New Opinions

Complaint Alleging Fraud Must Satisfy Heightened Pleading Requirements

January 24, 2022 admin

January 18, 2022, Western District of New York – The facts of the case as summarised in the opinion are : Plaintiff Thar Process, Inc., a hemp processor, brought a breach of contract claims against Defendant Sound Wellness, LLC when Sound Wellness refused to pay for CBD oil that Thar had processed. Sound Wellness, in turn, […]

Factual Allegation in Trustee’s Complaint Not Sufficient to Pass Muster Under Rule 9(b), Delaware Court Dismisses Trustee’s Intentional Fraudulent Transfer Claim

January 19, 2022 admin

January 14, 2022, District of Delaware – Debtor Education Management Corporation (EDMC) and its affiliates ran for-profit colleges. As pointed out in the Court opinion – the primary allegation in the complaint filed by the Chapter 7 Trustee, George Miller, was that after a 2006 leveraged buyout, the Debtors implemented a series of aggressive recruiting practices […]

Sponsorship Payments Were Made in Ordinary Course of Business

January 13, 2022 admin

January 11, 2022, Northern District of Texas – Plaintiff Trustee Dennis Faulkner of Debtor Reagor-Dykes Auto Group Creditors Liquidating Trust brought a lawsuit against Broadway Festivals, Inc. for avoidance and recovery of a preferential transfer under §§ 547 and 550 of the Bankruptcy Code. As regards the facts – Broadway, a 501(c)(3) charitable organization, annually […]

Sixth Circuit : Rooker-Feldman Doctrine Did Not Support Bankruptcy Court’s Dismissal of Debtor’s Claim

January 6, 2022 admin

December 27, 2021, Sixth Circuit – The facts of the case as stated in the opinion are : Debtor Hakeem Lowry owned a home in Southfield, Michigan and failed to pay his property taxes for several years. The Oakland County Treasurer foreclosed on Lowry’s home in 2017. The City of Southfield exercised its statutory right […]

Garnished Funds Are Property of the Estate & Avoidable as a Preference

January 1, 2022 admin

December 22, 2021, District of Puerto Rico – Earlier this year, Educational Technical College Inc. brought a complaint against Atue Real Estate S.E. and its managing partner, alleging that the creditors garnished certain funds several days before the bankruptcy filing pursuant to a writ of execution of judgment entered in a local Court and that […]

Tax Refund Not Property of the Bankruptcy Estate, Income Attributable To the Tax Refund Was Derived From the Employment of the Non-Debtor Spouse

December 26, 2021 admin

December 13, 2021, Eastern District of Texas – The case revolves around a 2018 tax refund that a trustee maintains is a property of the debtor’s bankruptcy estate. The trustee also argues that any additional refund that the debtor and his spouse receive in the future on account of the pre-bankruptcy capital loss carryforward would […]

A Florida Court Grants a Defendant Motion to Dismiss a Debtor’s Complaint to Avoid a Foreclosure Sale as a Preference

November 22, 2021 admin

November 10, 2021, Southern District of Florida – The case discusses Defendant Wilmington’s motion to dismiss a plaintiff’s amended complaint and Debtor Plaintiff’s response to Defendant’s motion to dismiss. The facts of the case as found out by the Court are – Debtor Violeta Marina Nunez defaulted under a loan, which it had taken to purchase […]

A Delaware Court Grants D&M Holdings’ Motion For Summary Judgment in Part

November 14, 2021 admin

November 8, 2021, District of Delaware – The Court granted Defendant D&M Holdings US Inc.’s motion for summary judgment in part and denied in part. Defendant had filed a summary judgment against a complaint filed by Trustee George L. Miller for the estate of Digital Networks North America, Inc. The Trustee’s complaint sought to recover and […]

Mississippi Bankruptcy Court – Core Claims To Remain With Court, Non-Core Claims Must Be Arbitrated

October 25, 2021 admin

October 19, 2021, Northern District of Mississippi – The case refers to a joint motion to stay and compel arbitration or to dismiss for failure to state a claim filed by the Defendants, Stonepoint Legal (“Stonepoint”), Donald Norris, Leigh Anne Cade, and Strategic Financial Solutions, LLC and the response filed by the Plaintiff Trustee Locke […]

Lack of Fraudulent Intent in Receiving Transfers – A Trustee’s Motion Denied in Part

October 19, 2021 admin

October 13, 2021, District of Idaho – The case involves a motion for partial summary judgment filed by Plaintiff Wayne Klein against Defendant Jonathon Peirsol. Defendant was a sole owner and shareholder of J & J Chemical, Inc. (“Chemical”). Chemical filed a Chapter 11 bankruptcy petition. Later, Defendant pled guilty to a crime and was sentenced […]

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