Chapman v. Forsyth (1844) 43 U.S. 202, was an action of assumpsit for the proceeds of 150 bales of cotton shipped to and sold by the defendants as brokers or factors of the plaintiff. One of the defendants pleaded a discharge in bankruptcy, and the judges of the Circuit Courtwere divided in opinion on the question whether a commission merchant or factor, who sells for others, is indebted in a fiduciary capacity within the act, if he withholds the money received for property sold by him, and if the property is sold, and the money received on the owner's account. In that case, the principal delivered 150 bales of cotton to the factor for the factor to sell, but the factor never gave the proceeds from the sale to the principal. Because the Debtor merely failed to return her principal's property on the termination of her agency relationship, the Debtor was not acting in a "fiduciary capacity" as contemplated by 11 U.S.C. 523(a)(4). The opinion of this court was delivered by Mr. Justice McLean, and the above question was answered in the following terms: "If the act embrace such a debt, it will be difficult to limit its application. It must include all debts arising from agencies; and, indeed, all cases where the law implies an obligation from the trust reposed in the debtor. Such a construction would have left but few debts on which the law could operate. In almost all the commercial transactions of the country, confidence is reposed in the punctuality and integrity of the debtor, and a violation of these is, in a commercial sense, a disregard of a trust. But this is not the relation spoken of in the first section of the act. The cases enumerated, `the defalcation of a public officer,' `executor,' `administrator,' `guardian,' or `trustee,' are not cases of implied, but special trusts, and the `other fiduciary capacity' mentioned, must mean the same class of trusts. The act speaks of technical trusts, and not those which the law implies from the contract. A factor is not, therefore, within the act. This view is strengthened, and, indeed, made conclusive by the provision of the fourth section, which declares that no `merchant, banker, factor, broker, underwriter, or marine insurer,' shall be entitled to a discharge, `who has not kept proper books of accounts.' In answer to the second question, then, we say, that a factor, who owes his principal money received on the sale of his goods, is not a fiduciary debtor within the meaning of the act." The doctrine of Chapman v. Forsyth does not permit reliance on the superiority in power and knowledge of the agent over the principal as a basis for finding the existence of a fiduciary capacity. The true distinction of Chapman is that an express or technical trust, or its equivalent, is required, which can never be created by statute alone absent the parties' own intent. The Supreme Court in the case of Chapman v. Forsyth, explained that the exception in the first section of the Bankruptcy Act of 1841 applied to the debts and not to the person. Thus, while a cold reading of the statute today might suggest that the existence of fiduciary debts made a person ineligible for bankruptcy relief, this was not the case and fiduciary debts were merely excepted from discharge.