Now Updating
IN RE: EDWIN LICUP, ET AL V. JEFFERSON AV

Summarizing by Amir Shachmurove

John J. Petr, v. BMO Harris Bank N.A.

Summarizing by David Treacy

In re: RGN-GROUP HOLDINGS, LLC, et al.,

Summarizing by Stephen Falanga

Buchwald Capital Advisors LLC v. JP Morgan Chase Bank, N.A. (In re M. Fabrikant & Sons, Inc)

Citation:
12-4335, Slip Op., Oct. 15, 2013
Tag(s):
Ruling:
Affirmed dismissal of collapsing claims, subsequent transfer claims based on intentional fraud, preference claims, and disallowance claims.
Procedural context:
On appeal from district court's affirmance of bankruptcy court's dismissal of fraudulent transfer and preference claims in avoidance action brought by trustee (third amended complaint).
Facts:
The Court first affirmed dismissal of the collapsing claims. The court found that, at best, the complaint alleged that banks had actual or inquiry notice of the debtor's precarious financial condition. This was not sufficient to show plausible actual or constructive knowledge of the entire fraudulent scheme (debtor's executives using debtor's lines of credit at defendant banks to siphon off millions of dollars to affiliates). The Court next affirmed dismissal of subsequent transfer claims alleging intentional fraud on the ground that actual fraud must be pled with particularity, and trustee had not identified dates, amounts, or other relevant circumstances of the particular transfers at issue. The Court next affirmed dismissal of the preference claims on the ground that they were time-barred because they were added to the complaint more than a year after the bankruptcy court's deadline for commencing avoidance actions had passed. Further, the claims did not relate back to the fraudulent transfers alleged in the initial complaint. Finally, the court affirmed dismissal of the disallowance claim on the ground that that claim "rises or falls" with the trustee's other claims, which had been dismissed.
Judge(s):
Katzmann, Jacobs, Pooler

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