with Ms. Debolt or the Plaintiffs, that they intended to deceive her or the Plaintiffs, that they engaged in any act of fraud, obtained money from Ms. Debolt or the Plaintiffs through a misrepresentation on which she/they reasonably relied, or that their activities constituted defalcation by a fiduciary (as defined by the Supreme Court in Bullock), conversion, embezzlement, larceny or willful and malicious injury. As in Sweeney, "[i]t is this lack of clarity that contributes to our conclusion that the state court's brief statement does not meet the test in Robinson because it is not `sufficiently detailed to support the application of the collateral estoppel doctrine.'" Id. (quoting Robinson, 242 B.R. at 387). As in Sweeney, the Court here is faced with an incomplete state court record consisting of a Final Judgment Entry that lacks the specific findings required to establish an exception to discharge under §§ 523(a)(2), (4) or (6) of the Bankruptcy Code.

V. Conclusion

For the foregoing reasons, the Motion is DENIED. A status conference at which a trial date will be set will be scheduled by separate order.

IT IS SO ORDERED.