June 17, 2022, US Bankruptcy Court for the Central District of California – Arturo Cisneros, as Chapter 7 trustee (“Trustee”) of the bankruptcy estate of Daisy Wheel Ribbon Co., Inc. (“Debtor”) files a motion for summary judgment or partial summary adjudication pursuant to Rule 56 of the Federal Rules of Civil Procedure against Briggs Law Corporation (“Briggs” and “Defendant”).
Trustee Cisneros asserts six claims for relief in his complaint against the Defendant including avoidance and recovery of alleged fraudulent transfers and disallowance of claims.
On October 3, 2016, Debtor was sued by HP in the Superior Court of the State of California in which the Debtor was represented by the Defendant. The jury, in that case, rendered its verdict on May 14, 2019, finding in favor of HP and against Debtor for $432,750.
Approximately three weeks after jury verdict in HP suit, the Debtor allegedly executed a secured promissory note in favor of Defendant in the amount of $750,000. The Trustee contends that the Debtor’s 2019 and 2018 balance sheets do not reflect a debt owed to the Defendant.
The Trustee alleges that the Defendant, on the one hand, and the Debtor’s principals on the other hand, “contrived and manufactured” a secured promissory note in the amount of $750,000 and corresponding UCC Financing Statement in favor of Defendant “with the intent to encumber” all of the Debtor’s assets and to hinder, delay and defraud any and all of Debtor’s creditors, including HP.
Trustee Cisneros pleads for a summary judgment, and in the alternative, for a partial summary judgment, to be entered in favor of him and against the Defendant on all claims in the complaint.
Arturo Cisneros v. Briggs Law Corporation ( In re Daisy Wheel Ribbon Co., Inc.), AP No. 21-01031-MH, US Bankruptcy Court for the Central District of California.